问答题 Question 8 (Total: 20 marks) Mr Lee is a sole trader. He does not know accounting and he only keeps records of cash receipts and payments. The following is a statement of a receipts and payments of his business for the year ended 31.12 .01: $ $ Cash in hand 1.1.01 50,400 Payments for goods 1,131,000 Sales receipts 1,569,000 Transport expenses 87,000 Cash put in by Mr Lee 26,000 Rents and rates 38,100 Loan from Mr Wong 200,000 Wages paid to office assistants 60,000 Drawings by Mr Lee 120,000 Purchase of equipment 400,000 ________ Balance at 31.12.01 9,300 1,845,400 1,845,400 Further information: (a) The loan from Mr Wong was received on 1.1.01 . Interest payable is 10% p.a. (b) The equipment was purchased on 1.1.01. Estimated life is 5 years with no residue value. Depreciation should be provided for it on the straight line mrthod. (c) The assets and liabilities of Mr Lee were as follows: 1.1.01 31.12.01 $ $ Stock in trade at cost 150,000 240,000 Trade debtors 138,000 200,000 Trade creditors 100,000 120,000 Equipment at cost __ 400,000 Cash balance 50,400 9,300 Required: Prepare a Trading and Profit and Loss Account for Mr Lee for the year ended 31.1.01 and a Balance Sheet as at that date.