The following balances were extracted from the books of D Stowe at 31 December 20X0:

The following matters are to be taken into account:
(i) Stocks at 31 December 20X0 were £7,350.
(ii) Depreciation of £1,200 is to be charged.
(iii) Expenses accrued at 31 December 20X0 were electricity £45, telephone £65 and sundry expenses £24.
(iv) Expenses prepaid at 31 December 20X0 were rent and rates £240, insurance £40.
Required:
Prepare a profit and loss account for the year ended 31 December 20X0, and a balance sheet at that date.

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Sales 15,620 Purchases 10,400 Stock at 1 January 20X0 4,140 Motor vehicles 16,400 Provision for depreciation at 1 January 20X0 7,900 Debtors 12,300 Creditors 15,600 Cash at bank 3,215 Motor expenses 620 Rent and rates Insurance Electricity Postage and telephone Drawings Sundry expenses Capital at 1 January 20X0 4,100 270 14,040 1,160. 185 120 250