B. Barnes is a dealer who has not kept proper books of account. At 31 October 2016 his state of affairs was as follows:
|
|
£
|
|
Cash
|
210
|
|
Bank Balance
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4,700
|
|
Fixtures
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2,800
|
|
Inventory
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18,200
|
|
Accounts receivable
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26,600
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|
Accounts payable
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12,700
|
|
Van (at valuation)
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6,800
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During the year to 31 October 2017 his drawings amounted to £32,200. Winnings from the Lottery of £7,600 were put into the business. Extra fixtures were bought for £900.
At 31 October 2017 his assets and liabilities were: Cash £190; Bank overdraft £1,810; Inventory £23,900; Accounts payable for goods £9,100; Accounts payable for expenses £320; Fixtures to be depreciated £370; Van to be valued at £5,440; Accounts receivable £29,400; Prepaid expenses £460.
Draw up a statement showing the profit or loss made by Barnes for the year ending 31 October 2017.