S. Trader carries on a merchandising business. The following balances have been extracted from his books on 30 September 20X9:

The following further information is to be taken into account:
1. Inventories on hand on 30 September 20X9 were valued at £12,972.
2. Provision is to be made for the following liabilities and accrued expenses as at 30 September 20X9: rent £450; lighting and heating £136; travellers’ commission and expenses £806; accountancy charges £252.
3. Allowance for irrecoverable debts is to be raised to 3 per cent of the closing trade receivable balance.
4. Office furniture and equipment is to be depreciated by 10 per cent on book value.
5. Mr Trader had removed inventory costing £112 for his own use during the year.

Required
a. Prepare a statement of performance for the year ended 30 September 20X9 grouping the various expenses under suitable headings; and

b. A statement of financial position as at that date.

Transcribed Image Text:

Capital-S. Trader, at 1 Oct 20X8 Office furniture and equipment Cash drawings - S. Trader Inventories on hand - 1 Oct 20X8 Purchases Sales revenue Rent Light and heat Insurance Salaries Stationery and printing Telephone and postage General expenses Travellers' commission and expenses Discounts allowed Discounts received Irrecoverable debts written off Trade receivables Trade payables Balance at bank to S. Trader's credit Petty cash in hand Allowance for irrecoverable debts £ 24,239 1,440 4,888 14,972 167,760 203,845 1,350 475 304 6,352 737 517 2,044 9,925 517 955 331 19,100 8,162 6,603 29 143