Question: The following Trial Balance was extracted from the books of Jackson trader, at 31st March, 1961.
The following matters are to be taken into account:
(a) The Stock in Trade at 31st March, 1961 was valued at £5,040.
(b) Salaries accrued at 31st March, 1961 amounted to £840 and Rent accrued, £250.
(c) Insurances paid in advance at 31st March, 1961 amounted to £30.
(d) The provision for doubtful debts is to be increased to £250.
(e) The stock of unused Petrol at 31st March, 1961 was valued at £25.
(f) The balance of £1,250 on Motor Vans Account was made up as follows:
Provide for the depreciation on the new van at the rate of 20% per annum on cost. You are required to prepare a Trading and Profit & Loss Account for the year to 31st March, 1961 and a Balance Sheet as at that date.