Leonardo Da Vinci, who sells computers, has extracted the following balances from the L. Da Vinci Trial Balance as at 30 September 2001 accounts.

Debit

£

Sales Sales returns 8,000 Purchases 70,000 Purchases returns Opening stock of computers 6,500 Drawings 8,500 Debtors 12,000 Creditors Cash at bank 1,800 Long-term loan Discounts allowed 300 Carriage inwards 250 Business premises 18,000 Motor van 7,500 Computer 1,500 Wages 32,500 Electricity 825 Telephone 325 Insurance 229 Rent 1,250 Business rates 1,000 Capital 170,475 You have the following additional information.

Credit

£

105,000 1,800 13,000 6,600 44,075 170,475 1. Closing stock of computers as at 30 September 2001 is £7,000.

2. Da Vinci owes £175 for the telephone and £1,200 for electricity.

3. The prepayments are £25 for insurance and £250 for rent.

Required:

Prepare Da Vinci’s trading and profit and loss account for the year ended 30 September 2001 and a balance sheet as at 30 September 2001.