Z Ltd purchased a retail store and commenced business on April 1. From the following information, you are required to prepare in as much details as possible, a trading and profit and loss account for the current year ended March 31 and a balance sheet as at the date.

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Capital introduced on April 1 Drawings during the year Working capital (current assets less current liabilities) at March 31 Depreciation of fixed assets during the year, based on a rate of 20 per cent per annum on cost Ratio of annual sales to year-end values of fixed assets plus working capital Ratio of current assets to current liabilities at the year-end 47,000 5,000 23,000 3,000 2:1 2:1