A businessman has no double-entry records of his transactions but has a cash book from which the following summary for the year ended 31 December 20X1 has been prepared:

Draft a profit and loss account for the year ended 31 December 20X1, and a balance sheet as at that date, providing for 5 per cent depreciation of the fixed assets on a straight-line basis.

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Bank overdraft, 31 December 20X0 7,500 Receipts from trade debtors 90,000 Further capital introduced 30,000 Loan from X on 31 March on which interest is payable at the rate of 5 per cent a year 20,000 Payments to trade creditors 35,000 General expenses 9,000 Wages 12,000 Drawings 22,000 On 3 December 20X0, the business had trade debtors for 70,000 trade creditors for 50,000 stocks valued at 30,000 sundry fixed assets which had cost 60,000 provision for depreciation 10,000 On 31 December 20X1 there were trade debtors for 85,000 trade creditors for 65,000 stocks valued at 27,000 sundry fixed assets which had cost 68,000