The following adjustments need to be made in the accounts of Ricksu at the year-end 31.03.03.
(a) Bad debts of £3,000 are to be written off against total trade receivables balance of £27,000. The provision for bad debts is to stand at 5% of trade receivables after bad debts have been written off. The provision currently stands in the books at £1,300.
(b) The following information relates to expenses:

(c) During the year, vehicles with a NBV of £6,000, cost £14,000 were sold for £5,800. This sale had not been accounted for in the books except for the cash proceeds that were debited to the cash account and credited to a sale of vehicles account.
(d) No charge for provision for depreciation has been made in the accounts for the current year. Information in respect of non-current assets is as follows:

All assets are to be depreciated on a straight-line basis.
Ricksu€™s profit for the period ended 31.3.03 before the above adjustments was £78,900.

Required:
Show the entries in the ledger accounts to make the above adjustments; recalculate the profit for the period and show relevant extracts from the statement of financial position.

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Column 2 Column 1 Column 3 Paid in advance (already included in Column 2) To be accrued (not yet included in Column 2) Total paid during year and transferred to Income Statement Insurance 550 90 Rent 1,500 10,500 1,650 250 Wages and salaries Heat and lighting 300 420 Estimated useful life Provision for dep. as at 1.4.02 Cost Residual value years Buildings Vehicles (before accounting for sale 350,000 50 200,000 30,000 70,000 36,000 4 Equipment 10,000 2,000 5,500