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Trading and Profit and loss Account and Balance Sheet

The following is the summarised Balance Sheet of Bracket and Racket Ltd a company wholly owned by its two shareholders,Bracket and Racket.
Balansheet as at 31 March 2002

$ $ $

Fixed Assets at Net book Value
Buildings 250000
Fixtures 100000
350000
Current Assets
Stock 1540000
Debtors 820000
cash 3000
2363000
Current Liabilites
Creditors for supplies 1210000
Accruals 192000
Bank 203000 1605000
758000
1108000

Financed By
Share capital-Ordinary shares 25000
Retained profits 910000
Loan Accounts-Bracket 104000
Loan Accounts-Racket 69000 173000
1108000

The company accountant resigned at the beginning of April 2002 and proper records were not kept for the six month period 1 April to 30 September 2002.

The following information is available for that six month period
0
Payment by cheque for purchases 1996000
Payment by cheque for expenses 823000
Interest charged on overdraft 20000
Cash and cheques banked 2784000

Included in the amount banked was $53000 for the sale of an unused building book value $70000.

Prior to banking the takings
-1 $205000 was used to pay wages for the six months
-2 Bracket and Racket each reduced their loans to the firm by $ 45000

Deptreciation on all fixed assets which remain in the companys books at the end of an accounting periods is calculated at 25% per annum on the net book value.

At 30 September 2002 the following figures were available.
Creditors for Supplies 510000
Accruals 103000
Debtors 420000
Stock 704000
Cash 8000
Bank over draft 195000
Unpresented Cheques 63000

Doubtful debts are estimated at 5% at 30 September 2002 and a provision for doubtful debts at that date is to be created.
Required
(a) Trading and Profit and loss Account for Bracket and Racket Ltd for the six months ended 30 September 2002.
(b) A Balance sheet for Bracket and Racket Ltd at 30 September 2002

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Solution Summary

Prepares Trading and Profit and loss Account and Balance Sheet for Bracket and Racket Ltd.

$2.19