T. Smith started in business on 1 August 2016, with £60,000 capital in cash. During the first year he kept very few records of her transactions. The assets and liabilities of the business at 30 July 2017 were:

During the year. Smith withdrew £25,000 cash for her personal use but he also paid £8,000 received from the sale of his private car into the business bank account.

Required:
From the above information, prepare a statement of financial position showing the financial position of the business at 30 June 2017 and indicating the net profit for the year.

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f Freehold premises 160,000 Mortgage on the premises 120,000 Inventory Accounts receivable Cash and bank balances Accounts payable 50,000 4,000 8,300 14,000