Justin is a sole trader and has just completed his first year of trading. You have been asked to assist him with the preparation of the first years accounts to 30th November 2016. The following information has been provided.

On the 1st December 2015 Justin injected 5,000 of capital into the business

At the same date a business loan of 2,000 was agreed with the bank. The interest on the loan of 10% is payable annually in arrears with the full 2,000 repayable in 5 years.

Justin withdrew cash from the business account to purchase a van at a cost of 4,000.

Justin used his personal debit card to purchase 1,000 of inventory.

During the year Justin recorded total sales of 49,000 and incurred costs of 25,600.

Of these costs 1,120 relates to van insurance, which relates to the 14 months to 21st January 2017.

As at 30th November Justin believes he is still owed 3,500 in respect of services provided and believes the business owes its creditors 2,630.

The equipment purchased during the year is to be classified as revenue expenditure and the depreciation is charged on the van on a straight line basis over 5 years, with full year being charged in the year of acquisition and non in the year of disposal.

At the end of the year Justin has a small amount of inventory valued at 950.

Justin believes a 5% general provision against doubtful debts would be prudent. He has not yet received a bill for the ban service which he believes will be approximately 120.

Each month Justin has withdrawn 1,500 from the business bank account as his salary. This has not been recorded in any of the above.

Required

Prepare the statement of profit and loss and the statement of financial position for Justins sole trader business for the 12 months ended 30th November 2016.