Sarah has been in business for some years. Her trial balance at 31 December 20X2 was as follows: Dr…

Sarah has been in business for some years. Her trial balance at 31 December 20X2 was as follows:

 

 

Dr

Cr

 

£000

£000

Cash at bank

6

 

Buildings

50

 

Capital

 

50

Creditors

 

24

Debtors

30

 

Stock

15

 

Drawings

40

 

Heating and lighting

10

 

Other expenses

25

 

Cost of goods sold

200

 

Sales

 

400

Wages and salaries

Required: Prepare Sarah’s profit and loss account for the year ended 31 December 20X2 and her balance sheet as at that date.