The Carpet Store extracted its Trial Balance on the last day of its accounting period as stated.You are informed as follows:

(a) A housing loan of £20,000 given to the Store Manager on 1 November 2011 is being recovered from his pay at £400 per month, commencing from November pay. The recoveries have not been accounted for.

(b) Staff salary has been accounted for merely by posting to that account the net salary paid to staff.

(c) Reported as National Insurance is the amount remitted. The National Insurance contribution at 8% of gross pay is deducted on the pay-sheet and the employer’s contribution is 10%.

Required: Set out the Statement of income for the year ended 31 March 2012 and the Statement of financial position as at that date.

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Trial Balance as at 31 March 2012 Non-current assets Inventory - 31.3.2012 Staff salaries Receivables/payables Other admin expenses Cost of sales National Insurance Sales Loan to manager Distribution costs Capital account Cash and bank £'000 660 614 320 512 486 3,642 56 20 263 - 23 6,596 £'000 238 468 - 4,990 - 900 -- 6,596