Kerry owns the concession to run a souvenir shop at a tourist location near London. She sells souvenir tea towels, cards, biscuits, and various toys and gifts. Kerry's sales for the year to 30 September 20X3 are £121 040. Her gross profit margin is 50%. The business expenses for the year are as follows;

• Staffing. The shop is open for ten months of the year with a very busy period from Easter to the end of August. During that period Kerry employs two members of staff at an hourly rate of £5 for as many hours as necessary. The time sheets for hours worked between April and August in 20X3 show the following monthly totals;

Hours worked April 120 May 160 June 210 July 280 August 280

• Premises. Kerry pays a basic rental of £18 000 per annum for the shop premises to the local authority, which owns the tourist attraction. In addition, she pays a variable contribution calculated at 5% of net profits after taking all other expenses into account. Premises costs other than rental total £4521 for the year.

• General and administration costs. These are as follows for the year ending 30 September 20X3;

£

Bookkeeping and accountancy fees 745 Telephone 415 Sundry charges 169 Insurance 1200 Prepare Kerry's profit and loss account for the year ending 30 September 20X3.