1
On 1 May 2008 Jenny Barnes, who is a retailer, had the following balances in her books:
Premises £70,000; Equipment £8,200; Vehicles £5,100; Stock £9,500; Trade debtors £150. Jenny does
not keep proper books of account, but bank statements covering the 12 months from 1 May 2008
to 30 April 2009 were obtained from the bank and summarised as follows:
£
Money paid into bank:
Extra capital 8,000
Shop takings 96,500
Received from debtors 1,400
Payments made by cheque:
Paid for stock purchased 70,500
Purchase of delivery van 6,200
Vehicle running expenses 1,020
Lighting and heating 940
Sales assistants’ wages 5,260
Miscellaneous expenses 962
It has been discovered that, in the year ending 30 April 2009, the owner had paid into the bank all
shop takings apart from cash used to pay (i) £408 miscellaneous expenses and (ii) £500 per month
drawings.
At 30 April 2009:
£7,600 was owing to suppliers for stock bought on credit.
The amount owed by trade debtors is to be treated as a bad debt. Assume that there had been
no sales on credit during the year.
Stock was valued at £13,620.
Depreciation for the year was calculated at £720 (equipment) and £1,000 (vehicles).
You are asked to prepare trading and profit and loss accounts for the year ending 30 April 2009.
(Show all necessary workings separately.)
(Edexcel Foundation, London Examinations: GCSE)