The trial balance of Mary Rushen’s business as at 30 June year 5 was as follows.

Adjustments 

a. Closing inventory as at 30 June year 5 amounted to £7,000.

b. Depreciation is to be provided on freehold buildings on a straight-line basis at 2.5 per cent per annum.

c. Depreciation is to be provided on the fixtures and fittings on a straight-line basis at 10 per cent per annum.

Prepare an income statement for the year ended 30 June year 5, and a statement of financial position as at that date.

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Capital as at 30 June year 4 3 238,200 Cash and bank 7,400 Fixtures and fittings at cost 44,000 Freehold buildings at cost 400,000 General expenses 13,000 Inventory at 30 June year 4 12,000 Payables 18,000 Provision for depreciation on freehold buildings as at 30 June year 4 80,000 Provision for depreciation on fixtures and fittings as at 30 June year 4 30,800 Purchases 155,000 Receivables 8,000 Repairs and maintenance 10,600 Sales revenue Wages 320,000 37,000 687,000 687,000