The following Trial Balance was extracted from the books of a sole trader on July 31, 2013, the end of her financial year. Trial Balance as at July 31, 2013 Details/Accounts $ Buildings and machinery Provision for depreciation on buildings & machinery, August 1, 2012 Bad debt Cash at bank Stock, August 1, 2012 Salaries Carriage inwards Purchases Returns Provision for bad debt Drawings Stationery Cash in hand Motor vehicles Office furniture Debtors and creditors Capital Discounts Commission Interest Sales Insurance Notes: $ 10,000,000 150,000 6,000,000 8,000,000 6,000,000 300,000 20,100,000 200,000 500,000 250,000 600,000 8,000,000 1,500,000 7,500,000 450,000 1,000,000 480,000 71,030,000 4,000,000 100,000 250,000 4,000,000 16,350,000 380,000 300,000 450,000 45,200,000 71,030,000 (i) Depreciation is to be charged as follows: Motor vehicles 10% straight line; office furniture 5% on cost; buildings & machinery 10%, reducing balance. (ii) Stocks on July 31, 2013 were valued at $4,500,000. (iii) The provision for bad debt is to be adjusted to 1% of debtors. (iv) Interest receivable amounting to $80,000 had not been recorded in the account as at July 31, 2013. (v) $20,000 was still outstanding on July 2013 for insurance expenses. 5 Required: (a) Trading and Profit and Loss Account for the period ending July 31, 2013. (13 marks) (b) A Balance Sheet as at July 31, 2013. 

Answer rating: 100% (QA)

a Trading and Profit and Loss Account for the period ending July 31 2013 TRADING PROFIT AND LOSS ACC... View the full answer