On 1 November 20*7 the business assets of Charles were as follows:

Fixed assets £42,000; current assets £17,000, current liabilities £14,000.

A year later, on 31 October 20*8, the fixed assets of the business were £56,000; the current assets were £20,000; and the current liabilities were £15,000. In addition, the business had a long-term bank loan of £10,000 which is due to be repaid in 2023.

During the year ended 31 October 20*8, Charles paid a legacy of £12,000 into the business bank account. His personal drawings for the year amounted to £14,000.

Required

Calculate the profit or loss made by Charles’ business for the year ended 31 October 20*8.