From the following selected balances of Filo plc as at 31 March 2005 draw up (i) a detailed income statement for internal use, and (i/) an income statement for publication.

(a) Inventory at 31 March 2005 £102,000.

(b) Wages and salaries are to be apportioned: Distribution costs '/4, Administrative expenses 7/.

(c) Rent and business rates are to be apportioned: Distribution costs 55%, Administrative expenses 45%.

(d) Apportion motor expenses in the proportions 2:3 between distribution costs and administrative expenses.

(e) Depreciate motor vehicles 20% and equipment 10% on cost.

(f) Accrue auditors’ remuneration of £11,000.
(g) Accrue corporation tax for the year on ordinary activity profits £364,000.
(h) A sum of £20,000 is to be transferred to general reserve.

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Retained profits as at 31 March 2004 102,000 Inventory 1 April 2004 84,000 Purchases Revenue Returns inwards Returns outwards 1,462,000 2,456,000 108,000 37,000 Carriage inwards 14,700 Wages and salaries (see Note (b)) 136,000 Rent and business rates (see Note (c)) 14,000 General distribution expenses 28,000 General administrative expenses 24,000 Discounts allowed 36,000 Bad debts Loan note interest 5,000 12,000 Motor expenses (see Note (d)) 16,000 Interest received on bank deposit 6,000 Income from associates and joint ventures 3,000 Motor vehicles at cost: Administrative 54,000 Distribution 92,000 Equipment at cost: Administrative 15,000 Distribution Royalties receivable Dividends paid 12,000 4,000 120,000