Peter Roger, who owns and operates a retail outlet, has extracted the year-end Trial Balance from the books of his business as shown. He explains that all amounts stated have been rounded off to the nearest thousand pounds sterling as £’000 and that he has reported as a single amount the cash in hand as well as the balance at bank. He informs you further that:

(i) He has no unsold goods remaining in hand by the year-end;

(ii) He has no expenses remaining unpaid; and

(iii) He does not wish to depreciate furniture.

Required:

Prepare the Statement of income for the year ended 31 December 2010 and the Statement of financial position as at that date.

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Trial Balance as at 31 December 2010 Credit Furniture a/c Telephone a/c Cash & bank a/c Sales a/c Rent a/c Purchases a/c Advertising a/c Stationeries a/c Staff salaries a/c Capital a/c Debit £'000 120 10 23 - 12 148 14 6 46 379 £'000 299 80 379