From the following historical cost accounts of Page pic, prepare a set of CPP accounts for the year-ended 31.12.8.

Assume all sales, purchases and expenses accrue evenly throughout the year.

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31.12.7 31.128 Fixed assets Cost (purchased 1.1.5) less depreciation 500 300 200 500 400 100 Current assets Inventory (ourchased 31.10) Debtors 100 200 150 450 300 150 300 350 800 400 less Current liabilities 150 350 100 250 350 400 500 100 400 500 Share capital Reserves Profit and loss account for the year-ended 31 December year 8: Sales Cost of goods sold Opening inventory Purchases 1 850 100 1350 1 450 150 Less closing inventory 1 300 550 Gross profit Expenses Depreciation 300 100 400 Net profit The movement on the retail price index has been as folows 1Jnnuary year 5 t January year 7 Average for year 7 31 October year 7 31 December year 7 Average for year 8 31 October year 8 31 December year B 180 200 210 215 220 230 235 240