On 1 April 20X2 Modern Dwellings Ltd commenced business as builders and contractors. It spent £14,000 on the purchase of six acres of land with the intention of dividing the land into plots and building 72 houses thereon.

During the year ended 31 March 20X3 roads and drains were constructed for the project at a total cost of £8,320. Building was commenced, and on 31 March 20X3 30 houses had been completed and eight were in the course of construction.

During the year the outlay on houses was as follows:

............................................................... £

Materials, etc ............................. 36,000

Labour and Subcontracting ............ 45,000

The value of the work-in-progress on the uncompleted houses at 31 March 20X3 amounted to £8,500, being calculated on the actual cost of materials, labour and subcontracting to date.

During the year, 24 houses had been sold, realizing £80,000.

Required

Prepare a statement of profit and loss for the year ended 31 March 20X3. It can be assumed that the plots on which the 72 houses are to be built are all of equal size and value?