A Danielle is a sole proprietor and you are given the following information relating to her business:

\section*{Additional information:}
(i) The inventory was counted at 30 April 2024 and was valued at a cost of \(£ 24,010\).
(ii) Depreciation is to be applied at the following annual rates:
Machinery \(20 \%\)
(reducing balance)
Motor vehicles \(25 \%\)
(straight line)
(iii) The amount shown for maintenance on the trial balance includes a payment of \(£ 9,480\) which represents an annual maintenance contract to 30 June 2024.
(iv) Motor expenses incurred for which no invoices have yet been received amount to a total of \(£ 5,348\).
(v) Based on an analysis of the business's experience with debt collection, the allowance for doubtful debts is to be set at \(4 \%\) of trade receivables.
\section*{Required:}
Prepare an income statement for Danielle's business for the year ended 30 April 2024 as well as a balance sheet as at that date.

Transcribed Image Text:

Trial balance as at 30 April 2024 Allowance for doubtful debts at 1 May 2023 Bad debts expense Bank Capital Carriage inwards Drawings Inventory as at 1 May 2023 Machinery at cost Machinery: accumulated depreciation at 1 May 2023 Maintenance Motor expenses Motor vehicles at cost Motor vehicles: accumulated depreciation at 1 May 2023 Purchases Sales Trade payables Trade receivables Wages & salaries Dr 24,856 1,871 32,129 23,130 226,500 20,544 18,837 169,140 274,278 82,800 115,197 989,282 Cr 4,184 1,961 236,862 80,220 54,360 548,555 63,140 989,282