Nicholas Davidson owns a small business. On 30 September 20-7 the following trial balance was taken from his books:

Trial Balance as at 30 September 20-7 Dr Cr

£

£

Salaries 8,250 Rent and rates 1,500 Cash 120 Bank overdraft 2,890 Debtors 8,810 Creditors 5,650 Returns inwards 580 Sundry expenses 256 Stock at 1 October 20-6 5,995 Carriage outwards 397 Discounts received 842 Motor vehicles 9,400 Insurance 564 Telephone 290 Sales 38,800 Purchases 28,640 Capital on 1 October 20-6 25,218 Vehicle expenses 768 Fixtures and fittings 8,500 Drawings 4,330 Loan from City Bank 5,000 78,400 78,400 Stock at 30 September 20-7 was £6,870 You are required to prepare a trading and profit and loss account for the year ended 30 September 20-7, and a balance sheet as at that date.