Alan, Bertie and Charlie trade in partnership sharing profits and losses equally. The following trial balance has been prepared as at 31 December 2020: f. 60000 16000 30000 7920 3100 12610 410001 18000 31000 423220 Capital accounts: Alan Bertie Charlie Current accounts: Alan Bertie Charlie Drawings: Alan Bertie Charlie Sales Returns inwards Purchases Carriage inwards Inventory (1 January 2020) Salaries Bad debts Discounts allowed Allowance for doubtful debts - 1 January 2020 Light and heat Insurance Office expenses Repairs and renewals Freehold buildings at cost Machinery at cost Office equipment at cost Accumulated depreciation at 1 January 2020: Machinery Office equipment Accounts payable Accounts receivables Bank 18000 224800 4200 82000 60000 2100 600 1150 14001 3000 2004 800 30000 12250 10000 6250 6000 40300 56000 5000 603 450 603 450 L You have been provided with the following information: 1. Inventory at 31 December 2020 has been valued at 90,000. However, 5% of this inventory is deemed to have a net realisable value of only 3,000. 2. 600 is due in respect of accountancy fees at 31 December 2020. 3. A bad debt of 5,000 is to be written off. The partners have decided to make an allowance for doubtful debts amounting to 4% of receivables at the 31 December 2020. 4 An insurance bill for 200 was paid on 1 November 2020 for the period to 31 March 2021. 5. Depreciation on non-current assets is to be charged as follows: Machinery - 5% per annum on cost. Office equipment - 20% per annum on reducing balance. 6. The partnership agreement covers the following appropriations: As from 1 September 2020, Bertie is to be allowed a salary of 6,000 per annum; Interest of 5% is allowed on partners' opening capital account balances; Interest is to be charged on partners' drawings as follows: Alan 900; Bertie 360;- Charlie 300. Requirement Prepare the income statement and the partners' appropriation account for the year ended 31 December 2020. What figure should appear in the statement of profit and loss in relation to insurance, for the year ended 31 December 2020? 3000 2880 120 3120