From the following trial balance and additional information construct an income statement for the year ended 31 July 2017 and a balance sheet as at that date.

Additional information:
1. Inventory as at 31 July 2017 is valued at £19,800.
2. Depreciation is to be provided on cost at the following rates:
a. Property 2%
b. Machinery 20%.
3. Wages still owing as at 31 July 2017 were £2,400.
4. Maintenance prepaid as at 31 July 2017 was £450.
5. The provision for doubtful debts is to be maintained at 4% of debtors.

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Sales Purchases Opening inventory Property Machinery Debtors Creditors General expenses Maintenance expenses K Atkinson Trial balance as at 31 July 2017 Wages Office expenses Provision for depreciation on property Provision for depreciation on machinery Provision for doubtful debts Capital Drawings Bank Loan Dr 75,000 11,000 200,000 28,000 7,850 5,400 8,900 35,000 5,470 17,500 4,300 398,420 Cr 168,000 5,670 5,500 11,000 250 148,000 60,000 398,420