The following trial balance was taken from the books of Robert Witham at 31 December 20-6:

£

£

Capital (1 January 20-6)

11,700 Drawings 2,100 Rent and rates 1,340 Wages and salaries 2,711 Purchases 23,821 Sales 32,484 Bad debts 88 Trade debtors 3,840 Trade creditors 1,535 Stock (1 January 20-6)

3,112 Cash at bank 247 Carriage inwards 138 Motor vehicles 7,037 Office expenses 488 Sundry expenses 797 45,719 45,719 Notes:

(i) Stock at 31 December 20-6 was valued at £2,477

(ii) Office expenses includes the cost of stationery, of which there remained stock worth £56 at 31 December 20-6

(iii) Wages in arrears at 31 December 20-6 were £42 You are required to:

(a) Prepare the trading and profit and loss account of Robert Witham for the year ended 31 December 20-6.

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