A Jon Frank Ltd has just finished its second year of trading to 31 December 2013. Balances from Question 8.1 need to be brought forward into this question. Tax rates are the same as for 2012.

The following information is available:

(i) The proposed final dividend for 2012 (see Review Question 8.1) was paid on 31 January 2013.

(ii) Shares in Greemantle Ltd were bought on 1 January 2013. A dividend of $£ 8,400$ was received on 30 September 2013.

(iii) Loan notes in Greemantle Ltd were bought on 1 July 2013. Loan-note interest of $£ 16,800$ (net) was received on 31 December 2013.

(iv) Loan-note interest of $£ 28,000$ (net) was paid by Jon Frank Ltd on 31 December 2013.

(v) Income tax owing to the Revenue and Customs for 2013 was not paid until 2014. The 2012 income tax was paid on 30 January 2013.

(vi) An interim dividend of $5 \%$ on 1.6 million $£ 1$ ordinary shares was paid on 10 July 2013.

(vii) A final dividend of $9 \%$ was proposed for the year.

(viii) Depreciation of $£ 180,000$ was charged. Capital allowances were $£ 240,000$.

(ix) Net trading profit (before taking into account (ii), (iii), and (iv)) was $£ 1,080,000$.

(x) The corporation tax due for 2012 was paid on 1 October 2013. Corporation tax for the year to 31 December 2013 is expected to be $£ 320,000$.

\section*{You are required to:}

(a) Draw up the double entry accounts recording the above (except bank).

(b) Show the relevant extracts from the income statement for the year and statement of financial position at the year end.