QUESTION 1 The folowing trial balance was extracted from the books of R Giggs at the close of business on 28 February

2007.

Dr Cr Purchases and Sales 150000 Cash at bank Cash in hand Capital account 1 March 2006 15830 Drawings Office Furniture Rent Wages and Salaries Discount 160 A/c receivable & A/C payable 5200 Inventory 1 March 2006 Allowance for doubtful debts 1 March 2006 Delivery van Van running costs Bad debts written off --------171590 171590 ---------------------Notes: (a) Inventory 28 February 2007 $2000 Required: Draw up the income statement for the year ending 28 February 2007 together with a balance sheets as at 28 February 2007 90000 4100 300

17100 2900 3400 31400 820 12300 4120 400 3750 600 800 ---------