Jack Simms provides the following information: Additional information at 30 September 20*8 Stock was valued at 27,492. Wages
Jack Simms provides the following information:
Additional information at 30 September 20*8
■ Stock was valued at £27,492.
■ Wages owing amounted to £853.
■ Rates paid in advance £1,270.
■ Jack had withdrawn goods from the business for personal use amounting to £2,500.
■ Commission receivable outstanding amounted to £180. This will be paid to Jack in December.
■ Provision for doubtful debts is to be maintained at 2.5% of debtors outstanding at the year-end.
■ Depreciation is to be provided for on fixed assets at the following rates:
– Premises 1% per annum using the straight line method
– Equipment 10% per annum using the straight line method
– Vehicles 40% using the reducing balance method.
a) Prepare a trading and profit and loss account for the year ended 30 September 20*8.
b) Prepare a balance sheet at 30 September 20*8.
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