The following trial balance has been extracted from the books of Garswood as at 31 March 2005:

Required:
Prepare Garswood’s trading and profit and loss account for the year to 31 March 2005 and a balance sheet as at that date.

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Dr Cr Advertising Bank Capital 2300 300 55 700 Cash 100 Discounts allowed 100 188 Discounts received 600 Drawings 17000 Electricity 1300 Investments 4000 Investment income received 400 Office equipment 10000 Other creditors 800 Other debtors 1500 Machinery 20000 Purchases 21400 Purchases returns 1400 Sales 63.000 Sales returns 3000 Stationery 900 Trade creditors 5200 Trade debtors 6500 Wages 38700 127 100 127 100