David Nicholson is the owner of a textile business. He has completed his trading and profit and loss account for the year ended 31 December 20-2. The following balances remain in his ledger:

£

Net profit 18,500 Capital at 1 January 20-2 25,750 Drawings 5,000 Debtors 3,475 Creditors 1,025 Motor vehicles 16,500 Office equipment 5,650 Furniture and fittings 3,800 Bank 5,380 Cash 520 Stock at 31 December 20-2 4,950 You are required to:

(a) Prepare a balance sheet as at 31 December 20-2 clearly showing all the items under the appropriate headings.

(b) David Nicholson had taken drawings in 4 equal instalments, by cheque, at the end of each quarter.
You are required to:
Write up the drawings account and the capital account, including all relevant dates and transfers, and balance the accounts for the year ended 31 December 20-2.