The following is Ash's trial balance as at 31 March 2011:

Additional information:
1 Stock at 31 March 2011: £15 000.
2 At 31 March 2011 there was a specific bad debt of £6000. This was to be written off.
3 Furniture is to be depreciated at a rate of 10 per cent per annum on cost.
4 At 31 March 2011 Ash owes the electricity board £600, and £100 had been paid in advance for insurance.
5 The provision for bad and doubtful debts is to be set at 10 per cent of trade debtors as at the end of the year.

Required:
Prepare Ash's trading and profit and loss account for the year to 31 March 2011 and a balance sheet as at thatdate.

Transcribed Image Text:

Bank 4.000 20 500 3 600 Depreciation (at 1 April 2010): furniture Drawings Electricity Furniture, at cost Insurance Miscellaneous expenses Provision for bad and doubtful debts 10 000 2 000 9 000 1 500 65 800 (at 1 April 2010) Purchases 80 000 150 000 Stock (at 1 April 2010) Trade creditors Trade debtors 10 000 21 000 199 300 20 000 199 300