Prepare a trading and profit and loss account for the year ended 31st/12/2018 and a balance sheet

 The following accounting information was extracted from the books of ABC Co. ltd for the year ended 31/12/2018

The following additional information as at 31 December 2018 is available:

  1. Rent is accrued by $6,200.
  2. Rates have been prepaid by $17,600.
  3. $44,220 of carriage represents carriage inwards on purchases.
  4. Equipment is to be depreciated at 15% per annum using the straight line method.
  5. The provision for doubtful debts to be increased by$800.
  6. Closing inventory was $271,020 at the end of the year.

Required:

Prepare a trading and profit and loss account for the year ended 31st/12/2018 and a balance sheet as at that date.

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