Reference no: EM131537744

Question: B. Letitslide is in business but does not keep proper books of account. In order to prepare his Trading and Profit & Loss Account for the Year ended 31st December, 1960 you are given the following information:

1st Jan. 1960 31st Dec. 1960
                                                                       £                        £

Stock on Hand                                                1,310                  1,623

Debtors                                                            268                     412

Creditors for Goods                                             712                     914

Creditors for Expenses                                         116                     103

In addition, you are able to prepare the following summary accounts for the year:

In addition, Mr. Letitslide says that he has taken goods for personal consumption and estimates that those goods cost £100.

In considering the debtors, Mr. Letitslide suggests that there is no hope of receiving an amount of £30 from one customer. There are other doubtful debts and a provision is to be made of 5 % of the debtors. Allowing depreciation on the Delivery Van of 20 % per annum, prepare the accounts as requested and a Balance Sheet as at 31st December, 1960