J. White, a sole trader, has produced the following statements of financial position for the years ended 31 March 20X2 and 31 March 20X3.

J. White is unable to understand why, after he has made a profit for the year ended 31 March 20X3 of £5,800, his bank balance has fallen by £6,500.
Required
Prepare a report explaining how this has occurred.

J. White Statements of financial position as at 31 March Non-current assets Freehold premises Depreciation to date Depreciation to date 1,200 1,000 (750) 140C400 EQUITY AND LIABILITIES 11000 4500 6,500 (3,200 5,200 Current liabilitie Total liobilities Total equity and liabilities