On 11 January 2012 Betty assumed duties as accountant in Tongdean, a retail shop. The shop’s owner provided her with the following information:

(i) The shop’s assets and liabilities are listed.

(ii) During the year ended 31 December 2011:

Purchases were £486,200

Rent is agreed at £3,000 per month

£72,000 was paid as salary

£16,400 was paid as other expenses

Proprietor’s drawings were £200 per week

Depreciation written off was £32,000

Non-current assets, written down to £60,000, were sold for £48,000.

(iii) As at 31 December 2011 salary (£8,000) and other expenses (£3,000) remain unpaid, while one month’s rent had been prepaid.

Required: 

Prepare the financial statements for the year ended 31 December 2011.

Transcribed Image Text:

As at 31 December 2010 Inventory at cost Trade receivables Cash and bank balance Trade payables 4 2011 4 Non-current assets at wdv 240,000 284,000 112,400 138,200 136,800 164,600 12,600 15,400 62,500 77,800