9.1 Esme, a trader in fashion goods, extracted the following balances from her books on 31 December 20X1. , Dr Cr £
£
Capital account as at 1 January 20X1 60,900 Cash at bank 6,300 Cleaning, repairs and maintenance 2,600 Shop fittings at cost 50,000 Wages 10,000 Motor vehicle expenses 3,000 Motor vehicles, at cost 20,000 Creditors 5,100 Debtors 8,800 Stock as at 1 January 20X1, at cost 7,500 Purchases 64,800 Sales 113,400 Stationery 300 Insurance 200 Electricity 1,800 Rent 4,000 Rates 1,900 Cash in hand 600 Drawings 12,000 Provision for doubtful debts 400 Accumulated depreciation: shop fittings 10,000 motor vehicles 4,000 193,800 193,800 Esme has provided the following further information:
1. Stock at cost as at 31 December 20X1 amounted to £4,200.
2. Wages owing to staff as at 31 December 20X1 amounted to £200.
3. Rates in respect of the year commencing 1 April 20X1 amounted to £1,600, payable half-yearly in advance on 1 April and 1 October 20X1.
4. A bad debt of £300 is to be written off. The provision against doubtful debts is to be adjusted to 10 per cent of outstanding debtors.
5. Depreciation is to be provided as follows:

(a) on shop fittings at 10 per cent per annum on cost;

(b) on motor vehicles at 20 per cent per annum on the reducing balance.
Required:
Prepare Esme’s profit and loss account for the year ended 31 December 20X1 and her balance sheet as at that date.