3.8 Norbert runs a small wholesaling business, selling imported Italian coffee machines to retailers. His business is run from a small warehouse with an office at the side on an industrial estate on the edge of a large city. The industrial estate is largely deserted at night and the crime rate is high for theft and criminal damage. Norbert has recently joined a scheme run by the local authority on behalf of tenants of its industrial units; he pays an annual contribution to a fund which pays for improved lighting and security patrols.

Norbert’s accounting year-end is 31 March. He provides you with a list of figures relating to the most recent year which ended on 31 March 20X3. You are required to prepare a statement of profit or loss and a statement of financial position from the figures.

£
Delivery vehicle 5,020 Revenue for the year 351,777 Staff costs: storeman’s wages 12,090 Electricity 2,821 Cash at bank 3,444 Capital at 1 April 20X2 18,011 Administrative costs 3,810 Opening inventory at 1 April 20X2 20,762 Non-current assets in warehouse and office 3,900 Drawings 25,219 Sundry expenses 1,406 Warehouse and office rental 10,509 Insurance 3,909 Trade receivables 36,623 Water rates 1,226 Security services charge 2,937 Purchases 255,255 Bank charges 398 Trade payables 31,950 Delivery expenses 8,630 Part-time admin assistant’s wages 3,779 Norbert counted and valued the coffee machines on the premises at the 31 March 20X3. The total value was £22,446. Prepare the statement of profit or loss and statement of financial position for Norbert’s business for the accounting year ended 31 March 20X3.