Vincent Gogh, a shopkeeper, has the following trial balance.

V. Gogh Trial Balance as at 31 December 2001 Debit Credit 3 £

Sales 40,000 Sales returns 500 Purchases 25,000 Purchases returns 450 Opening stock 5,500 Debtors 3,500 Creditors 1,500 Cash at bank 1,300 Long-term loan 3,700 Motor car 8,500 Shop 9,000 Business rates 1,000 Rent 600 Electricity 350 Telephone 450 Insurance 750 General expenses 150 Wages 10,500 Drawings 12,900 Capital 34,350 80,000 80,000 You also have the following additional information.

1. Closing stock as at 31 December 2001 is £9,000.

2. V. Gogh owes £350 for electricity.

3. £200 of the rent is paid in advance.

Required:

Prepare V. Gogh’s trading and profit and loss account for the year ended 31 December 2001 and a balance sheet as at 31 December 2001.