Reference no: EM131106331
The following trial balance has been extracted from the ledger of Herbert Howell, a sole trader, as at 31 May 20X9, the end of his most recent financial year.
Herbert Howell
Trial Balance As At 31 May 20x9
Dr
Cr
£
£
Property at cost
90,000
Equipment at cost
57,500
Provision for depreciation (as at 1 June 20X8)
Property
12,500
Equipment
32,500
Stock as at 1 June 20X8
27,400
Purchases
259,600
Sales
405,000
Discounts allowed
3,370
Discounts received
4,420
Wages and salaries
52,360
Bad debts
1,720
Loan interest
1,560
Carriage out
5,310
Other operating expenses
38,800
Trade debtors
46,200
Trade creditors
33,600
Provision for bad debts
280
Cash on hand
151
Bank overdraft
14,500
Drawings
28,930
13% loan
12,000
Capital, as at 1 June 20X8
______
98,101
612,901
612,901
The following additional information as at 31 May 20X9 is available:
(a) Stock as at the close of business was valued at £25,900.
(b) Depreciation for the year ended 31 May 20X9 has yet to be provided as follows:
Property - 1% using the straight-line method
Equipment - 15% using the straight-line method
(c) Wages and salaries are accrued by £140.
(d) Other operating expenses include certain expenses prepaid by £500. Other expenses included under this heading are accrued by £200.
(e) The provision for bad debts is to be adjusted so that it is 0.5% of trade debtors as at 31 May 20X9.
(f) Purchases include goods valued at £1,040, which were withdrawn by Mr Howell for his own personal use.
Required:
Prepare Mr. Howell's trading and profit and loss account for the year ended 31 May 20X9 and his balance sheet as at 31 May 20X9.
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