From the following trial balance of B. Morse drawn-up on conclusion of his first year in business, draw up an income statement for the year ending 31 December 2013. A statement of financial position is not required.

Inventory at 31 December 2013 was £14,486.

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Trial balance as at 31 December 2013 Dr General expenses Business rates Motor expenses Salaries Insurance Purchases Sales Car Accounts payable Accounts receivable Premises Cash at bank Cash in hand Capital Drawings 305 2,400 910 39,560 1,240 121,040 4,300 21,080 53,000 2,715 325 23,400 270,275 Cr 3 235,812 11,200 23,263 270,275