Hibo Ahmed has provided the following trial balance extracted from her books of account:

Additional information at 31 May 20*8

■ Stock was valued at £13,106.
■ Wages owing £814.
■ Insurance paid in advance £628.

Required

a) Prepare a trading and profit and loss account for the year ended 31 May 20*8.
b) Prepare a balance sheet at 31 May 20*8.

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Trial balance at 31 May 20*8 Dr Stock 1 June 20*7 Purchases Sales Wages Rent payable Insurances Motor expenses Advertising General expenses Office equipment at cost Delivery vehicle at cost Trade debtors Cash in hand Capital Drawings Trade creditors Bank overdraft £ 12,461 132,778 46,337 6,000 2,387 8,123 2,164 8,837 32,716 23,500 5,871 236 38,500 Cr £ 206,981 100,969 7,162 4,798 319,910 319,910