Pine started business on 1 October 2019. The following is his trial balance at 30 September 2020:

The following information was obtained after the trial balance had been prepared:
1. Inventory at 30 September 2020: £3000.
2. Furniture is to be depreciated at a rate of 15 percent on cost.
3. At 30 September 2020, Pine owed £500 for telephone expenses, and insurance had been prepaid by £200.

Required:
Prepare Pine’s statement of profit or loss for the year to 30 September 2020 and a statement of financial position as at that date.

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Capital Cash Payables Receivables Furniture at cost General expenses Insurance £ 400 5 000 8 000 14 000 2 000 £ 6 000 5.900