Doyle runs a business as a plumber and supplier of spare parts to contractors. The trial balance, and additional information, of the business as on 30 September 2013 is provided n Appendix 1.
Required:
a) Using ONLY the data provided in the initial Trial Balance, prepare an income statement for the year ended 30 September and a balance sheet as at that date for Doyle.
b) In a second set of accounts, update the income statement and balance sheet showing the effect of the further information. Workings must be clearly noted in the revised accounts and using supporting notes/calculations.
c) Discuss, with reasons, which accounting concepts and conventions you have used in the preparation of the financial statements. Your discussion should be 600 words. Each item requires a clear reference.