Reference no: EM132599969
J. Wright, a sole trader, extracted the following trial balance from his books at the close of business on 31 March 2016:-
Purchases and sales 61,420 127,245
Inventory 1 April 2015 7,940
Capital 1 April 2015 25,200
Bank overdraft 2,490
Cash 140
Discounts 2,480 62
Returns inwards 3,486
Returns outwards 1,356
Carriage outwards 3,210
Rent and insurance 8,870
Allowance for doubtful debts 630
Fixtures and fittings 1,900
Van 5,600
Accounts receivable and accounts payable 12,418 11,400
Drawings 21,400
Wages and salaries 39,200
General office expenses 319
168,383 168,383
Notes:
(a) Inventory 31 March 2016 £6,805.
(b) Wages and salaries accrued at 31 March 2016 £3,500; Office expenses owing £16.
(c) Rent prepaid 31 March 2016 £600.
(d) Increase the allowance for doubtful debts by £110 to £740.
(e) Provide for depreciation as follows: Fixtures and fittings £190; Van £1,400.
Question 1: Prepare the statement of profit or loss for the year ending 31 March 2016 together with a statement of financial position as at that date.