From the following trial balance of I. Lamb, extracted after one year's trading, prepare a statement of profit or loss for the year ending 31 October 2016. A statement of financial position is not required.

Trial balance as at 31 October 2016 Dr Cr

Sales 100,250 Purchases 60,400 Salaries 29,300 Motor expenses 1,200 Rent 950 Insurance 150 General expenses 85 Premises 47,800 Motor vehicles 8,600 Accounts receivable 13,400 Accounts payable 8,800 Cash at bank 8,200 Cash in hand 300 Drawings 4,200 Capital 65,535

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174,585 174,585

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Inventory at 31 December 2016 was 15,600.