Walker runs a business as a plumber. The trial balance, and additional information, of the business as on 31 December 2011 was as follows:
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 Joe.
b) Update the income statement and balance sheet showing the effect of the further information. Your workings must be clearly presented in the revised accounts and 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 concept requires a clear reference.