From the following trial balance and additional information construct an income statement for the year ended 31 July 2017 and a balance sheet as at that date.

K Atkinson Trial balance as at 31 July 2017

Dr £

Cr £

Sales

168,000

Purchases

75,000

Opening inventory

11,000

Property

200,000

Machinery

28,000

Debtors

7850

Creditors

5,670

General expenses

5,400

Maintenance expenses

8,900

Wages

35,000

Office expenses

5,470

Provision for depreciation on property

5,500

Provision for depreciation on machinery

11,000

Provision for doubtful debts

250

Capital

148,000

Drawings

17,500

Bank

4,300

Loan

60,000

398,420

398,420

Additional information:

1Inventory as at 31 July 2017 is valued at £19,800.

2Depreciation is to be provided on cost at the following rates:

aProperty2%

bMachinery20%.

3Wages still owing as at 31 July 2017 were £2,400.

4Maintenance prepaid as at 31 July 2017 was £450.

5The provision for doubtful debts is to be maintained at 4% of debtors.