Aneka Patel’s trial balance at 31 May 2014 was as follows:

Dr Cr £ £
Advertising 18,563 Bad debts 5,835 Bank overdraft 14,852 Bank interest paid 5,231 Equity at 1 June 2013 100,000 Dr Cr £ £
Cash in hand 650 Trade payables 24,510 Trade receivables 16,540 Depreciation on fixtures and fittings at 1 June 2013 6,503 Depreciation on motor cars at 1 June 2013 26,800 Drawings 67,500 Electricity 6,420 Fixtures and fittings (cost) 24,210 Insurance 2,640 Loan interest (half-year) 2,400 Long-term 6% loan (repayable in 2019) 80,000 Motor cars (cost) 65,920 Provision for doubtful debts at 1 June 2013 2,000 Purchases 482,230 Rent and rates 5,900 Revenue 626,220 Inventory at 1 June 2013 87,355 Sundry expenses 13,700 Telephone 11,240 Wages and salaries 64,551 880,885 880,885 Notes:
1 Inventory at 31 May 2014 was valued at £84,800 2 Depreciation is to be provided as follows: motor cars at 40, p.a. on the diminishing balance; fixtures and fittings at 10, on cost.
3 Revenue includes £2,000 from Wem Garage for the sale of a car which was bought two years previously at a cost of £6,000. No entries relating to the disposal of the car have been made, and the car has been fully depreciated for the two years prior to sale.
4 At 31 May 2014 £1,300 was owed for electricity, and £200 of the insurance was prepaid.
The second half-year’s loan interest is unpaid.
5 The provision for doubtful debts is to be increased by £500.
Required Prepare Aneka Patel’s income statement for the year ended 31 May 2014 and her statement of financial position as at that date. Show all relevant workings.