1 B Barnes is a dealer who has not kept proper books of account. At 31 October 2003 his state of affairs was as follows Cash 210 Bank balance 4,700 Fixtures 2,800 Stock 18,200 Debtors 26,600 Creditors...

1

B Barnes is a dealer who has not kept proper books of account. At 31 October 2003 his

state of affairs was as follows

Cash 210

Bank balance 4,700

Fixtures 2,800

Stock 18,200

Debtors 26,600

Creditors 12,700

Van (at valuation) 6,800

During the year to 31 October 2004 his drawings amounted to £32,200. Winnings from the Lottery

of £7,600 were put into the business. Extra fixtures were bought for £900.

At 31 October 2004 his assets and liabilities were: Cash £190; Bank overdraft £1,810; Stock

£23,900; Creditors for goods £9,100; Creditors for expenses £320; Fixtures to be depreciated £370;

Van to be valued at £5,440; Debtors £29,400; Prepaid expenses £460.

Draw up a statement showing the profit or loss made by Barnes for the year ending 31 October

2004.