The following were the balances extracted from the books of BB Arewa Ltd on 30^th September 2019;

	£
Bill Payable	2,350
Capital	19,000
Carriage inward	160
Cash at bank	2,600
Creditors	2,600
Debtors	3,600
Delivery Vehicle	2,600
Drawings	700
Electricity	500
Opening Stocks	1,600
Plant & Machinery	12,000
Purchase	2,000
Rent	450
Repairs	190
Salaries & wages	1,600
Sales	4,200
Training expenses	150

Closing stock was £1,600

Depreciation of the fixed assets on straight line; Plant & Machinery @ 10%, Delivery Vehicle @ 15%.

Required:

i.) Prepare the Income Statement for the year ended 30^th September 2020 (17marks: 1 for each account properly included and the correct calculations [e.g., gross profit, net profit/loss]).

ii.) Prepare balance sheet statement as of 30^th September 2020 (18 marks: 1 for each account properly included and the balance to be balanced)

Answer rating: 100% (QA)

i Preparation of income statement for the year ended September 30 2019 BB Arewa Ltd Income State... View the full answer