The following trial balance has been extracted from the ledger of Mr Yousef, a sole trader.

The following additional information as at 31 May 20X6 is available:

(a) Rent is accrued by £210.

(b) Rates have been prepaid by £880.

(c) £2,211 of carriage represents carriage inwards on purchases.

(d) Equipment is to be depreciated at 15% per annum using the straight line method.

(e) The provision for doubtful debts to be increased by £40.

(f ) Stock at the close of business has been valued at £13,551.

Required:

Prepare a trading and profit and loss account for the year ended 31 May 20X6 and a balance sheet as at that date.

Transcribed Image Text:

Sales Purchases Carriage Drawings Rent, rates and insurance Postage and stationery Advertising Salaries and wages Bad debts Trial Balance as at 31 May 20X6 Dr £ 82,350 5,144 7,800 6,622 3,001 1,330 26,420 877 Cr £ 138,078