Clare Analetto, an antique dealer, has the following trial balance as at 31 December 2012.

You also have the following notes to the accounts.

1. Closing inventory of antiques is £7,000.

2. Depreciation for the year is to be charged at 2% on premises, 10% on machinery, 15% on office equipment, and 25% on the motor car.

Required:

Prepare C. Analetto’s income statement for the year ended 31 December 2012 and the statement of financial position as at 31 December 2012.

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Debit Credit Revenue 100,000 Sales returns 5,000 Purchases 70,000 Purchases returns 6,000 Opening inventory of antiques 9,000 Trade receivables 16,800 Business rates 800 Trade payables 14,000 Cash at bank 17,100 Long-term loan 12,000 Bank interest receivable 850 Rent 2,050. Electricity 1,950