Lee Crosby has just completed his first year of trading selling cookery equipment. He attempted to prepare a balance sheet from his trial balance before seeking expert help as he was having difficulty getting the balance sheet totals to agree. The trial balance included a suspense account balance of

£10,000. This amount has not been entered on the balance sheet.

Additional information at 31 March 2018 1 During the year cookery equipment purchased for resale that had cost £3,500 has been entered in error into the shop fittings account.
2 Lee believes the shop fittings will have an economic life of 5 years and have an estimated residual value of £2,000.
3 The property should be depreciated by 5% using the straight-line method.
4 Lee had withdrawn £75 in cash from the business for his own personal use. This transaction has not yet been accounted for.
5 A credit customer has ceased trading owing Lee £1,040 that will never be received.
6 The wages account has been overstated by £10,000.
7 A credit supplier has issued a credit note of £55 for goods that have been damaged and this has not been entered into the books of account.
Required Prepare a corrected balance sheet at 31 March 2018 taking into account the additional information in points 1–7.

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Balance sheet for Lee Crosby for the year ended 31 March 2018 Capital at 1 April 2017 Shop fittings Drawings Current liabilities Loan payable 2023 Trade receivables Accrual of expenses Cash at bank Current assets Property Trade payables Prepayment of expenses Closing inventories Cash in hand Profit for the year 52,000 3,740 160 2,140 108,000 4,220 225 58,040 112,445 136,175 38,000 71,201 56,405 190,971 31,517 155 52,423 84,095