A From the following balances in the books of Breaker plc you are to draw up (i) a detailed income statement for the year ending 31 March 2013 for internal use, and (ii) an income statement for publication: ..... £

Plant and machinery, at cost (see Note (c)) ..... 105,000 Bank interest receivable ..... 3,000 Discounts allowed ..... 7,000 Discounts received ..... 6,000 Hire of motor vehicles: Sales and distribution ..... 14,000 Hire of motor vehicles: Administrative ..... 5,000 Licence fees receivable ..... 13,000 General distribution expenses ..... 26,000 General administrative expenses ..... 19,000 Wages and salaries: Sales and distribution ..... 177,000 Administrative ..... 98,000 Directors' remuneration ..... 41,000 Motor expenses (see Note (e)) ..... 11,000 Ordinary dividend paid ..... 80,000 Inventory 31 March 2012 ..... 208,000 Revenue $1,450,000$

Purchases ..... 700,000 Returns outwards ..... 22,000 Returns inwards ..... 29,000 Retained profits as at 31 March 2012 ..... 88,000

\section*{Notes:}

(a) Inventory at 31 March $2013 £ 230,000$.

(b) Accrue auditor's remuneration $£ 8,000$.

(c) Of the plant and machinery, $£ 70,000$ is distributive in nature, while $£ 35,000$ is for administration.

(d) Depreciate plant and machinery $25 \%$ on cost.

(e) Of the motor expenses, $4 / 5$ are for sales and distribution and $1 / 5$ for administration.

(f) Corporation tax on ordinary profits is estimated at $£ 143,000$.

(g) A sum of $£ 25,000$ is to be transferred to general reserve.