The following are the draft summarised statements of profit or loss and other comprehensive income of ‘Top Limited for the year ended 31 May 2018:

During the audit of the financial statements for the year ended 31 May 2018, it was discovered that advertising expenditure was omitted from financial statements as follows:

The correction of these errors is not included in the above draft statements of profit or loss and other comprehensive income. The company’s profits are taxable at 40%.
Requirement Redraft the statement of profit or loss and other comprehensive income of Top Limited for the year ended 31 May 2018.

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2018 2017 Profit before tax 820,000 640,000 Income tax expenses (328,000) (256,000) Profit after tax 492,000 384,000 Retained earnings brought forward 1,174,000 890,000 Retained earnings carried forward 1,666,000 1,274,000