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 2011 is as follows:

Records of cash paid were: Sundry expenses £180; Trade accounts payable £1,310. Cash sales amounted to £1,540. The following information is also available:

You are to draw up an income statement for the year ending 31 December 2011, and a statement of financial position as at that date. Show all of your workings.

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Balance 1.1.2011 Receipts from debtors Loan from F. Tung 920 94,200 2,500 97,620 Cash withdrawn from bank Trade accounts payable Rent Insurance Drawings Sundry expenses Balance 31.12.2011 12,600 63,400 3,200 1,900 11,400 820 4,300 97,620