The trial balance for a small business at 31 August 2015 is as follows:

At 31 August 2015 there was:
• Inventory valued at cost prices £9,100 • Accrued rent of £400 • Prepaid business rates of £300 • The motor vehicle is to be depreciated at 20 per cent of cost

Required:
1 The adjustments to the ledger accounts for rent and business rates for the year to 31 August 2015.
2 A statement of profit or loss for the year ending 31 August 2015, together with a statement of financial position as at that date.

Transcribed Image Text:

Inventory 1 September 2014 Purchases and sales Rent Business rates f 8,200 26,000 40,900 4,400 1,600 Sundry expenses 340 Motor vehicle at cost 9,000 Accounts receivable and accounts payable 1,160 2,100 Bank 1,500 Provision for depreciation on motor vehicle 1,200 Capital at 1 September 2014 19,700 Drawings 11,700 63,900 63,900