Saul is a trader and his trial balance at 31 May 2004 was as follows.

Further information 

1. Stock at 31 May 2004 cost $58 000. 

2. Depreciation is to be calculated as follows: freehold property at 4% per annum, straight line; plant and machinery at 15% per annum; motor vehicles at 30% per annum on the reducing balance. 

3. Included in trade debtors is a bad debt of $1800; the provision for doubtful debts is to be 5% of trade debtors. 

4. $400 was owing for heating and lighting, and $220 for stationery. The stock of stationery at 31 May 2004 had cost $450. 

5. Rent paid in advance was $2000; rent receivable was owing in the sum of $280. 

6. Saul had taken goods for his own use. The goods had cost $2400. No entries for this had been made in the books. 

Required 

(a) Prepare Saul's Trading and Profit and Loss Account for the year ended 31 May 2004. 

(b) Prepare the Balance Sheet at 31 May 2004.

Transcribed Image Text:

Account Freehold Property at cost Provision for Depreciation of Freehold Property Plant and Machinery at cost Provision for Depreciation of Plant and Machinery REGENER Motor Vehicles at cost rovision for Depreciation of Motor Vehicles Trade debtors Provision for Doubtful Debts Trade creditors Bank Sales Sales Returns Purchases Purchases Returns Wages Rent Payable Rent Receivable Heating and Lighting Telephone and Postage $ 180 000 Mange mou 97 000 41 000 34 600 11 374 6 670 BURU CAIR 410 890 137 652 10 000 4 720 3 217 $ 45 000 53 000 27 000 1 200 5 720 700 000 3 112 1 020