The following information has been gathered from the accounting records of Pets Parlour:

46 Part 1 A conceptual framework: setting the scene Assets and liabilities at 31 December Year 4

£

Cash at bank 500 Borrowings 6,000 Trade receivables (debtors) 5,000 Property, plant and equipment 29,000 Revenue and expenses for the year ended 31 December Year 4

£

Fees charged for work done 20,000 Interest paid on borrowings 1,000 Administration costs incurred 1,500 Salaries paid to employees 14,000 Required Using the accounting equation, calculate:

(a) The amount of ownership interest at 31 December Year 4.

(b) The amount of net profit for the year.

(c) The amount of the ownership interest at 1 January Year 4.

AppendixLO1