The following trial balance was extracted from the books of a sole trader, as at 31 December 2008:

At the end of December the trader was able to produce the following additional information:

a Stock on 31 December 2008 is 9,200. b During 2008 the sole trader withdrew goods valued at 5,000 for his own private use. Rates and insurances paid in advance at 31 December 2008, is 48. d Wages and salaries outstanding at 31 December 2008 is 494. e The provision for doubtful debts is to be reduced to 90. f One fourth of the car expenses represents the costs of the sole trader's motoring for private, as distinct from business, purposes. g The item 'Repairs to buildings 3,500' includes 2,500 in respect of alterations and improvements to the buildings.

Required 1 Prepare the profit and loss account for the year ended 31 December 2008, and 2 Prepare the balance sheet at that date.

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3 Sales 65,000 Repairs to buildings 3,500 Car expenses 440 Provision for doubtful debts 170 Freehold land and buildings 10,000 Furniture and fittings 1,500 Purchases Wages and salaries 48,000 8,606 Rates and insurances 348 Discounts allowed 1,199 Motor car 1,850 Discounts received 1,040 Drawings 2,500 Bad debts 390 Trade debtors 4,987 General expenses 1,680 Trade creditors 5,310 Bank 1,420 Capital account 21,000 Opening stock 6,100 92,520 92,520