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Question: Eric Stupher was trading as a furniture manufacturer and he submits to you the following information relating to the year ended 30th September, 1961.
Mr. Stupher pays his manager a commission of 5% of the trading profits after charging such commission. Depreciation is to be provided on assets as follows:
Plant and Machinery 10 %
Fixtures and Fittings 5 %
Motor Vehicles 20%
Included in the debtors is a debt for £175 which Mr. Stupher considers doubtful. Durmg the year Mr. Stupher had personally purchased a new motor vehicle for use in the business for £1,200 and had received an allowance on this purchase for the old vehicle of £500. From the foregoing information you are required to prepare a Balance Sheet as at 30th September, 1961 and Trading and Profit & Loss Accounts for the year ended on that date. Calculations may be made to the nearest £.
Re-printed by courtesy of the Association of Certified Accountants.
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