Shop rental. Keith is appalled at the level of shop rental he pays for a very small unit in the town centre. Under his lease arrangement his rental was due to increase on 1 January 20X9; it increased from £17 400 to £25 750 for the year. As a result Keith has had to increase his prices to customers.

Other premises costs.

These include the following

£
Business rates 2 998 Gas 986 Electricity 1 351 Insurance 1 850 Sundry shop supplies 96 • Administrative and financial expenses. The helpful Penny keeps the books of the business, so Keith saves on accountants' fees. He pays the accountant £375 for tax advice. He has also paid a solicitor £220 for advice about resisting the rent increase. Keith has paid bank charges during the year of £360 and bank interest of £284. Phone bills total £382 for the year, stationery was £35 and office sundries were £93.
Keith's sales for the year are £183 600 on which he has made gross profit of £88128. Draw up Keith's profit and loss account for the year ending 31 December 20X9.