Prepare the profit and loss account for Top-to-Toe for the year ending 31 December 1988
Rob Walters has a business called Walters Watches which has the following items in its balance sheet as at 31 March 1998:
£
Capital 85,000
Creditors 5,000
Bank loan 15,000
Fixtures and !Rungs 45,000
Stocks 24.000
Debtors 17,000
Bank balance 19,000
During the first week of April. the business:
• bought more stock on credit for £7 ,000;
• repaid the bank loan in full;
• collected a cheque for £7 ,000 from a debtor;
• bought more fixtures and fittings, paying £5,000 for them by cheque;
• paid one of its creditors £3,000 by cheque.