Aim is a sole trader who does not keep a full set of accounting records. An analysis of his bank transactions is shown below on the left. Aim’s other assets and liabilities were as stated below:

Notes:

(i) Prior to banking cash takings from customers Aim made payments listed.

(ii) Aim depreciates motor van and shop fittings, on a straight-line basis (assuming no residual value) at 20% and 10% per year respectively, depreciating for the full year in the year of purchase and not depreciating in the year of disposal. 

Required: 

Prepare Aim’s Statement of income for the year ended 30 June 2011.

Transcribed Image Text:

Overdraft 1 July 2010 Cash banked Disposal of motor van Payment for purchases New van (on 1.1.2011) Rent and expenses Drawings Overdraft 30 June 2011 Receipts £ 418,200 4,500 77,600 500,300 Payments £ 32,400 316,300 22,000 49,200 80,400 500,300 As at 30 June Shop fittings (cost £45,000) Motor van (cost £18,000) New motor van Trade receivables Trade payables Inventories Rent and expenses accrued 2010 £ ? 22,000 48,600 24,200 63,200 13,000 2011 £ 35,000 4,000 44,700 19,600 58,900 12,500