Prepare the profit and loss account for Top-to-Toe for the year ending 31 December 1988

Rob Walters has a business called Walters Watches which has the following items in its balance sheet as at 31 March 1998:

                                    £

Capital                        85,000

Creditors                      5,000

Bank loan                    15,000

Fixtures and !Rungs    45,000

Stocks                          24.000

Debtors                        17,000

Bank balance                19,000

During the first week of April. the business:
• bought more stock on credit for £7 ,000;

• repaid the bank loan in full;

• collected a cheque for £7 ,000 from a debtor;

• bought more fixtures and fittings, paying £5,000 for them by cheque;

• paid one of its creditors £3,000 by cheque.