The following are summaries of the cash book and bank accounts of J. Duncan who does not keep his books using the double entry system.

You are required to:

(a) Calculate the value of J. Duncan's capital on 1 January 2015.

(b) Prepare the Statement of Profit or Loss for the year ending 31 December 2015.

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Bank Summary Balance on 1 January 2015 Receipts Accounts receivable Cash banked E 8,000 26,000 4,100 30,100 38,100 Payments Trade accounts payable 18,500 Rent 1,400 Machinery 7,500 Wages 6,100 Insurance 1,450 Accounts receivable (dishonoured cheque) 250 Loan interest 300 35,500 Balance on 31 December 2015 2,600 Cash Summary Balance on 1 January 2015 300 Receipts Cash sales Accounts receivable Payments Drawings Repairs Electricity Cash banked Balance on 31 December 2015 The following referred to 2015 Bad debts written-off Discount received Goods withdrawn by J. Duncan for own use Credit note issued 14,000 400 14,400 14,700 9,500 300 750 4,100 14,650 50 400 350 300 1,200