Trading account Sales1,420,000Opening inventory137,000Purchases914,000Carriage inwards1,770 Other revenues and expenses Income from repair services14,520Rent33,000Insurance4,650Advertising expense2,910Heating and lighting4,120Shop and office expenses36,000Salaries and wages49,705Discounts allowed3,650Carriage outwards3,234 Balance sheet accounts Fixtures and fittings at cost325,000Fixtures and fittings accumulated depreciation at 6 April 201960,000Motor vehicles at cost148,000Motor vehicles accumulated depreciation at 6 April 201951,600Receivables71,248Allowance for receivables (at 6 April 2019)3,100Bank19,200Payables49,325Loan50,000Capital144,000Drawings39,058 1,792,5451,792,545 The following information is relevant The closing inventory at 5 April 2020 is valued at 129,350 On 5 January 2020 Tommy sold a motor vehicle for 9,000 The customer was due to pay Tommy's Trailers on 5 April 2020 but had not paid at the year end Nothing regarding the disposal transaction has been recorded in the accounts This motor vehicle had been bought on 6 April 2017 for 16,000 On 5 October 2019, Tommy bought a new motor vehicle for 22,000 on cash terms Tommy mistakenly recorded the purchase in the accounts as DR Fixtures Fittings 22,000 CR Bank 22,000 Depreciation on motor vehicles is provided at 20 per annum using the reducing balance basis on a monthly pro rata basis Depreciation on fixtures and fittings is provided at 15 per annum on the straight line basis, assuming no residual value There were no purchases or disposals of fixtures and fittings during the year Tommy estimates that 2,280 due from customers will be irrecoverable and must be written off The allowance for receivables is to be set at 5 of net receivables at 5 April 2020 Rent includes a prepayment of 780 Insurance includes a prepayment of 960 The heating bill will arrive on 5 June 2020 and about 390 is expected to relate to the period until 5 April 2020 The long term loan is repayable in 10 years' time Interest payable on the loan is 7 and will be paid once per year Required a Prepare the income statement for Tommy's Trailers for the period ended 5 April 2020 Show your workings, including a full non current assets note b Prepare the balance sheet for Tommy's Trailers as at 5 April 2020 Show your workings

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Trading account: Sales1,420,000Opening inventory137,000Purchases914,000Carriage inwards1,770 Other revenues and expenses: Income from repair services14,520Rent33,000Insurance4,650Advertising expense2,910Heating and lighting4,120Shop and office expenses36,000Salaries and wages49,705Discounts allowed3,650Carriage outwards3,234 Balance sheet

Trading account:Sales1,420,000Opening inventory137,000Purchases914,000Carriage inwards1,770Other revenues and expenses:Income from repair services14,520Rent33,000Insurance4,650Advertising expense2,910Heating and lighting4,120Shop and office expenses36,000Salaries and wages49,705Discounts allowed3,650Carriage outwards3,234Balance sheet accounts:Fixtures and fittings at cost325,000Fixtures and fittings - accumulated depreciation at 6 April 201960,000Motor vehicles at cost148,000Motor vehicles - accumulated depreciation at 6 April 201951,600Receivables71,248Allowance for receivables (at 6 April 2019)3,100Bank19,200Payables49,325Loan50,000Capital144,000Drawings39,0581,792,5451,792,545

The following information is relevant.

The closing inventory at 5 April 2020 is valued at 129,350.
On 5 January 2020 Tommy sold a motor vehicle for 9,000. The customer was due to pay Tommy's Trailers on 5 April 2020 but had not paid at the year-end. Nothing regarding the disposal transaction has been recorded in the accounts. This motor vehicle had been bought on 6 April 2017 for 16,000.
On 5 October 2019, Tommy bought a new motor vehicle for 22,000 on cash terms. Tommy mistakenly recorded the purchase in the accounts as DR Fixtures & Fittings 22,000 / CR Bank 22,000.
Depreciation on motor vehicles is provided at 20% per annum using the reducing balance basis on a monthly pro-rata basis. Depreciation on fixtures and fittings is provided at 15% per annum on the straight line basis, assuming no residual value. There were no purchases or disposals of fixtures and fittings during the year.
Tommy estimates that 2,280 due from customers will be irrecoverable and must be written off.
The allowance for receivables is to be set at 5% of net receivables at 5 April 2020.
Rent includes a prepayment of 780.
Insurance includes a prepayment of 960.
The heating bill will arrive on 5 June 2020 and about 390 is expected to relate to the period until 5 April 2020.
The long-term loan is repayable in 10 years' time. Interest payable on the loan is 7% and will be paid once per year.

Required:

a.Prepare the income statement for Tommy's Trailers for the period ended 5 April 2020. Show your workings, including a full non-current assets note.
b.Prepare the balance sheet for Tommy's Trailers as at 5 April 2020. Show your workings.