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How can we correct the attached Income statement & Balance sheet to ensure that the expense of £1200 is captured as Drawings and not as Travel expense as this amount was used by Anne for hotel and flight booking for her holiday and is not a business expense?

How can we correct the attached Income statement & Balance sheet to ensure that the expense of £1200 is captured as Drawings and not as Travel expense as this amount was used by Anne for hotel and flight booking for her holiday and is not a business expense?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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How can we correct the attached Income statement & Balance sheet to ensure that the expense of £1200 is captured as Drawings and not as Travel expense as this amount was used by Anne for hotel and flight booking for her holiday and is not a business expense?

Anne York is a sole trader who started the business of buying and selling furniture in Brighton on the Question: Income Statement and Balance Sheet prepared for Anne York for period ended 31 Oct 2021 are as below. The hotel and flight expenses she has incurred for a holiday has been captured as travel expense. How dow we edit the income statement and balance sheet to account for the the amount of £1200 which should be Drawings and not Travel expense? 1st of October 2021. She is going to prepare accounts to 31st of September 2021. She contributed to the business with £10,000 in the Bank, £4,800 cash, 45,000 flat and 12,000 Car. The transactions during the month are as follows: Income Statement Balance Sheet Assets Current Assets 2/10 Purchased furniture £5400 for sale on credit from Home Ltd Particulars Amount Sales Revenue Less: Cost of Goods Sold 4/10 She bought a computer for £800 and a printer £200 from a local shop in London and paid by £5,600 cheque. £5,150 Bank £9,230 Less: Ending Inventory Gross Profit Cash Account Receivable 5/10 Sold goods for £ 2800 and received the money via Bank account £320 £6,140 £770 £150 12/10 Paid in Cash £110 for repairing printer Operating Expenses Repair Expesnes Wages Expenses Rent Expenses Travel Expenses Total Operating Expenses Operating Income/Loss Inventory Total Current Assets £320 18/10 Part of furniture returned to Home Ltd £250 £110 £15,840 £820 Property & Equipment £850 Flat £45,000 Car £12,000 £1,200 £2,980 Computer £800 -£2,210 Printer £200 Other Income Laptop £1,700 £59,700 21/10 The owner received rent £800 for flat and deposited it to the bank account Total Assets Liabilities & Owner's Equity Current Liabilities Account Payable Owner's Equity Rent Revenue £800 £75,540 23/10 Sold goods to Rayan £2100; from this amount £1800 cash received immediately and the rest Net Loss -£1,410 remains on credit. 23/10 Sold goods of £700 to David and received cash £5,150 24/10 Bought a new Laptop for business use by issuing a cheque £1700 26/10 Paid the month's wages to the part-time shopkeeper by cheque £820 Capital £70,390 30/10 The owner rented an office place in a Business Park near the London on 1 October and paid Total Liabilities & Owner's Equity £75,540 rent by cheque £850 31/10 The owner has also paid £ 1200 from the business bank account to book a hotel and flight in Scotland for her holiday. 31/10 £150 Cash received from Rayan.
Transcribed Image Text:Anne York is a sole trader who started the business of buying and selling furniture in Brighton on the Question: Income Statement and Balance Sheet prepared for Anne York for period ended 31 Oct 2021 are as below. The hotel and flight expenses she has incurred for a holiday has been captured as travel expense. How dow we edit the income statement and balance sheet to account for the the amount of £1200 which should be Drawings and not Travel expense? 1st of October 2021. She is going to prepare accounts to 31st of September 2021. She contributed to the business with £10,000 in the Bank, £4,800 cash, 45,000 flat and 12,000 Car. The transactions during the month are as follows: Income Statement Balance Sheet Assets Current Assets 2/10 Purchased furniture £5400 for sale on credit from Home Ltd Particulars Amount Sales Revenue Less: Cost of Goods Sold 4/10 She bought a computer for £800 and a printer £200 from a local shop in London and paid by £5,600 cheque. £5,150 Bank £9,230 Less: Ending Inventory Gross Profit Cash Account Receivable 5/10 Sold goods for £ 2800 and received the money via Bank account £320 £6,140 £770 £150 12/10 Paid in Cash £110 for repairing printer Operating Expenses Repair Expesnes Wages Expenses Rent Expenses Travel Expenses Total Operating Expenses Operating Income/Loss Inventory Total Current Assets £320 18/10 Part of furniture returned to Home Ltd £250 £110 £15,840 £820 Property & Equipment £850 Flat £45,000 Car £12,000 £1,200 £2,980 Computer £800 -£2,210 Printer £200 Other Income Laptop £1,700 £59,700 21/10 The owner received rent £800 for flat and deposited it to the bank account Total Assets Liabilities & Owner's Equity Current Liabilities Account Payable Owner's Equity Rent Revenue £800 £75,540 23/10 Sold goods to Rayan £2100; from this amount £1800 cash received immediately and the rest Net Loss -£1,410 remains on credit. 23/10 Sold goods of £700 to David and received cash £5,150 24/10 Bought a new Laptop for business use by issuing a cheque £1700 26/10 Paid the month's wages to the part-time shopkeeper by cheque £820 Capital £70,390 30/10 The owner rented an office place in a Business Park near the London on 1 October and paid Total Liabilities & Owner's Equity £75,540 rent by cheque £850 31/10 The owner has also paid £ 1200 from the business bank account to book a hotel and flight in Scotland for her holiday. 31/10 £150 Cash received from Rayan.
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