Michael Atisse, a carpenter, has the following trial balance as at 31 December 2012.

You have the following additional information.

1. Closing inventory of tools £4,500 2. Depreciation is to be written off the property, plant and equipment as follows:

Required:

Prepare M. Atisse’s income statement for the year ended 31 December 2012 and the statement of financial position as at 31 December 2012.

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Debit Credit Work done 50,000 Purchases of materials 25,000 Opening inventory of tools 650 Motor expenses 3,550 Trade receivables 1,000 Trade payables 4,000 Cash at bank 3,600 Long-term loan 16,800 Building at cost 52,300 Motor car at cost 8,000 Computer at cost 6,300 Office equipment at cost 10,200 Business rates 1,300 Electricity 900