L Stokes drew up the following trial balance as at 30 September 19X8. You are to draft the trading and profit and loss account for the year to 30 September 19X8 and a balance sheet as at that date.

Dr Cr

£ £

Loan from P Owens 5,000 Capital 25,955 Drawings 8,420 Cash at bank 3,115 Cash in hand 295 Debtors 12,300 Creditors 9,370 Stock 30 September 19X7 23,910 Motor van 4,100 Office equipment 6,250 Sales 130,900 Purchases 92,100 Returns inwards 550 Carriage inwards 215 Returns outwards 307 Carriage outwards 309 Motor expenses 1,630 Rent 2,970 Telephone charges 405 Wages and salaries 12,810 Insurance 492 Office expenses 1,377 Sundry expenses 284 171,532 171,532 Stock at 30 September 19X8 was £27,475.

13,1 Write up a two-column cash book from the following details, and balance off as at the end of the month:
Started business with capital in cash £100.
Paid rent by cash £10.
F Lake lent us £500, paid by cheque.
We paid B McKenzie by cheque £65.
Cash sales £98.
N Miller paid us by cheque £62.
We paid B Burton in cash £22.
Cash sales paid direct into the bank £53.
G Moores paid us in cash £65.
We took £50 out of the cash till and paid it into the bank account.
We repaid F Lake £100 by cheque.
Cash sales paid direct into the bank £66.
Paid motor expenses by cheque £12.
Withdrew £100 cash from the bank for business use.
Paid wages in cash £97.