Sol Jensen provides the following trial balance extracted from his books of account on 31 December 20*8:

Additional information at 31 December 20*8:

stock was valued at £18,593; loan interest owing £250; office expenses owing £329; rates paid in advance £183; insurance paid in advance £465.

Required

Prepare:

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

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Sales Purchases Returns inwards Returns outwards Stock 1 January 20*8 Carriage inwards Carriage outwards Wages Drawings Rent and rates Advertising Loan interest Insurance Office expenses General expenses Premises at cost Office equipment at cost Debtors Creditors Bank balance Cash in hand Capital Long-term bank loan Dr £ 116,754 453 20,064 2,431 1,342 78,549 24,650 4,352 2,649 1,250 4,380 5,672 12,879 72,500 24,000 18,901 345 476 391,647 Cr 211,901 509 8,005 126,232 45,000 391,647