On 1 May 2015 Jenny Barnes, who is a retailer, had the following balances in her books: Premises £70,000; Equipment £8,200; Vehicles £5,100; Inventory £9,500; Trade accounts receivable £150.

Jenny does not keep proper books of account, but bank statements covering the 12 months from 1 May 2015 to 30 April 2016 were obtained from the bank and summarized as follows;

It has been discovered that, in the year ending 30 April 2016, the owner had paid into the bank all shop takings apart from cash used to pay (1) £408 miscellaneous expenses and (2) £500 per month drawings.
At 30 April 2016: £7,600 was owing to suppliers for inventory bought on credit. The amount owed by trade accounts receivable is to be treated as a bad debt. Assume that there had been no sales on credit during the year. Inventory was valued at £13,620. Depreciation for the year was calculated at £720 (equipment) and £1,000 (vehicles).
You are asked to prepare a statement of profit or loss for the year ending 30 April 2016. (Show all necessary workings separately.)

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4 Money paid into bank: Extra capital Shop takings 8,000 96,500 Received from debtors 1,400 Payments made by cheque: Paid for inventory purchased 70,500 Purchase of delivery van 6,200 Vehicle running expenses 1,020 Lighting and heating Sales assistants' wages Miscellaneous expenses 940 5,260 962