From the following selected balances of Borough plc as at 31 December 2014, prepare (i) a detailed income statement for the year ended 31 December 2014 for internal use and (ii) an income statement for the same period for publication.

$£ 000$ s Inventory 1 January 2014 ..... 280 Revenue ..... 3,720 Purchases ..... 2,280 Carriage inwards ..... 16 Returns inwards ..... 18 Returns outwards ..... 10 Discounts allowed ..... 22 Discounts received ..... 28 Wages (putting goods into saleable condition) ..... 176 Salaries and wages: Sales and distribution staff ..... 124 Salaries and wages: Administrative staff ..... 148 Motor expenses (see Note (c)) ..... 48 Rent and business rates (see Note (d)) ..... 60 Investments in associates (market value $£ 148,000$ ) ..... 200 Income from associates ..... 10 General distribution expenses ..... 24 General administrative expenses ..... 12 Bad debts ..... 4 Interest from government securities ..... 6 Haulage costs: Distribution Loan-note interest payable ..... 4 Retained profits 31 December 2013 ..... 188 Motor vehicles at cost: Distribution and sales ..... 120 Administrative ..... 52 Plant and machinery at cost: Distribution and sales ..... 100 Administrative ..... 60 Production ..... 120 Directors' remuneration ..... 72 Dividends paid ..... 120 Notes:

(a) The production department puts goods bought into a saleable condition.

(b) Inventory at 31 December $2014 £ 320,000$

(c) Apportion motor expenses: distribution $3 / 4$, administrative $1 / 4$.

(d) Apportion rent and business rates: distribution $40 \%$, administrative $60 \%$.

(e) Write $£ 52,000$ off the value of investments in undertakings in which the company has a participating interest.

(f) Depreciate motor vehicles $25 \%$ on cost, plant and machinery $15 \%$ on cost.

(g) Accrue auditors' remuneration $£ 28,000$.

(h) Accrue corporation tax on ordinary activity profits $£ 208,000$.

(i) A sum of $£ 50,000$ is to be transferred to loan-note redemption reserve.