Financial Statements : Income Statement $+$ Balance Sheet $($Level $1)$

$7\mathrm{.}1$ From the following trial balance of I. Lamb, extracted after one year's trading, prepare a statement of profit or loss for the year ending $31$ October $2016.$ A statement of financial position is not required.

$\backslash$table$[[$Trial balance as at $31$ October $2016],[,$Dr$,$Cr$],[,,$f$],[$Sales$,,100,250],[$Purchases$,60,400,],[$Salaries$,29,300,],[$Motor expenses,$1,200,],[$Rent$,950,],[$Insurance$,150,],[$General expenses,$85,],[$Premises$,47,800,],[$Motor vehicles,$8,600,],[$Accounts receivable,$13,400,],[$Accounts payable,,$8,800],[$Cash at bank,$8,200,],[$Cash in hand,$300,],[$Drawings$,4,200,],[$Capital$,,65,535],[,174,585,174,585]]$

Inventory at $31$ December $2016$ was $15,600.$

$($Keep your answer; it will be used later in Review Question $8\mathrm{.}1.)$

$8\mathrm{.}1$ Return to Review Question $7\mathrm{.}1$ and prepare a statement of financial position as at $310$ ctober $2016.$