The income statement or Tosuso shows a profit of £10,870 for the period ended 31 December 200X. However this income statement has been drawn up before adjustments have been made for the following:

• Non-current assets of £54,000 are to be depreciated on a straight line basis over 10 years. Residual value is assumed to be £5,400.

• Bad debts of £6,700 have been identified for the period.

• The provision for bad debts, which is set at 5% of debtors balance, is shown in the balance sheet as £3,000. Debtors at the year end amount to £63,000 before the bad debt of £6,700 is written off.

• Accruals of £1,500 for electricity and prepayments of £4,500 for rent of office space.

Required Show the adjustments to be made to the income statement to account for the above and recalculate the profit for the period.