Then balance off the accounts and extracted a trial balance for sole trader B Moore. as at 30 September 2021:

Trial Balance as at30 September 2021

DR CR

Cash at bank 45,000

Cash in hand 6,800

Accounts receivable (Debtors) 8,000

Accounts payable (Creditors) 14,500

Inventory (Stock): 30 September 2020 18,000

Car 25,000

Drawings 7,500

Fixtures and Fittings 18,500

Sales 95,000

Purchases 110,000

Return inwards (Sales Returns) 3,500

Carriage inwards 890

Returns outwards (Purchase Returns) 720

Carriage outwards 500

Motor expenses 1,400

Rent 7,000

Telephone charges 830

Wages and salaries 14,000

Insurance 1030

Office expenses 800

Sundry expenses 250

Capital 158,780

269,000 269,000

Inventory as at 30 September 2021 was 13,000.

Required

a. Prepare an Income Statement for B Moore for the year ending 30th September 2021

b. The following table shows the profit/loss for B Moore profitable since year 2013.

Year 2013 2014 2015 2016 2017 2018 2019 2020 2021

Profit/Loss 55,800 77,100 85,500 98,400 87,600 97,200 112,400 (65,400) ?

Due to the coronavirus pandemic, comparing the above years Income Statements, explain whether you predict increase/decrease on the loss/profit of the year 2022.