Review Questions

Volume 1 - Chapter 7

1. From the following trial balance of M Dawe, after his first year’s trading, you
are asked to draw up a trading and profit and loss account for the year ended 31
March 20X2.

Dr Cr
£ £
Sales 23,414
Purchases 16,111
Capital 40,000
Debtors 6,019
Creditors 5,645
Bank 3,765
Cash in hand 129
Premises 27,000
Fixtures and fittings 7,500
Equipment 4,000
Wages 1,900
Motor vehicles 279
Drawings 1,400
Sundries 456
Rent 500
69,059 69,059

Closing stock as at 31 March 20X2 was £4,344.

2. From the following trial balance of C Roddy, after her first year’s trading, you
are asked to draw up a trading and profit and loss account for the year ended 30
June 20X4.

Dr Cr
£ £
Sales 11,3321
Purchases 98,777
Capital 68,744
Debtors 6,019
Creditors 5,645
Bank 6,554
Cash in hand 443
Premises 50,000
Fixtures and fittings 10,000
Equipment 12,500
Advertising 894
Wages 6,555
Drawings 5,444
Sundries 577
Rent 1,855
Insurance 1,200
194,264 194,264

Closing stock at the end of the year was valued at £9,887

3. From the following trial balance of N Briggs, after his first year’s trading, you
are asked to draw up a trading and profit and loss account for the year ended 31
December 20X7.

Dr Cr
£ £
Sales 17,665
Purchases 12,332
Capital 55,000
Debtors 4,353
Creditors 3,477
Bank 2,101
Cash in hand 90
Premises 35,000
Equipment 7,450
Vehicles 8,700
Wages 1,900
Motor expenses 461
Drawings 2,500
Rent 500
Insurance 755
76,142 76,142

Closing stock as at 31 December 20X7 £8,997

4. From the following trial balance of C Brunt, after his first year’s trading, you
are asked to draw up a trading and profit and loss account for the year ended 31
December 20X2.

£ £
Sales 8,443
Purchases 5,765
Capital 8,000
Bank 890
Advertising 423
Fixtures 2,000
Motor expenses 534
Salaries 2,321
Motor vehicles 3500
Debtors 1,223
Creditors 713
Drawings 500
17,156 17,156

Closing stock as at 31 December 20X2 was £868

5. From the following trial balance of L Bullen, after his first year’s trading, you
are asked to draw up a trading and profit and loss account for the year ended 31
December 20X5.

£ £
Sales 71,313
Purchases 52,414
Capital 17,500
Bank 2,312
Wages 7,545
Equipment 11,500
General expenses 3,443
Insurance 898
Motor vehicles 6,500
Debtors 5,201
Creditors 3,767
Drawings 2,767
92,580 92,580

Closing stock as at 31 December 20X5 was £2,535