From the following trial balance and additional information construct an income statement for the year ended 31 March 2016 and a balance sheet as at that date.

Additional information:

(a) Inventory as at 31 March was valued at £6,790.

(b) As at 31 March 2016 the following balances were prepaid:
i Office expenses £450 ii Insurance £260.

(c) Depreciation is to be provided for as follows:
i Premises: 2% on cost ii Vehicles: 20% on reducing balance.

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Sales Purchases Opening inventory Premises Vehicles Debtors Creditors Returns inwards Returns outwards General expenses K Emery Trial balance as at 31 March 2016 Office expenses Wages Insurance Provision for depreciation on premises Provision for depreciation on vehicles Capital Drawings Bank Dr 65,620 4,232 85,000 11,200 3,453 328 1,897 2,310 14,600 880 13,200 202,720 Cr 92,300 5,981 209 12,000 4,500 85,000 2,730 202.720