You are the assistant accountant with BEST EVER Ltd.Your boss has asked you to prepare the draft  Income Statement,Statement of Financial Position and Statement of

Changes in Equity for the year ended 31December 2014,for internal use,based on

the following Trial Balance (extracted from the computerized record keeping system)

and the additional information shown below.

The company’s authorized share capital is as follows:

l 2,000,000 Ordinary Shares of £1 each

l 1,500,000 7% Preference Shares of £1 each

DR CR

£000 £000

Profit & Loss Account (1 January 2014) 182

Revenue 5,250

Purchases 3,600

Inventory 220

Debtors 40

Creditors 38

Wages & Salaries 720

Administrative Expenses 540

Auditor’s fees 26

Heating & Lighting 43

Rent & Rates 137

Premises 2700

FixtureandFittings(NBV@31/12/2013) 730

MotorVehicles(NBV@31/12/2013) 380

Provision for Depreciation (1 January 2014)

Fixtures & Fittings 146

Motor Vehicles 152

Ordinary Share Capital 2,000

7% Preference Share Capital 1,500

General Reserve 300

Cashandcashequivalents 432

9,668 9,668
<pclass=”msonormal” style=”margin-bottom: 0.0001pt; line-height: 11.1pt;”>Additional Information

1 Clerical and management staff we reawarded a bonus amounting to£4,000   in

mid-December2014.This bonus has not been paid yet andit should be

classifiedasanadministrativeexpense.

2 Rent & Rates include £8,000 which relates to the coming year.

3 Closing inventory at 31 December 2014 was valued at £280,000.

4 It is estimated that corporation tax of £8,000  will  bepayable on the profits for the year.

5 Preference Dividend should for the year should be provided in full.

6 An Ordinary Dividend of 15p per share is proposed.

7 Thedirectorsproposetoprovideforthe depreciation of non-current assets for the

yea as follows:

Fixtures and Fittings @ the rate of 20% per annum using the straight-line method

MotorVehicles @ the rate of 20% per annum using the straight-line method

8 Transfer £8,000 to the General Reserve.