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A trader keeps his books by single entry. During the year 1997 he kept a cashbook of which the following is an analysis:
Received from debtors 128,000
Additional capital introduced on 1st Oct.1997 16,000
Loan from Mark at 16% p. a on 1st July 1997 21,000
Paid to creditors 115,400
General expenses paid 7,800
Salaries paid 6000
Drawings 8,000
Deposits in the bank during the year 100,000
Withdrawals from the bank during the year 72,000
The following balances existed on 1st Jan. 1997. Sundry debtors MK 30,600; sundry creditors Mk23, 000; bank overdrafts Mk 16,000; buildings Mk85,000; stock Mk43,600 and cash balance Mk 1,200.
The following balances existed on 31.12.1997. Sundry debtors Mk32, 000; Sundry creditors Mk28, 800 and Stocks Mk52, 000.
Depreciate building by 5% and provide interest on Mark’s loan.
You are required to prepare trading and profit & loss account for the year ended 31.12.1997 and the balance sheet as on that date.
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