Kirsty, a sole trader, prepared the following trial balance at 30 April 2011
|
$
|
|
$
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Rent
|
4 000
|
|
|
General expenses
|
6 000
|
|
|
Insurance
|
3 300
|
|
|
Salaries
|
14 000
|
|
|
Electricity
|
2 000
|
|
|
Capital
|
|
|
44 000
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Motor expenses
|
4 900
|
|
|
Bad debts
|
200
|
|
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Drawings
|
6 000
|
|
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Trade receivables
|
6 200
|
|
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Trade payables
|
|
|
3 800
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Cash and cash equivalents
|
2 600
|
|
|
Inventory
|
3 600
|
|
|
10% Loan
|
|
|
15 000
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Loan interest
|
1 250
|
|
|
Carriage outwards
|
700
|
|
|
Commission received
|
|
|
730
|
Ordinary goods purchased
|
56 000
|
|
|
Revenue
|
|
|
108 000
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Purchases returns
|
|
|
2 500
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Sales returns
|
4 800
|
|
|
Discounts allowed
|
600
|
|
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Discounts received
|
|
|
400
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Provision for doubtful debts
|
|
|
520
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Equipment
|
48 000
|
|
|
Provision for depreciation of equipment
|
|
|
14 400
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Motor vehicles
|
36 000
|
|
|
Provision for depreciation of motor vehicles
|
|
|
10 800
|
|
200 150
|
|
200 150
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The following information is also available:
1 The closing inventory at 30 April 2011 was valued at $4200.
2 Included in the general expenses is an item of equipment purchased during the year for $1200. This item has not yet been included in the equipment account.
3 A cheque for $800 received from a credit customer has not yet been entered in the accounts.
4 At 30 April 2011:
loan interest owing amounted to $250 electricity owing was $380
insurance was prepaid by $460
5 During the year Kirsty had withdrawn, for her personal use, goods costing $1800. This has not been recorded in the accounts.
6 Commission receivable of $150 was owing to Kirsty at 30 April 2011.
7 The provision for doubtful debts is to be provided for a specific debt of $200, plus 2% of the remaining debtors.
8 One half of the 10% loan is repayable during the year ending 30 April 2012, and the balance is repayable after that date.
9 Depreciation is to be provided as follows: Equipment 10% per annum on cost.
A full year’s depreciation is provided on all equipment held at 30 April 2011, regardless of the date of purchase.
Motor vehicles 25% by the reducing (diminishing) balance method. There were no additions or disposals during the year.
REQUIRED
Prepare the income statement (trading and profit and loss account) for Kirsty for the year ended 30 April 2011