Vivienne's assets and liabilities on 1 January 1999 were as follows:

Land and buildings £50,000; Equipment £10,000; Long-term bank loan

£20,000; Trade debtors £4,600; Trade creditors £6,320; Bank overdraft

£7,590; Prepaid business rates £400; Prepaid insurance £300; Accrued electricity £670; Accrued telephone £130; Stock of goods for resale £10,800.

In summary, her transactions for the year to 31 December 1999 were as follows (all payments and receipts were via the business bank account):

(a) Stock with a list price of £54,800 was bought on credit from suppliers who gave Vivienne a 2.5% trade discount. Some of Vivienne's suppliers also offered a discount for prompt payment. As a result, suppliers’

invoices totalling £52,330 were satisfied by payments of £49,560.

(b) Stock was sold on credit for £95,370. This includes a £1,000 sale which was made to a valued customer at a special low price (the normal price of the goods sold to the customer would have been £1,250). Vivienne offered her customers a 4% discount on the amount owing in return for prompt payment. Invoices totalling £45,800 were paid by customers who took advantage of this discount and invoices totalling a further £47,600 were paid by customers who were too late to enjoy the discount offered.

(c) Vivienne took stock costing £400 out of the business for her own use.

(d) The following payments (totalling £45,570) were made during the year:

- cost of having stock delivered from suppliers £2,670

- cost of having stock delivered to customers £3,200

- staff wages £11,800

- business rates (for the year to 31 March 2000) £1,800

- insurance (for the year to 30 June 2000) £700

- electricity £3,240

- telephone £1,630

- bank overdraft interest £790

- interest on long-term bank loan £1,240

- Vivienne's salary £10,000

- new business equipment £8,500.

(e) On 1 July 1999, Vivienne began subletting a part of her premises at an annual rental of £2,000. The tenant paid the first year's rent in advance on | July 1999, The cost of the closing stock on 31 December 1999 was £9,220. Accrued electricity and telephone charges at that date were estimated to be £760 and

£150 respectively. Depreciation of business equipment for the year is estimated at £3,700.

Required:

Prepare Vivienne's trading and profit and loss account for the year to 31 December 1999 and her balance sheet as at that date.