Self-test Larry presents you with a summary of certain transactions for the year ended 30 June 2009. He asks you to prepare the trading account for his first year of trading, so that he can determine the gross profit.

The following are the accounts given to you:

Sales 421,000 Purchases 214,000 Returns inwards 40,108 Carriage inwards 2,790 Larry also tells you that his closing stock amounts to £37,890. You are required to prepare the trading account so that the gross profit is shown.