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Target practice1. The following balances were exrracted from tl-re books of B Kouzalai for

the year ended 3Ojune 2OX7:

SalesPurchasesStock ar l JulY 20X6Stock at30June20X7Wages and salaries

SmrioneryHeat and lightMotor vehicle expenses

Rent payableDebtorsCreditorsCommission received

Additional information at 30June 2OX7:

(1) Wages and salaries owing 5820.

(2) Rent payable accrued 5300.

(3) Heat and light PrePaid 580.

(4) Commission receivable due but unpaid 5141

Motor expensesRent, rates and insurancePurchasesHeat and lightTelephone and sta[ionery

t286 370r29 860

19 22373 9BO

65 8403 6502 8407 620

11 9209 4307 620r 2L0

Required:

(a) Prepare aTradingand Profit & Loss Account fot year ended

30June 20Xf .

(b)PrepareaBalanceSheetextractshowingtheentriesrequiredintheCurrent Assets and Current Liabilides at 30 June 2OX7 '

(c) Explain the difference between an accrual and a prepayment-

2. Amend Birch's Trading and Profit & Loss Account for the year ended

31 Decemb er 2ox6 and Balance sheet at 31 December 20x6, to account

for the following listed accruals and prepayments'

Accruals PrePaYrnentt'S300 442

350 7372oo)

210136 95

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