F Lee started in business on 1 January 20X2 with 35,000 in a bank account. Unfortunately he did not keep
F Lee started in business on 1 January 20X2 with £35,000 in a bank account. Unfortunately he did not keep proper books of account.
He is forced to submit a calculation of profit for the year ended 31 December 20X5 to the Inspector of Taxes. He ascertains that at 31 December 20X2 he had stock valued at cost £6,200, a van which had cost £6,400 during the year and which had depreciated during the year by £1,600, debtors of £15,200, expenses prepaid of £310, a bank balance of £33,490, a cash balance £270, trade creditors £7,100, and expenses owing £640.
His drawings were: cash £400 per week for 50 weeks, cheque payments £870.
Draw up statements to show the profit or loss for the year.
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