The trial balance for a small business at 31 August 20X8 is as follows: £ £ Stock 1 September 20X7 8,200 Purchases and Sales 26,000 40,900 Rent 4,400 Business rates 1,600 Sundry expenses 340 Motor vehicle at cost 9,000 Debtors and creditors 1,160 2,100 Bank 1,500 Provision for depreciation on motor vehicle 1,200 Capital at 1 September 20X7 19,700 Drawings 11,700 63,900 63,900 At 31 August 20X8 there was: l Stock valued at cost prices £9,100 l Accrued rent of £400 l Prepaid business rates of £300 l The motor vehicle is to be depreciated at 20% of cost Required: 1 The adjustments to the ledger accounts for rent and business rates for the year to 31 August 20X8. 2 A trading profit and loss account for the year ending 31 August 20X8, together with a balance sheet as at that date.
The
£ £
Stock 1 September 20X7 8,200
Purchases and Sales 26,000 40,900
Rent 4,400
Business rates 1,600
Sundry expenses 340
Motor vehicle at cost 9,000
Debtors and creditors 1,160 2,100
Bank 1,500
Provision for
Capital at 1 September 20X7 19,700
Drawings 11,700
63,900 63,900
At 31 August 20X8 there was:
l Stock valued at cost prices £9,100
l Accrued rent of £400
l Prepaid business rates of £300
l The motor vehicle is to be depreciated at 20% of cost
Required:
1 The adjustments to the ledger accounts for rent and business rates for the year to 31 August
20X8.
2 A trading
sheet as at that date.
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