MarmadukeMuffett once had a girlfriend who ran an antiques business in London'sKings Road. Ever since then, he has been hooked on the furniture trade and now runsMarmaduke'sMarvellous Mart, a furniture emporium in Riming-on-Sea specialising inantique and 'feature' furniture especially appealing to the tourists who frequent the resortin the summer months. He buys considerable stock from his cousin Albert's 'Spiderman'workshop - and indeed has invested £70,000 in Albert's company this year.
His bookkeeper has written up the books, extracted the trial balance and sent it togetherwith the additional information to George King FCCA, the accountant who acts forMarmaduke (as well as his cousin Albert) with a request to draw up the accounts quicklysince Marmaduke has made an appointment next week to see Roy Scot, his bankmanager, to review the overdraft limit.him out by preparing Marmaduke's profit and loss account for the year ended February28, 19X8 and his balance sheet on that day. George warns you that occasionallyMarmaduke's bookkeeper gets the trial balance a bit mixed up and to be careful aboutchecking it out.
George is, as usual, rushed off his feet, together with all his staff, and asks you to help
MARMADUKE'S MARVELLOUS MART: TRIAL BALANCE
at February 28, 19X8
Assets and Expenses
Liabilities, Capital and Income
Opening stock at 1/3/X7
Loans from directors - repayable 28/2/Y3
Equipment and furnishings (cost)
Accumulated depn on equipment at 1/3/X7
Motor vehicles (cost)
Accumulated depn on vehicles at 1/3/X7
Investment in Albert Muffett Limited
Interest paid to bank
Profit and loss account 1/3/X7
You are required to:
a. list the adjustments needed to correct the trial balance.
b. prepare the profit and loss account and balance sheet in appropriate format for publication