The following trial balance was extracted from the books of R traders at the close of business on 28 February 20X7. Dr Cr Purchases and sales 92,800 157,165 Cash at bank 4,100 Cash in hand 324 Capital account 1 March 20X6 11,400 Drawings 17,100 Office furniture 2,900 Rent 3,400 Wages and salaries 31,400 Discounts 820 160 Debtors and creditors 12,316 5,245 Stock 1 March 20X6 4,120 Provision for doubtful debts 1 March 20X6 405 Delivery van 3,750 Van running costs 615 Bad debts written off 730 174,375 174,375 Notes: (a) Stock 28 February 20X7 £2,400. (b) Wages and salaries accrued at 28 February 20X7 £340. (c) Van running costs owing at 28 February 20X7 £72. (d) Increase the provision for doubtful debts by £97. (e) Provide for depreciation as follows: Office furniture £380; Delivery van 10% on cost. Required: prepare the income statement for the year ending 28 February 20X7
The following
Dr Cr
Purchases and sales 92,800 157,165
Cash at bank 4,100
Cash in hand 324
Capital account 1 March 20X6 11,400 Drawings 17,100
Office furniture 2,900
Rent 3,400
Wages and salaries 31,400
Discounts 820 160
Debtors and creditors 12,316 5,245
Stock 1 March 20X6 4,120
Provision for doubtful debts 1 March 20X6 405
Delivery van 3,750
Van running costs 615
174,375 174,375
Notes:
(a) Stock 28 February 20X7 £2,400.
(b) Wages and salaries accrued at 28 February 20X7 £340.
(c) Van running costs owing at 28 February 20X7 £72.
(d) Increase the provision for doubtful debts by £97.
(e) Provide for
Required: prepare the income statement for the year ending 28 February 20X7
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