Exercise 2.2

Elm,s Trading and Profit & Loss Account for the year ended 37 March 20x7

and Balance Sheet at 3I March2OX7 were as follows'

Etm - Trading and Profit & Loss Accountended 3l Matcn' 2OX7

for the Year

c

65 000Sales

Cost of Sales

Opening stockPurchases

l,ess Closing stock

Gross profit

/ess Expenses'Wages

Rent, rates and insuranceHeat and lighrStationerl' and postageDepreciation

Net profit

Elrn - Balance Sheet

Fixed assetsFixtures and fittings at costl,ess Accum u lated depreciation

Current assetsStockDebtorsBank

Current [iabilitiesCreditorsNet current assets

Net assets

Capita,L accountBalanceb/dAdd: Net profit

/ess Drawings

VagesRent, rates and insurancePurchasesHeat and light

,S tatio ne-ny -and -p-os tage

B 400

3 5002 950

9552 250

at3l M:arcIl-zOXT

2 30029 100

3L 4002 150

29 250

35 t50

18 055

17 695

9 0004 500

4 5oo

5 735

717

25 23515 000

Prepayrnents

750

ro)

2 7504200I ZO>

540oy>

r0 235

Required:Prepare an amended Trading and Profit and Loss Account for the year ended31 March 20){J and Balance Sheet ar 3I March 20XJ , after providing for thefollowing accruals and prepayments.

Accruals600200375

BO \ "?V