I am having a problem with agreeing with both the sales and the purchases for the year to 31 Mar 09 in the TP&L.
Cash Sales = £163,500
Last yr Debtors = £7,500
This years Debtors = £8,950
By my calculations the sales are £209,050 (£100 less than showing in the answer).
The only other information that could affect this is a new provision for bad debts of 5% (£448) but I have accounted for this in the expenses, which agrees with the answer.
In the question it refers to goods taken for owners own use, so I have Dr the Drawings and Cr the purchases but although the increased drawings are reflected in the balance sheet it is not reflected in the purchases in the TP&L.
Has anyone done this question or could offer me some support as my training provider is unable to help?