On 31 May 20-6 the following trial balance was extracted from the books of R. Colebrook:

Dr Cr

£

£

Capital 29,250 Drawings 4,600 Bank and cash 9,200 Salaries and wages 23,000 Purchases and sales 35,000 68,000 Debtors and creditors 12,350 18,000 Office expenses 2,500 Light and heat 1,700 Rates 1,400 Premises 15,000 Fixtures and fittings 2,300 Vehicles 4,200 Stock at 1 June 20-5 4,100 Sales and Purchase returns 400 500 115,750 115,750 On 31 May 20-6 the following information is also available:

(i) Stock on 31 May 20-6 was £3,900

(ii) Wages owing but not yet paid £100

(iii) Light, heat and rates are to be apportioned:

£ to trading account I to profit and loss account

(iv) Included in the office expenses is an insurance prepayment of £50 You are required to:

(a) Prepare R. Colebrook’s trading and profit and loss account for the year ended 31 May 20-6.

(b) Prepare a balance sheet as at 31 May 20-6.