£7,600 was owing to suppliers for inventory bought on credit. The amount owed by trade accounts receivable is to be treated as a bad debt. Assume that there had been no sales on credit during the year. Inventory was valued at £13,620.
Depreciation for the year was calculated at £720 (equipment) and £1,000 (vehicles).
You are asked to prepare a statement of profit or loss for the year ending 30 April 2016. (Show all necessary workings separately.)