Happy did not keep proper books of account. At 31 August 20X1 his balances were:
................................................................. £
Lorry (at valuation) ................... 3,000
Tools .................................... 4,000
Inventories............................. 16,740
Trade receivables .................... 11,890
Bank ..................................... 2,209
Cash ....................................... 115
Trade payables ......................... 9,052
Details of transactions in year to 31 August 20X2:
Tools purchased ............................ 2,000
Drawings .................................... 7,560
Legacy ...................................... 2,800
At 31 August 20X2 the assets and liabilities were:
Depreciation on tools £600, lorry now valued at £2,500, trade receivables £15,821, prepaid expenses £72, inventories £21,491, trade payables £6,002, payables for expenses £236, cash £84, bank overdraft £165.
Required
Draw up a statement showing the profit or loss made by Happy for the year ended 31 August 20X2?