1. James imports and sells car batteries.

The following balances were extracted from his books on 30 September

2005.

$ $
Revenue 60000
Inventory at 1 Oct 2004 4000
Purchases 21000
Carriage Inwards 4200
Carriage Outwards 1000
Commission received 2100
Electricity 2400
Wages & Salaries 26000
Insurance 2300
Rent & Rates paid 1400
Motor vehicle expenses 2700
General Expenses 12000
Discount Received 400
Bank 2600
Motor vehicle at Cost 22000
Trade Payables 14000
Drawings 13000
Capital 32900
112000 112000
Additional Information :

(i) Inventory at 30 September 2005 was valued at $6000.

(ii) Wages and Salaries , $1400, were owing at 30 September 2005.
(iii) Insurance prepaid as at 30 September 2005 was $ 600 .

(a) Prepare the Trading Account and the Profit and Loss Account (Income Statement) for the year ended 30
September 2005.
(b) Prepare the Balance Sheet (Statement of Financial Position) as at 30 September 2005.
 2. The Rock imports and sells car kits. The following balances were extracted from his books on 30 September 2006.

$ $
Revenue 74000
Inventory at 1 Oct 2005 3000
Purchases 27000
Carriage Inwards 2300
Carriage Outwards 3000
Commission received 1200
Electricity 4000
Wages & Salaries 21000
Insurance 2600
Rent & Rates paid 5000
Motor vehicle expenses 4300
General Expenses 10000
Discount Received 500
Bank 2300
Motor vehicle at Cost 16000
Trade Payables 12000
Drawings 19800
Capital 28000
118000 118000

Additional Information :

(iv) Inventory at 30 September 2006 was valued at $3000.

(v) Wages and Salaries , $300, were owing at 30 September 2006.
(vi) Insurance prepaid as at 30 September 2006 was $ 900 .

(a) Prepare the Trading Account and the Profit and Loss Account(Income Statement) for the year ended 30
September 2006.
(b) Prepare the Balance Sheet(Statement of Financial Position) as at 30 September 2006.