On 30 April 20-5 the following trial balance was extracted from the books of Robert Owen:

£

£

Capital 1 May 20-4 30,640 Furniture and equipment 10,500 Sales 46,800 Postage and stationery 1,750 Returns inwards 1,320 Rates and insurance 1,200 Wages and salaries 8,440 Purchases 27,560 Drawings 6,000 Trade creditors 2,830 Petty cash 80 Bank balance 4,600 Sundry expenses 8,570 Stock at 1 May 20-4 6,500 Loan from Mercantile Bank 5,000 Interest on loan 750 Freehold premises 15,000 Trade debtors 2,200 89,870 89,870 On 30 April 20-5 the following information is also available:

(i) Stock on 30 April 20-5 was valued at £7,640

(ii) Provide for carriage on purchases owing of £140

(iii) The annual fire insurance premium of £240 was paid on the due date, 1 February 20-5; make the necessary adjustment for the unexpired portion at 30 April 20-5 You are required to:

(a) Prepare a trading and profit and loss account for the year ended 30 April 20-5.

(b) Prepare a balance sheet as at 30 April 20-5.