1:49 64% ACCOUNTING ASSIGNMENT-1 YEARS The following Trial Balance was extracted from the books of Mildred Underwood, s trader, at 31 December, 1988. S Laan repayable 1995 from P. James 10,000 Capital 19,895 Freehold land and building 22,000 Furniture and Fittings Motor vehicles 6,340 Purchases Sales 8,800 46,990 76,649 Rent receivable 360 Drawings 3,230 Motor vehicle expense 396 Stock in trade, 1 January, 1988 4,988 General expenses 827 Commission receivable 422 Rent and rates 1,162 Interest on loan 1,000 1,670 Advertising Wages and salaries 7,480 Debtors 7.921 Creditors 6,933 Licences and Taxes 700 Bank 2,540 Cash 100 Returns Inwards 1,200 Carriage Inwards 500 Carriage Outwerds 975 Telephone expenses Lighting and heating 1,140 880 Returns Outwards 1,500 118,299 118,299 The following are to be taken into account: Stock at 31 December 1988, $5,249. 2. 3. A private telephone bill for $240 was included in the business telephone bill On 1 January, 1988, Underwood purchased a motor van for the business for $2,000 and furniture for the business costing $200. He paid for both the motor van and the furniture with cheques drawn on his private bank account. Goods taken by the owner for personal use $250. Took a motor vehicle from a debtor in settlement of his debt of $1250 You are required to prepare (n) The Trading and Profit and Loss Account for the year ended 31 December, 1988. (b) The Balance for Mildred Underwood, using the vertical style, as at 31 December, 1988 showing clearly total fixed assets, total current assets and working capital.
