Self-test The following is the trial balance of Jacques at 31 December 2009. You are required to prepare the profit and loss account, having been given the gross profit for the year.

Advertising 3,000 Bank 700 Creditors 6,900 Bank loan 7,000 Debtors 30,000 Electricity 2,800 Insurance 1,700 Investments 2,800 Investment income 400 Machinery:
At cost 42,000 Accumulated depreciation at 1 January 09 15,200 Office expenses 4,900 Owner’s capital 25,000 Interest paid 400 Profit and loss account at 1 January 2009 13,200 Provision for doubtful debts 800 Rent and rates 7,500 Stock at 31 December 2009 15,500 Vehicles:
At cost 8,000 Accumulated depreciation at 1 January 09 4,000 Wages and Salaries 41,300 Gross profit 88,100 160,600 160,600 Depreciation for the year is £4,200 for machinery and £1,600 for vehicles.
Note that although you are given the complete trial balance, you must be aware that there are certain account balances that are not required for answering the above question as they are balance sheet items. We will deal with these in Chapter 22.