You are to draw up a statement of profit or loss for the year ending 31 December 2015, and a statement of financial position as at that date from the following trial balance and details of Partido Ltd:

(1) Inventory £317,426.
(2) Business rates owing £1,700; Office expenses owing £245.
(3) Dividend of 15 per cent proposed.
(4) Transfers to reserves: General £70,000; Foreign exchange £30,000.
(5) Depreciation on cost: Buildings 5 per cent; Equipment 15 per cent.

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Dr Cr Bank 8,100 Accounts receivable 321,219 Accounts payable 237,516 Inventory at 31 December 2014 290,114 Buildings at cost 800,000 Equipment at cost 320,000 Retained profits as at 31 December 2014 136,204 General reserve 120,000 Foreign exchange reserve 20,000 Authorised and issued share capital 800,000 Purchases 810,613 Sales 1,606,086 Carriage inwards 2,390 Carriage outwards Salaries 13,410 384,500 Business rates 14,800 Office expenses 9,100 Sundry expenses 2,360 Provisions for depreciation at 31 December 2014: Buildings 80,000 Equipment 96,000 Directors' remuneration 119,200 3,095,806 3,095,806