Clare Analetto, an antique dealer, has the following trial balance as at 31 December 2005.

You also have the following notes to the accounts.
1. Closing stock of antiques is £7,000.
2. Depreciation for the year is to be charged at 2 % on premises, 10 % on machinery, 15 % on office equipment, and 25 % on the motor car.
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Required: Prepare C. Analetto’s trading and profit and loss account for the year ended 31 December 2005 and the balance sheet as at 31 December 2005.

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Debit Credit Sales 100,000 Sales returns 5,000 Purchases 70,000 Purchases returns 6,000 Opening stock of antiques 9,000 Debtors 16,800 Business rates 800 Creditors 14,000 Cash at bank 17,100 Long-term loan 12,000 Bank interest receivable 850 Rent 2,050 Electricity 1,950 Insurance 1,250 Loan interest 1,200 General expenses 1,025 Motor van expenses 1,800