The following trial balance was taken from the books of Yama Co. as at 31 December 1984.

The following information is also to be taken into account:
(i) Stock at 31 December 1984, £6,000.

(ii) Selling expenses owing £600.

(iii) Administrative expenses include rates of £800 paid for the year ending 31 March 1985.

(iv) A provision for doubtful debts of 2% of debtors is to be provided.

(v) Depreciation is to be provided at 10% on the cost of the fixtures at 1 January 1984.

Required:

(a) Prepare a trading, profit and loss account for the year ended 31 December 1984 and a balance sheet as at that date.

(b) Explain whether you think the Yama Co. has been successful during 1984;

what additional information would you need to assist you in making such a judgement?

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Stock at 1 January 1984 4,400 Buildings (cost) 6,000 Fixtures (cost) Bank Debtors 2,000 4,100 11,000 Creditors 16,800 Capital 7,000 Purchases 21,600 Sales 42,400 Depreciation on fixtures at 1 January 1984 600 Administrative expenses 5,800 Selling expenses 5,000 Distribution expenses Financial expenses Drawings 3,000 900 3,000 66,800 66,800