Trader carries on a merchandising business. The following balances have been extracted from his books on 30 September 20X3:

Capital -S. Trader, at 1 Oct 20X2.............................................24,239

Office furniture and equipment...................................................1,440

Cash drawings - S. trader.........................................................4,888

Inventories on hand - 1 Oct 20X2..............................................14,972

Purchases........................................................................167,760

Sales revenue...................................................................203,845

Rent................................................................................1,350

Light and heat.......................................................................475

Insurance............................................................................304

Salaries............................................................................6,352

Stationery and printing..............................................................737

Telephone and postage...........................................................517

General expenses.................................................................2,044

Travellers' commission and expenses.......................................9,925

Discounts allowed...............................................................517

Discounts received ..............................................................955

Bod debts written of............................................................331

Trade receivables............................................................19,100

Trade payables................................................................8,162

Balance at bank to S. trade's credit.......................................6,603

Petty cash in hand...............................................................29

Provision for doubtful debts..................................................143

The following further information is to be taken into account:

1. Inventories on hand on 30 September 20X3 were valued at £12,972.

2. Provision is to be made for the following liabilities and accrued expenses as at 30 September 20X3: rent £450; lighting and heating £136; travellers' commission and expenses £806; accountancy charges £252.

3. Provision for doubtful debts is to be raised to 3 per cent of the closing trade receivable balance.

4. Office furniture and equipment is to be depreciated by 10 per cent on book value.

5. Mr trader had removed inventory costing £ 112 for his own use during the year.

Required

a. Prepare a statement of profit and loss for the year ended 30 September 20X3 grouping the various expenses under suitable headings; and

b. A statement of financial position as at that date.