A J. Wright, a sole trader, extracted the following trial balance from his books at the close of business on 31 March 2012:

Notes:

(a) Inventory 31 March 2012 £6,805.

(b) Wages and salaries accrued at 31 March 2012 £3,500; Office expenses owing £16.

(c) Rent prepaid 31 March 2012 £600.

(d) Increase the allowance for doubtful debts by £110 to £740.

(e) Provide for depreciation as follows: Fixtures and fittings £190; Van £1,400. Required: Prepare the income statement for the year ending 31 March 2012 together with a statement of financial position as at that date.

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Purchases and sales Inventory 1 April 2011 Capital 1 April 2011 Bank overdraft Cash Discounts Returns inwards Returns outwards Carriage outwards Rent and insurance Allowance for doubtful debts Fixtures and fittings Van Accounts receivable and accounts payable Drawings Wages and salaries General office expenses Dr 61,420 7,940 140 2,480 3,486 3,210 8,870 1,900 5,600 12,418 21,400 39,200 319 168,383 Cr 127,245 25,200 2,490 62 1,356 630 11,400 168,383