Bernard Ruegel has drawn up a trial balance which is presented below. You have the following extra
Question:
Bernard Ruegel has drawn up a trial balance which is presented below.
You have the following extra information:
1. Closing inventory is £13,206.
2. There are the following amounts owing: advertising £325, telephone £125, carriage outwards £20, general expenses £37, wages and salaries £560.
3. The following amounts are prepaid: travelling expenses £288, electricity £76, insurance £250.
4. It is business policy to treat 10% of total trade receivables as doubtful.
5. There is a bad debt of £600 to be provided in addition to the provision.
6. It has been decided to write down the property, plant and equipment to the following net book value amounts as at 30 September 2012.
Required:
Prepare, taking the necessary adjustments into account, the income statement for the year ended 30 September 2012 and the statement of financial position as at 30 September 2012.
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