F. Harrison is in business as a trader. A trial balance taken out as at 31 January

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F. Harrison is in business as a trader. A trial balance taken out as at 31 January 20X3 was as follows:
F. Harrison is in business as a trader. A trial

The following information is to be taken into account:
1. Included in sales are goods on sale or return that cost £240 and which have been charged out with profit added at 20 per cent of sale price.
2. Outstanding amounts not entered in the books were: rent £36, sundry expenses £90.
3. Prepayments were: rates £60, insurance £10.
4. Inventories on hand on 31 January 20X3 were valued at £15,450.
5. Provision for doubtful debts is to be £340.
6. Depreciation is to be provided for as follows: fixtures and fittings 10 per cent per annum, motor vehicles 25 per cent per annum.
Required
Prepare a statement of profit and loss for the year ended 31 January 20X3, and draw up a statement of financial position as on that date.

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Related Book For  answer-question

Introduction To Financial Accounting

ISBN: 978-0077138448

7th edition

Authors: Anne Marie Ward, Andrew Thomas

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