1
A Bell has kept records of his business transactions in a single entry form, but he did not
realise that he had to record cash drawings. His bank account for the year 2008 is as follows:
£ £
Balance 1.1.2008 920 Cash withdrawn from bank 12,600
Receipts from debtors 94,200 Trade creditors 63,400
Loan from F Tung 2,500 Rent 3,200
Insurance 1,900
Drawings 11,400
Sundry expenses 820
Balance 31.12.2008 4,300
97,620 97,620
Records of cash paid were: Sundry expenses £180; Trade creditors £1,310. Cash sales amounted to
£1,540.
The following information is also available:
31.12.2007 31.12.2008
£ £
Cash in hand 194 272
Trade creditors 7,300 8,100
Debtors 9,200 11,400
Rent owing – 360
Insurance paid in advance 340 400
Van (at valuation) 5,500 4,600
Stock 24,200 27,100
You are to draw up a trading and profit and loss account for the year ending 31 December 2008,
and a balance sheet as at that date. Show all of your workings.