From the following trial balance and attached notes, prepare an income statement for the year ended 30 September 2009 and a balance sheet as at that date.

Notes:
1 Closing inventory was valued at £14,560.
2 A car costing £7,900 on 1 October 2006 was sold during the year for £1,500.
Depreciation to the date of sale was £6,000. No entries had been made relating to this sale, other than crediting the proceeds to a separate general ledger account.
3 £600 was owed for rent and rates at the end of the year, and £200 had been prepaid at the end of the year relating to sundry office expenses.
4 The provision for doubtful debts was to be adjusted to 5% of the closing receivables total.
5 Depreciation is charged as follows:
Computer equipment: over five years on the straight line basis, assuming no residual values Motor cars: 60% p.a. on the diminishing balance basis, with no depreciation being charged in the year of sale.

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Felicity Frankton Trial balance as at 30 September 2009 Dr Cr Bad debts written off 500 Bank balance 1,260 Capital, 1 October 2008 15,940 Carriage inwards 320 Carriage outwards 430 Computers, at cost 3,610 Depreciation on computers, 1 October 2008 1,850 Depreciation on motor cars, 1 October 2008 7,600 Discount allowed 340 Drawings 16,900 Light and heat 2,200 Motor cars, at cost 16,500 Opening inventory, 1 October 2008 16,520 Payables 13,600 Proceeds of sale of motor car 1,500 Provision for doubtful debts, 1 October 2008 800 Purchases 32,410 Receivables 24,200 Rent and rates 3,200 Revenue 105,800 Sundry office expenses 10,200 Wages and salaries 18,500 147,090 147,090