Duxbury started in business on 1 January 2012. The following is his trial balance as at 31 December 2012:

Additional information:
1. Stock at 31 December 2012 was valued at £10 000.
2. At 31 December 2010 an amount of £400 was outstanding for telephone expenses, and the business rates had been prepaid by £500.
3. The delivery van is to be depreciated at a rate of 20 per cent per annum on cost.
4. Duxbury decides to set aside a provision for bad and doubtful debts equal to 5 per cent of trade debtors as at the end of the year.

Required:
Prepare Duxbury's trading and profit and loss account for the year to 31 December 2012 and a balance sheet as at thatdate.

Transcribed Image Text:

Dr Cr Capital Cash Delivery van, at cost Drawings Office expenses Purchases Sales Trade creditors Trade debtors 40000 300 20000 10 600 12 100 65 000 95 000 5 000 32 000 140 000 140 000