The following balances have been extracted from the books of Mitchell plc on 31 July 2016. From

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The following balances have been extracted from the books of Mitchell plc on 31 July 2016. From them draw up (i) a detailed statement of profit or loss for internal use, for the year ending 31 July 2016, also (ii) a statement of profit or loss for publication for the year to that date.

(a) Inventory at 31 July 2016 £303,000.
(b) The hire of plant and machinery is to be apportioned: productive £12,000, administrative £2,000.
(c) Rent and business rates to be apportioned: distribution 3/4, administrative 1/4.
(d) Motors are to be depreciated at 33 1/3% on cost; plant and machinery to be depreciated at 10% on cost.
(e) Auditors’ remuneration of £15,000 to be accrued.
(f) Corporation tax on profit from ordinary activities for the year is estimated at £29,000, excluding tax on disposal of investments.
(g) Transfer £50,000 to general reserve.

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