The following trial balance was extracted from the books of ATEC as at 31.12.X9

The following matters have not been taken into account in the preparation of the above trial balance:
► stock as at 31.12.X9 £6,200 ► accruals required as at

► rents receivable are £50 per month as from 1.1.X9 ► the business commenced 1.1.X2 and depreciation has been provided on a straight line basis for premises and equipment since that date except for the cur¬ rent year for which no depreciation charge has yet been made ► vehicles are depreciated at 25% reducing balance and were purchased 1.1.X8 ► no sales of fixed assets have been made prior to 1.1.X9. On 1.7.X9 part of the premises, cost £15,000, was sold for £25,000. These sale proceeds have been credited to capital account ► drawings includes the purchase of a second-hand van for £5,000 on 1.2.X9. This van is used solely for business purposes ► bad debts to be written off as at 31.12.X9 amount to £120 and bad debts provi¬ sion is to be set at 25% of debtors after writing off bad debts ► depreciation is to be provided on the basis of a full year’s charge in the year of purchase of the asset but none in the year of sale of the asset.
You are required to prepare a profit and loss account for the year ended 31.12.X9 and a balance sheet as at that date for ATEC.

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Dr Cr Sales Purchases Stock 1.1.X9 53,500 29,200 5,400 Office expenses 150 Electricity 700 Salaries and wages 12,100 Rates 600 Telephone 280 Other expenses 120 Premises 30,000 Rents received 550 Equipment 12,000 Vehicles 12,000 Provisions for depreciation: premises 4,200 equipment 8,400 vehicles 3,000 Drawings 16,000 Debtors and creditors 4,800 5,200 Provision for bad debts 90 Capital 1.1.X9 46,500 Bank 2,000 Cash 90 123,440 123,440