The following balances were extracted from the books of Mr Try, a window cleaner. He has no knowledge of double entry bookkeeping but records everything correctly. His year end is 30 June and the following balances relate to the year ended 30 June 2017:

He has not included the following items as he is not sure how to record them:
(1) Bank charges of £45 are to be levied for the year - they are to be processed by the bank in September 2017.
(2) Insurances have been prepaid by £50.
(3) None of the amounts owed by customers can be realistically recovered but Mr Try wants to keep on trying and therefore wants a provision to be made of 50 per cent of the balances.
(4) Accountancy charges for the current year ended 2017 are to be £275.
(5) The ladders, including the ones bought in the year, will only last until the end of 2018 and are to be depreciated using the straight line method with no residual value.

Required:

(a) Prepare a statement of profit or loss for the year ending 30 June 2017.

(b) Prepare a statement of financial position at that date.

(c) Mr Try has heard about a treatment of non-current assets which he thinks is 'consumables'. He wonders if his ladders could be treated as consumables and not depreciated. Write a letter to Mr Try, using fictitious names and addresses, to answer his query.

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Accounts to be paid Cleaning income Cash balance Own wages Ladders and equipment Repairs to customers' houses due to damage Miscellaneous expenses Owed by customers Insurances Accountancy fees (relating to 2016- paid in this year) Postage and stationery Bank Cleaning materials and cloths 100 17,644 35 10,600 750 230 110 220 350 250 50 2,345 3,400