Devram extracted a trial balance at 31 December 2003 from his books after he had prepared his Trading Account for the year ended on that date. It was as follows.

Further information 

1. At 31 December 2003, rent had been prepaid in the sum of $300. 

2. The following amounts were owing at 31 December 2003: electricity $242; stationery $84; motor expenses $160. 

3. The long-term loan was made to the business on 1 January 2003. Interest at the rate of 10% per annum is payable on the loan. 

4. The stock of unused stationery on hand at 31 December 2003 was valued at cost: $100. 

Required 

(a) Prepare Devram's Profit and Loss Account for the year ended 31 December 2003. 

(b) Prepare the Balance Sheet at 31 December 2003.

Transcribed Image Text:

Fixed assets Stock at 31 December 2003 Trade debtors Trade creditors Bank Long-term Loan Gross profit Rent Electricity Stationery Motor Expenses Interest on Loan Drawings Capital $ 40 000 7 000 1 600 2 524 2 600 926 405 725 500 5 120 61 400 $ 1 400 10 000 30 000 20 000 61 400