B Arkwright started in business on 1 January 20X5 with £10,000 in a bank account.

Unfortunately he did not keep proper books of account.

He is forced to submit a calculation of profit for the year ended 31 December 20X5 to the Inspector of Taxes. He ascertains that at 31 December 20X5 he had stock valued at cost £3,950, a van which had cost £2,800 during the year and which had depreciated by £550, debtors of £4,970, expenses prepaid of £170, bank balance £2,564, cash balance £55, trade creditors £1,030, and expenses owing £470.

His drawings were: cash £100 per week for 50 weeks, cheque payments £673.

Draw up statements to show the profit or loss for the year.