Julie Wreak provides the following trial balance extracted from her books of account on 31 May 20*8:

Additional information at 31 May 20*8:

stock was valued at £34,897; wages amounting to £6,238 had not been paid; £600 loan interest remains unpaid; the tenant owes £700 rent receivable; £562 insurance has been paid for the year ending 31 May 20*9; rates paid in advance amounts to £135.

Required

Prepare:

a) A trading and profit and loss account for the year ended 31 May 20*8
b) A balance sheet at 31 May 20*8.

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Capital Long-term loan Premises at cost Lorry at cost Office equipment at cost Drawings Purchases. Sales Returns inwards Returns outwards Carriage inwards Carriage outwards Wages Motor expenses Stationery Rent receivable Rates Insurance Loan interest Bank overdraft Cash in hand Stock 1 June 20*7 Trade debtors Trade creditors Dr £ 240,000 45,000 17,000 34,700 239,075 1,554 347 1,453 84,342 34,527 3,642 2,480 4,673 2,400 754 36,734 28,976 777,657 Cr £ 95,894 250,000 407,563 658 2,300 2,457 18,785 777,657