Robin does not keep a full set of accounting records but is able to provide the following information. 

 

During the year, Robin's drawings totalled $32 000. However, on 1 August 2014, Robin transferred $15 500 from his private account to the business's bank account.

Prepare statements of affairs at 1 January and 31 December 2014 to calculate the opening and closing capitals. Calculate the profit or loss for the year ended 31 December 2014.

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1 Jan 2014 31 Dec 2014 $ $ Premises 160 000 155 000 Vehicles 14 000 12 000 Machinery 4 500 6 000 Inventory 18 000 16 500 Trade receivables 19 000 14 000 Other receivables 1 200 2 500 Other payables 4 000 3 000 Loan 9 300 7 600 Trade payables 11 500 12 900 Bank overdraft 3 500 Bank balance 8 500