On 31 December 20-7 the following trial balance was extracted from the books of Michael Silverwood:

Dr Cr £
£
Debtors 6,480 Creditors 2,360 Stock (1 January 20-7)
4,340 Motor vehicle 11,500 Equipment 6,350 Rent 2,180 Wages 9,178 Rates 565 Purchases 19,200 Sales 36,840 Returns inwards 450 Returns outwards 750 Bad debts 142 Cash at bank 6,250 Insurance 458 Sundry expenses 907 Capital (1 January 20-7)
31,300 Drawings 3,250 71,250 71,250 Notes: at 31 December 20-7 the following adjustments had not been made:
(i) Rates prepaid were £126 (ii) Included in Sundry expenses is the cost of stationery; there was a stock of stationery valued at £72 (iii) Wages accrued were £450 (iv) Stock at 31 December 20-7 was valued at £5,328.
You are required to:

(a) Prepare a trading, profit and loss account for the year ended 31 December 20-7.

(b) Prepare a balance sheet as at 31 December 20-7.