The following trial balance was extracted from the books of R Giggs at the close of business on 28 February 20X7. Dr Cr £ £ Purchases and sales 92,800 157,165 Cash at bank 4,100 Cash in hand 324...

The following trial balance was extracted from the books of R Giggs at the close of business
on 28 February 20X7.

Dr Cr
£ £
Purchases and sales 92,800 157,165
Cash at bank 4,100
Cash in hand 324
Capital account 1 March 20X6 11,400
Drawings 17,100
Office furniture 2,900
Rent 3,400
Wages and salaries 31,400
Discounts 820 160
Debtors and creditors 12,316 5,245
Stock 1 March 20X6 4,120
Provision for doubtful debts 1 March 20X6 405
Delivery van 3,750
Van running costs 615
Bad debts written off 730

174,375 174,375

Notes:
(a) Stock 28 February 20X7 £2,400.
(b) Wages and salaries accrued at 28 February 20X7 £340.
(c) Rent prepaid at 28 February 20X7 £230.
(d) Van running costs owing at 28 February 20X7 £72.
(e) Increase the provision for doubtful debts by £91.
(f ) Provide for depreciation as follows: Office furniture £380; Delivery van £1,250.
Required to prepare:
I. Income statement for the year ended 28 February 20X7
II Statement of financial position (Balance Sheet) as at 28 February 20X7