Stated below is a list of account balances extracted from the books of a trader on the last day of his accounting period.

Required:

(a) Set out the account balances in the form of a Trial Balance and identify the class of each account (assuming that all goods purchased have been sold).

(b) Prepare the Statement of income for the year ended 30 June 2010 and set out the Statement of financial position as at 30 June 2010, assuming that there are no unsold goods or expenses remaining unpaid and ignoring the need to depreciate non-current assets.

Transcribed Image Text:

List of balances as at 30 June 2010 Cash a/c Capital a/c Furniture a/c Purchases a/c Sales a/c Loan from Jim a/c Advertising a/c Stationery a/c Staff welfare a/c Office equipment a/c Telephone a/c Salaries a/c Postage a/c £ 8,476 5,000 330 8,400 12,600 1,200 355 55 40 300 49 780 15 Trial Balance as at 30 June 2010 Debit Cash a/c Capital a/c Furniture a/c Purchases a/c Sales a/c Jim's Loan a/c Advertising a/c Stationery a/c Staff welfare a/c Office equipment a/c Telephone a/c Salaries a/c Postage a/c Credit Class of account