In each of the following situations, discuss whether the item would be included in the profit and loss account for the year to 31 December 1993 and at what amount. The business is that of a builder and builder's merchant.

(a) Sales of general building materials by the builder's merchant to third parties amounted to £26000 of which £24000 was received in cash by 31 December 1993 and the remainder was received in January 1994.

(b) Three house conversions were started and completed during the year at a price of £24 000 each. These amounts were received in full by 31 December 1993.

(c) One office conversion which had been 60% complete at the end of 1992 was completed in 1993 at a price of £40000. Invoices on account amounting to £24000 had been sent out in 1992.

(d) The building materials sold to third parties during the year had cost £14000 of which all but £1000 had been paid for by December 1993.

(e) The building materials used on the three houses referred to in

(b) had cost £18 000 and had all been paid for by December 1993.

(f) Wages paid in respect of the houses mentioned in

(b) amounted to £20 000 for the year.

(g) The costs relating to the office mentioned in

(c) were as follows:
Wages paid in 1992 Wages paid in 1993 Materials used in 1992 Materials used in 1993 £8000 £6000 £8000 £7000 (h) The storemen's wages in the yard amounted to £8000 for the year.
(i) The owner who worked full time in the business paid himself a salary of £9000 and also withdrew £1000 in cash from the business to pay a pressing personal debt.
(j) The motor expenses paid in the year were broken down as follows:
Annual road tax on three vans paid