The following trial balance has been extracted from the balances relating to the accounting books of...

  

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The following trial balance has been extracted from the balances relating to the accounting books of Bloom, a small shop, at the end of their accounting year on the 30 April 2020. Bloom's Trial balance for the year ending 30th April 2020 Capital and drawings Sales and purchases Return inwards and outwards Carriage inwards Carriage outwards Commission allowed and received Salaries health insurance Machinery at cost Machinery-accumulated depreciation at 1 May 2019 Fixtures and fittings at cost Fixtures and fittings-accumulated depreciation at 1 May 2019 Rent paid and received Delivery costs Electricity Insurance Inventory as at 1 May 2019 Legal fees Telephone Accounts receivable and payable Provision for doubtful debts at 1 May 2019 Cash Bank account Bank Loan Total Dr £ 67,000 54,000 1.233 2,000 6,543 700 67,000 500 80,000 142,732 5,020 4,220 1,203 670 12,300 5,400 4,300 65,232 30,000 20,000 Cr £ (40 marks) 250,030 164,472 504 12,000 20,000 24,000 4,322 50,422 4,003 40,300 570,053 570,053 Notes: 1 The owner has provided the company with £5000 cash. 2 The health insurance was owner's private insurance. 3 The machinery is to be depreciated over 7 years, using the straight-line method, it's expected to be sold for £10,000 at the end of its life. 4 Bad debts at a value of 4500 were realised but not accounted for 5 Due to the recent economic event it was concluded that the doubtful debts provision has to be changed to 20% 6 £2000 of the legal fees relate to the next period's expenditure 7 An invoice at a value of £1000, for the current period's electricity, was received but will be paid for next period 8 Fixtures and fittings are to be depreciated at 8% per annum using the reducing balance method. 9 The inventory at the end of the year 30th April 2020 was valued at £3400 Required: You are required to produce, both, the income statement and the statement of financial position for Bloom for the year ending 30th April 2020 The following trial balance has been extracted from the balances relating to the accounting books of Bloom, a small shop, at the end of their accounting year on the 30 April 2020. Bloom's Trial balance for the year ending 30th April 2020 Capital and drawings Sales and purchases Return inwards and outwards Carriage inwards Carriage outwards Commission allowed and received Salaries health insurance Machinery at cost Machinery-accumulated depreciation at 1 May 2019 Fixtures and fittings at cost Fixtures and fittings-accumulated depreciation at 1 May 2019 Rent paid and received Delivery costs Electricity Insurance Inventory as at 1 May 2019 Legal fees Telephone Accounts receivable and payable Provision for doubtful debts at 1 May 2019 Cash Bank account Bank Loan Total Dr £ 67,000 54,000 1.233 2,000 6,543 700 67,000 500 80,000 142,732 5,020 4,220 1,203 670 12,300 5,400 4,300 65,232 30,000 20,000 Cr £ (40 marks) 250,030 164,472 504 12,000 20,000 24,000 4,322 50,422 4,003 40,300 570,053 570,053 Notes: 1 The owner has provided the company with £5000 cash. 2 The health insurance was owner's private insurance. 3 The machinery is to be depreciated over 7 years, using the straight-line method, it's expected to be sold for £10,000 at the end of its life. 4 Bad debts at a value of 4500 were realised but not accounted for 5 Due to the recent economic event it was concluded that the doubtful debts provision has to be changed to 20% 6 £2000 of the legal fees relate to the next period's expenditure 7 An invoice at a value of £1000, for the current period's electricity, was received but will be paid for next period 8 Fixtures and fittings are to be depreciated at 8% per annum using the reducing balance method. 9 The inventory at the end of the year 30th April 2020 was valued at £3400 Required: You are required to produce, both, the income statement and the statement of financial position for Bloom for the year ending 30th April 2020

Answer rating: 100% (QA)

b Particulars Opening Stock Purchases Less Return outward Carriage Inward Gross Profit cd Carriage O... View the full answer