*8.8 Imran owns a business which operates from rented premises. He has a 10-year lease on the premises and paid a premium of £7,000 in order to obtain the lease. His profit and loss account (or income statement) for the year ended 31 December 2009 is as follows:

£ £

Gross profit for the year 52,618 Add: Interest receivable 212 Surplus on sale of office equipment 300 512

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53,130 Less: Wages (see Note 1) 19,280 Rent, rates and insurance (see Note 2) 6,915 Electricity 4,328 Telephone (see Note 3) 1,650 Repairs (see Note 4) 2,286 Printing and advertising 1,250 Motor expenses (see Note 5) 5,712 Legal and professional expenses (see Note 6) 3,000 Sundry expenses (see Note 7) 4,777 Bad and doubtful debts (see Note 8) 860 Bank charges and interest 2,765 Lease premium amortisation 700 Depreciation 8,749 62,272

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Net loss for the year (9,142)

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