E Sweet is a confectionery wholesaler. On 31 March 20-2 the following trial balance was extracted from his books:

Dr Cr

£

£

Capital at 1 April 20-1 20,000 Fixtures and fittings 5,000 Debtors and creditors 26,200 13,400 Discount allowed 1,300 Discount received 1,700 Stock at 1 April 20-1 11,700 Rent 1,100 Rates 600 Purchases and sales 39,300 54,500 Electricity 400 Salaries 1,500 Repairs and maintenance 300 Purchase returns 600 Loan from Finance Co.

6,000 Bad debts 300 Drawings 2,400 Hire of motor van 700 Cash in hand 800 Cash at bank 4,600 96,200 96,200 Notes:

(i) Stock at 31 March 20-2 amounted to £13,300

(ii) Salaries due but not paid £200

(iii) Fixtures and fittings should be depreciated by 10 per cent

(iv) A provision of £1,400 for doubtful debts should be created

(v) Rates paid in advance amounted to £100

(vi) Interest of £800 was due on loan You are required to:

(a) Prepare a trading and profit and loss account for the year ended 31 March 20-2.

(b) Prepare a balance sheet as at 31 March 20-2.