P. Ramish is a car mechanic operating from a small garage. He has been so busy that he has not had time to keep proper financial records. He is able to provide the following information.

R Ramish also notes that during the year his drawings totalled $30,800, but that he did invest an extra $20,000 of capital during the year.

Prepare statement of affairs at 1 June 2013 and 31 May 2014 to calculate the opening and closing capital. Calculate the profit or loss for the year ended 31 May 2014.

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1 Jun 2013 31 May 2014 $ Premises 260 000 225 200 Vehicles 24 000 20 400 Machinery 24 100 26 600 Inventory 38 300 28 800 Trade receivables 39 500 36 000 3 700 6 900 Other receivables 4 000 Other payables 5 100 Loan 11 200 29 300 Trade payables 13 400 44 500 Bank overdraft 5 700 Cash at bank 10 600