B Stanley is a sole trader. The following trial balance was extracted from his books on 31 December 20-5:
Capital (at 1 January 20-5)
31,660 Drawings 4,500 Freehold land and buildings 28,000 Motor van 2,200 Purchases 60,000 Sales 82,000 Salaries 9,100 Discount allowed 820 Discount received 640 Debtors 2,400 Creditors 1,800 Cash in hand 600 Cash at bank 1,980 Stock at 1 January 20-5 3,800 Rates 650 Insurances 150 Telephone 100 Fixtures and fittings 1,800 116,100 116,100 On 31 December 20-5 the following adjustments had not been made:
(i) At 31 December 20-5 stock in trade was valued at £4,000 (ii) A telephone bill for £30 was outstanding (iii) Insurances of £25 were prepaid You are required to:

(a) Prepare a trading and profit and loss account for the year ended 31 December 20-5.

(b) Prepare a balance sheet as at 31 December 20-5.