Bush, Home and Wilson share profits and losses in the ratios 4:1:3 respectively. Their trial balance as at 30 April 2020 was as follows:

Draw up a set of financial statements for the year ending 30 April 2020. The following notes are relevant at 30 April 2020:
(i) Inventory 30 April 2020, £74,223.
(ii) Business rates in advance £200; Inventory of postage stamps £68.
(iii) Increase Allowance for doubtful debts to £1,400.
(iv) Salaries: Home £18,000; Wilson £14,000. Not yet recorded.
(v) Interest on Drawings: Bush £300; Home £200; Wilson £240.
(vi) Interest on Capitals at 8 per cent.
(vii) Depreciate Computers £2,800; Office equipment £1,100.

Transcribed Image Text:

Sales Returns inwards Purchases Carriage inwards Inventory 30 April 2019 Electricity, gas & water Salaries and wages Bad debts Allowance for doubtful debts 30 April 2019 General expenses Business rates Postage Computers at cost Office equipment at cost Accumulated depreciation at 30 April 2019: Computers Office equipment Trade payables Trade receivables Cash at bank Drawings: Bush Home Wilson Current accounts: Bush Home Wilson Capital accounts: Bush Home Wilson Dr 10,200 196,239 3,100 68,127 190 54,117 1,620 1,017 2,900 845 8,400 5,700 51,320 5,214 39,000 16,000 28,000 2,117 494,106 Cr 334,618 950 3,600 2,900 36,480 5,940 9,618 60,000 10,000 30,000 494, 106