5.4* The following information has been extracted from Lathom’s books of account for the year to 30 April 2004:

£

Purchases 45000 Sales 60000 Stock (at 1 May 2003) 3000 Stock (at 30 April 2004) 4000 Required:

(a) Prepare Lathom’s trading account for the year to 30 April 2004; and

(b) State where the stock at 30 April 2004 would be shown on the balance sheet as at that date.