CLASS PRACTICE QUESTION

The trial balance of A Smith, builder, at 31 March 2021, was as follows:

MK MK
Capital 95,720
Drawings 12,500
Plant and machinery 50,000
Purchases 181,170
Purchases returns 1,180
Wages 73,780
Sundry debtors 86,560
Sundry creditors 50,960
Discount allowed 780
Discount received 310
Carriage inwards 1,300
Sales 350,310
Sales returns 2,970
Office salaries 20,200
Cash at bank 10,280
Cash in hand 3,200
Stock at beginning of year 30,230
Rent and rates 8,500
Factory expenses 13,000
Carriage outwards 600
Bad debts written off 2,010
Provision for bad debts 4,000
Sundry expenses 5,400
502,480 502,480

Allow for:
(a) Wages accrued, MK5,200
(b) Rates prepaid, MK2,000
(c) Increase provision for bad debts by MK1,000
(d) Provide 10% depreciation on plant and machinery
(e) Value of stock at 31 March, MK50,000.

You are required to prepare trading and profit and loss accounts for the year
ending 31 March 2021, and a balance sheet as at that date.