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Question: question 10 the following trial balance has been extracted from...

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QUESTION 10 The following trial balance has been extracted from the books of SEREBOUR ENT. on 30 November 2003 Sales Returns Debtors and creditors Office equipment 125,658 1,902 7,983 6,341 11,257 - cost 10,000 accumulated depreciation 11/2002 1,550 Vehicle -cost 3,500 accumulated depreciation 1/1/2002 700 Purchases Stock at 1/1/2002 Carriage inwards Carriage outwards Vehicle expenses Electricity Wages and salaries Rent and business rates Stationery and postages Bank deposit account Bank Discount allowed and received VAT creditor 64,726 5,000 908 272 1,349 1,803 11,550 8.800 2,681 10,000 4,797 5,652 3,765 1,325 PAYE creditor Capital at 1 December 2002 Drawings 453 4,300 15,000 oan 16.000 163,636 163.636 Following the extraction of the above trial balance from the ledgers and an examination of the accounting records, the following additional information were obtained.

PAYE creditor Capital at 1 December 2002 Drawings Loan 453 4,300 15,000 16,000 163,636 163.636 Following the extraction of the above trial balance from the ledgers and an examination of the accounting records, the following additional information were obtained. 1. The value of the stock on hand at 30 November 2003 was c5,700 2. The bank deposit was made on 1 June 2003 . This account earns interest at 8% per annum. The balance shown in the ledgers is the only deposit into this account. Interest is credited on 31 December annually 3. Bank charges accrued on 30 November 2003 are estimated to be 60 4. Vehicle expenses include road tax of c125 per annum for a vehicle, which expires on 31 December 2003, and vehicle insurance of c360 per annum which was paid on 1 July 2003 5. There is one employee whose gross wage is c1,050 per month. The wage for November 2003 has not yet been entered in the ledgers. 6. The balance of the rent and rates account includ 31 December 2003 of c1,200 and payment of rates for the six months to 31 March 2003 of 4,000 es a payment of rent for the three months to 7. Following a review of debtors at the year end, it is decided that a bad debt of c1,207 should be written off, and a provision for doubtful debts made of 2% of debtors 8. Office equipment is to be depreciated at 10% per annum on cost, and motor vehicles are to be depreciated at 20% per annum on cost. 9. Loan interest of 10% per annum is to be accrued. Requirements Using the above information, prepare a trading and profit and loss account for SEREBOUR ENTERPRISE for the period ended 30 November 2003 together with the balance sheet at that date. (20 marks)

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