Mrs. M. Botham is a sole trader, selling a variety of fashionable clothing materials. Her business year end is 31 December 2011.
You have been given the following trial balance for the year ended 31 December 2011 with all the relevant year-end adjustments already included.
(a) Prepare an income statement the business for the year ended 31 December 2011.
|
Mrs Botham trading as Fashionable Clothing Material
Trial balance as at 31 December 2011
|
|
|
Dr
£
|
Cr
£
|
|
Accruals
|
|
1,000
|
|
Bank
|
2,000
|
|
|
Capital
|
|
11,750
|
|
Closing inventory
|
15,250
|
15,250
|
|
Depreciation charge
|
3,450
|
|
|
Discounts allowed
|
3,300
|
|
|
Drawings
|
17,750
|
|
|
Rent and rates
Travelling expenses
Insurance
Telephone
|
11,250
8,210
2,750
650
|
|
|
Heating and lighting
Plant and machinery at cost
|
1,850
19,500
|
|
|
Plant and machinery accumulated depreciation
|
|
8,390
|
|
Opening inventory
|
16,070
|
|
|
Prepayments
|
1,450
|
|
|
Purchases
|
114,580
|
|
|
Purchases returns
Purchases ledger control account
|
|
440
12,330
|
|
Advertising
|
11,810
|
|
|
Sales
|
|
214,740
|
|
Sales returns
Sales ledger control account
|
600
16,750
|
|
|
VAT
|
|
1,720
|
|
Wages
|
18,400
|
|
|
|
265,620
|
265,620
|