X is a small cloth merchant, who has not kept full double entry records. His position as on 1st January 2016 stood as follows: -
Cash in hand BDT 760; Balance at Bank BDT 6,950; Stock BDT 12,600; Sundry Debtors BDT 4,500; Furniture BDT 2,000 and Sundry Creditors BDT 4,310. His position at the end of 2016 was as : Cash in hand BDT 470; Balance at Bank, as per Bank Pass Book BDT 5,930; Stock BDT 16,700; Sundry Debtors BDT 6,320; Furniture BDT 2,000; Mobike BDT 4,000; and Sundry Creditors BDT 5,300. During the year, he had withdrawn BDT 400 per month for his personal expenses and purchased a new mobike for his business use for BDT 4,000. A cheque of BDT 1,000 issued on 29.12.2016 was presented for payment on 12.1.2017
Prepare a Statement, showing his trading result for the year ended 31st December, 2016 and a Balance Sheet as on 31st December, 2016 after (a) providing 10% depreciation on furniture and 20% depreciation on mobike; (b) writing-off BDT 320 as actual bad debts; and (c) making a 5% provision for likely bad debts.
