D. Staunton is a sole proprietor and you are given the following information relating to her business:

\section*{Additional information:}
1 The inventory was counted at 30 September 2024 and was valued at \(£ 26,424\).
2 Depreciation is to be applied at the following rates:

3 The amount shown for business rates on the trial balance includes a payment of \(£ 11,760\), which represents twelve months' business rates to 31 January 2025.
4 Utilities charges incurred for which no invoices have yet been received amount to a total of \(£ 4,167\).
5 Based on a careful analysis of the business's debt collection experience, the allowance for doubtful debts is to be set at \(4 \%\) of trade receivables.
\section*{Required:}
Prepare the following financial statements for D. Staunton's business:

(a) An income statement for the year ended 30 September 2024.

(b) A balance sheet as at 30 September 2024.

Transcribed Image Text:

Trial balance as at 30 September 2024 Trade receivables Business rates Trade payables Returns outwards Drawings Inventory as at 1 October 2023 Utilities Wages & salaries Sales Equipment: Delivery vans: Equipment: Delivery vans: Purchases at cost at cost accumulated depreciation at 1 Oct 2023 accumulated depreciation at 1 Oct 2023 Bank Bad debts expense Allowance for doubtful debts at 1 October 2023 Capital Dr 73,200 19,978 34,792 25,967 18,603 136,163 188,760 92,220 307,847 1,337 13,192 912,059 Cr 4 62,165 2,064 592,013 74,100 60,720 2,240 118,757 912,059