In a retail shop owned by Daisy Hall, all transactions were correctly recorded in the Cash Book and posted strictly in compliance with the rules of double-entry accounting to appropriate ledger accounts. The balances in all the accounts, as at the year-end – 31.3.2010 – are listed.

(a) Set out these balances in the form of a Trial Balance, stating the debit balances in one column and credit balances in another and then checking whether the total of each column is identical to that of the other.

(b) Assuming that all goods bought for sale have been sold, identify the class to which each account belongs; and

(c) Prepare the Statement of income for the year ended 31 March 2010 and the Statement of financial position as at that date.

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Capital account Salaries account Furniture account Loan from Penny Hall Motor Vehicles account Telephone account Sales account Advertising account Staff welfare account Cash account Purchases account Rent account £50,000 £12,160 £24,500 £10,000 £36,000 £3,440 £269,600 £11,220 £3,230 £18,450 £208,600 £12,000