From the following trial balance of B Webb, extracted after one year’s trading, prepare a trading and profit and loss account for the year ended 31 December 19X6. A balance sheet is not required.

Trial Balance as on 31 December 19X6 Dr Cr

£ £

Sales 18,462 Purchases 14,629 Salaries 2,150 Motor expenses 520 Rent 670 Insurance 111 General expenses 105 Premises 1,500 Motor vehicles 1,200 Debtors 1,950 Creditors 1,538 Cash at bank 1,654 Cash in hand 40 Drawings 895 Capital 5.424 Stock at 31 December 19X6 was £2,548.

(Keep your answer; it will be used later in question 8.1)

25,424 25,424