A Bell has kept records of his business transactions in a single entry form, but he did not realise that he had to record cash drawings. His bank account for the year 20X8 is as follows:

Records of cash paid were: Sundry expenses £180; Trade creditors £1,310. Cash sales amounted to £1,540.

The following information is also available:

You are to draw up a trading and profit and loss account for the year ended 31 December 20X8, and a balance sheet as at that date. Show all of your workings.

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Balance 1.1.20X8 Receipts from debtors Loan from F Tung £ 920 94,200 2,500 97,620 Cash withdrawn from bank Trade creditors Rent Insurance Drawings Sundry expenses Balance 31.12.20X8 £ 12,600 63,400 3,200 1,900 11,400 820 4,300 97,620