Winston commence business on 1July 2006. The following is his trial balance was extracted from his books of accounts at 30th June 2007

Particulars Dr Cr

Capital 3000

Cash 500

Drawings 4000

Creditors 1500

Debtors 3000

Motor car at Cost 5000

Office Expenses 8000

Purchases 14000

Sales 30000

34500 34500

Additional information

1. Stock at 30 June 2007:$2000

2. The motor car is to be depreciation at a rate of 20 percent annum on cost; it was purchased on 1 July 2006.

Required

Prepare Winstons Trading and Profit and loss account for the year to 30th June 2007 and a balance sheet as at that date.