From the following trial balance of T angle, extracted after one year of operations, prepare a statement of profit or loss for the year ending 30 April 2016, together with a statement of financial position as at that date.

Inventory on 30 April 2016 was £8,000.

Inventory on 30 April 2016 was £8,000.

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Sales 71,600 Purchases Salaries Motor expenses 29,050 4,650 1,860 Rent and business rates Insurances - building - vehicles 2,500 1,500 2,400 Motor vehicles 20,000 Fixtures 35,000 Cash in hand 1,000 Cash at bank 2,500 Drawings 24,000 Long-term loan 30,000 Capital 38,500 Accounts receivable 23,450 Accounts payable 19,500 162,500 162,500