Question: The books of Francis Macarthy, a wholesale dealer in toys, showed the following balances at the close of business on 30th June, 1962:
• Re-printed by courtesy of the Royal Society of Arts (R.S.A.)
You are required to draw up Macarthy's Trading and Profit & Loss Account for the year ended 30th June, 1962, and his Balance Sheet as at 30th June, 1962, taking into account the following:
(a) On 30th June, 1962, his unsold stock was valued at £4,385.
(b) During the year Bad Debts, as they occurred, had been debited to Provision foi Bad Debts Account. Additional provision should be made to bring the balance of this account up to £100.
(c) Fixtuies and Fittings should be depreciated by £50.
(d) The rent of the warehouse and offices is £1,400 a year and the quarterly instalment due on 24th June, 1962, has not been paid.