Mr. Hollywood has been trading for some
years as a retail trader. Given below are the ledger balances as at
30 June 20X7, the end of his most recent financial year.
$
Capital
83,887
Sales
259,870
Trade creditors
19,840
Returns out
13,407
Provision for doubtful debts
512
Discount allowed
2,306
Discount received
1,750
Purchases
135,680
Returns inwards
5,624
Carriage outwards
4,562
Drawings
18,440
Carriage inwards
11,830
Rent, rates and insurance
25,973
Heating and lighting
11,010
Postage, stationery &telephone
2,410
Advertising
5,980
Salaries & wages
38,521
Bad debt
2,008
Cash in hand
534
Cash at bank
4,440
Stock as at 1 May 20X6
15,654
Trade debtors
24,500
Fixtures & Fittings- at cost
120,740
Provision for depreciation on fixtures& fittings-30 April
20X7
63,020
Depreciation
12,074
You are given the following additional information as at
30 April 20X7.
(a) Stock at the close of business was valued at $ 17,750
(b) Insurance has been prepaid by $ 1,120
© Heating and lighting is accrued by $ 1,360
(d) Rates have been prepaid by $ 5,435
(e) The provision for doubtful debts is to be adjusted so that
it is 3% of trade debtors
Required:
Prepare Mr. Hollywood’s statement of profit or loss for
the year ended 30 April 20X8 and a statement of financial
position as at that date