Leonardo Da Vinci, who sells computers, has extracted the following balances from the accounts.

You have the following additional information.

1. Closing inventory of computers as at 30 September 2012 is £7,000.

2. Da Vinci owes £175 for the telephone and £1,200 for electricity.

3. The prepayments are £25 for insurance and £250 for rent.

Required:

Prepare Da Vinci’s income statement for the year ended 30 September 2012 and a statement of financial position as at 30 September 2012.

Transcribed Image Text:

L. Da Vinci Trial Balance as at 30 September 2012 Debit Credit Revenue 105,000 Sales returns 8,000 Purchases 70,000 Purchases returns 1,800 Opening inventory of computers 6,500 Drawings 8,500 Trade receivables 12,000 Trade payables 13,000 Cash at bank 1,800 Long-term loan 6,600 Discounts allowed 300 Carriage inwards 250 Business premises 18,000 Motor van 7,500 Computer 1,500 Wages 32,500 Electricity 825 Telephone 325 Insurance 225 Rent 1,250 Business rates 1,000 Equity 44,075 170,475 170,475