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1. • CommentAuthoradityajwl
   • CommentTimeOct 11th 2008

    
   The following trial balance was extracted from the ledger of Stephen Chee, a sole trader, as at 31 May 20X1-the end of his financial year.
   STEPHEN CHEE
   TRIAL BALANCE AS AT 31 MAY 20X1
   Dr Cr
   
   Property, at cost 120000
   Equipment, at cost 80000
   Provisions for depreciation (as at 1 June 20X0 )
   - on property 20,000
   - on equipment 38,000
   Purchases 250,000
   Sales 402,200
   Stock, as at 1 June 20X0 50,000
   Discounts allowed 18,000
   Discounts received 4,800
   Returns out 15,000
   Wages and salaries 58,800
   Bad debts 4,600
   Loan interest 5,100
   Other operating expenses 17,700
   Trade Creditors 36,000
   Trade Debtors 38,000
   Cash in hand 300
   Bank 1,300
   Drawings 24,000
   Provision for bad debts 500
   17% long term loan 30,000
   Capital, as at 1 June 20X0 121,300
   _______________________
   667,800 667,800 _______________________
   The following additional information as at 31 May 20X1 is available.
   
   (a) Stock as at the close of business has been valued at cost at £42,000
   (b) Wages and salaries need to be accrued by £800.
   (c) Other operating expenses are prepaid by £300.
   (d) The provisions for bad debts is to be adjusted so that is 2% of trade debtors.
   (e) Depreciation for the year ended 31 May 20X1 has still to be provided for as follows.
   
   Property: 1.5% per annum using the straight line method; and
   Equipment: 25% per annum using the diminishing balance method.
   
   Required:
   
   Prepare Stephen Chee’s trading and profit and loss account for the year ended 31 May 20X1 and his balance sheet as at that date.
2. • CommentAuthoradityajwl
   • CommentTimeOct 11th 2008

    
   plz help me sir....
   to solve this question
3. • CommentAuthormfargen
   • CommentTimeOct 11th 2008 edited

    
   What is the category "Drawings?" I think USA term for that is dividends.
   
   I think you can complete this assignment yourself with the following steps:
   
   1. first calculate the adjustment you need for depreciation since you have to use formulae to do this.
   
   2. Make the adjustments, using a 10 column spread sheet
   
   3. This will give you the adjusted trial balance report
   
   4. From the adjusted trial balance report you can calculate the income statement. Just use the format that your school requires and make the appropriate calculations. For example, net sales is sales, less sales discounts and sales returns and allowances. Subtract cost of goods sold to get the gross profit. Your conventions will use slightly different terms for these.
   
   Good luck.