Profit and loss account for the year ended 31 December 2020 NS Sales (all credit sales) 2,217,000 Less: cost of sales (1,201,000) Gross profit 1,016,000 Less: expenses - Administration 611,500 - Depreciation 100,000 Profit before interest & tax Loan interest Profit before tax (711,500) 304,500 (83,300) 221,200 Less: Corporation tax (124,240) Profit after tax 96,960 Retained profit brought forward 551,090 648,050 Less: dividends (30,000) Retained profit carried down 618.050 NS