Madigan & Co. is the trading name of Basil Madigan, a chartered accountant. He runs a small city centre office employing a part-qualified accountant as an assistant and a secretary, both on a full-time basis.

In the year to 31 March 20X5 fees from Madigan’s clients total £95 311. The assistant’s salary is £19 300 and the secretary is paid £11 150. Basil's one-room office is in a run-down office building at a comparatively low rental of £10 310, which includes energy costs and business rates. There is also an annual service charge (to cover repairs, caretaking and so on) which this year comes to £3790.

Basil pays general insurance of £794, plus professional indemnity insurance (Pll)

of £1250. Subscriptions and professional registration charges are £952. Business travel expenses (mileage claims for use of own car by himself and his assistant)

come to £1863. Entertainment is £342.

78 19 CHAPTER 7 THE PROFIT AND LOSS ACCOUNT Telephone charges are £1103 for the year and other administration charges are £1575. Stationery is £761 and sundry expenses total £715. Basil has made donations to local charities out of the business account to the sum of £120.

Prepare the profit and loss account for Madigan & Co. for the year ending 31 March 20X5.