The following information was extracted from the accounting records of Concordia Stores:

/983

£

30000 19000 5000

/982

£

25000 22000 3500

/98/

£

Sales to customers 20 000 Purchases at cost 15000 Operating expenses 3000 Closing stocks were valued as follows :

1980 £9000 1981 £11000 1982 £14000 1983 £12000

(a) Prepare summarised annual income statements for 1981, 1982 and 1983.

(b) In 1984 it was discovered that the following errors had occurred in the 1981 and 1982 stock counts:

1981 closing stock should have been £ 12500 1982 closing stock should have been £13500 Prepare adjustments in the form ofjournal entries to revise the annual profits calculated in

(a) above to the correct figures.