Self-test Alice maintains limited records. At 31 December 2008 her balance sheet was as follows:

Balance sheet at 31 December 2008 Delivery vehicles (cost £47,000) 29,470 Office equipment (cost £30,000) 26,740 56,210 Stock 11,250 Debtors 29,390 Prepaid insurance 1,033 Bank 7,840 49,513 Creditors 7,320 Wages accrued 1,403 8,723 40,790 97,000 Capital – Alice 97,000 The following is a record of bank transactions for the year:

Cash sales 32,380 Debtors’ payments 41,906 Additional capital paid in 5,800 Loan from Fry on 1 July 2009 10,000 Payment to creditors 49,320 Cash purchases 20,006 Wages 11,310 Motor expenses 8,670 Insurance 8,931 Bank charges 1,004 In addition Alice has taken cash from her sales before depositing it into the bank.

She prepared a summary of those takings.

Drawings 21,010 Motor repairs 4,031 Cash purchases 1,610 The following additional information is also available at 31 December 2009:

(i) Closing stock 13,210

(ii) Debtors 31,047

(iii) Creditors 8,240

(iv) Insurance prepaid 924

(v) Wages not yet paid 643

(vi) The loan bears interest at 10% p.a.

(vii) Depreciation is calculated as follows:

(a) Vehicles 10% on reducing balance

(b) Office equipment 5% straight line You are required to prepare the profit and loss account and balance sheet for the year ending 31 December 2009.