J. Wright, a sole trader, extracted the following trial balance from his books at the close of business on 31 March 2016:

Required:
Prepare the statement of profit or loss for the year ending 31 March 2016 together with a statement of financial position as at that date.

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Dr Cr Purchases and sales 61,420 127,245 Inventory 1 April 2015 7,940 Capital 1 April 2015 25,200 Bank overdraft 2,490 Cash Discounts Returns inwards Returns outwards Carriage outwards 140 2,480 62 3,486 1,356 3,210 Rent and insurance 8,870 Allowance for doubtful debts 630 Fixtures and fittings 1,900 Van 5,600 Accounts receivable and accounts payable 12,418 11,400 Drawings 21,400 Wages and salaries 39,200 General office expenses 319 168,383 168,383