Since submitting her last Statement of financial position to the Tax Department, Stella Norris has lost the services of her accountant. From particulars in her own diary and by summarising her bank statements she was able to identify the payments made in 2011 as follows:

She admits that she takes £200 per week from the till for personal expenses. Her policy is to depreciate tangible non-current assets, including the new vehicle, at 20% p.a. on cost. Listed on the left are her current assets and liabilities.

Required: Prepare:

(a) A summarised two-column Cash Book recording the transactions in 2011, and

(b) The financial statements for the year 2011.

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Statement of financial position as at 31 December 2010 Tangible assets Accumulated depreciation Inventory Receivables Bank balance Cash in hand Payables Capital Inventory Receivables Assets/liabilities as 31.12.2011 Bank balance Cash in hand Payables £ 180,000 (72,000) 108,000 112,000 21,400 12,800 300 (32,500) 222,000 £142,800 £48,400 £18,500 £400 £49,800