Chris Day, a retailer, extracted the year-end Trial Balance as shown. He informs you that

(a) All expenses have been fully paid.

(b) Included within other expenses is an amount of £11,400 paid for carriage inwards.

(c) Although the goods have been received, the purchase invoice for £22,500 was received and entered in the Purchases Day Book only after the Trial Balance had been prepared.

(d) The cost of inventory, as at 31 December 2010, including goods referred to in (c) above, was £242,600.

(e) Goods costing £450 removed by Chris for his personal use have not been accounted for.

Required: 

Prepare the Statement of income for the year ended 31 December 2010 and the Statement of financial position as at that date. Ignore depreciation.

Transcribed Image Text:

Trial Balance as at 31 December 2010 Non-current assets Sales Drawings Inventory - 31.12.2009 Trade receivables Trade payables Staff salary Other expenses Cash and bank Purchases Capital £ 180,000 18,000 146,800 98,500 24,800 29,400 11,700 418,200 £ 563,200 - 64,200 300,000 927,400 927,400