J Kirkwood is a dealer who has not kept proper books of account. At 31 August 20X6 his state of affairs was as follows:

During the year to 31 August 20X7 his drawings amounted to £7,560. Winnings from a football pool £2,800 were put into the business. Extra fixtures were bought for £2,000.
At 31 August 20X7 his assets and liabilities were: Cash £84; Bank overdraft £165; Stock £21,491;
Creditors for goods £6,002; Creditors for expenses £236; Fixtures to be depreciated £600; Van to be valued at £2,500; Debtors £15,821; Prepaid expenses £72.
Draw up a statement showing the profit and loss made by Kirkwood for the year ended 31 August 20X7.

Transcribed Image Text:

Cash Bank balance Fixtures Stock 115 2,209 4,000 16,740 Debtors 11,890 Creditors 9,052 Van (at valuation) 3,000