Reference no: EM132765461

The following information was taken from the ledger of Ambleside Ltd, as at 30 June 2020 - the end of his accounting year.

Revenue = £804,000

Purchases = £355,000

Inventory as at 1 July 2019 = £70,000

Discount allowed = £9,000

Depreciation expenses = £7,800

Wages and salaries = £45,000

Bad debt = £1,700

Loan interest = £5,200

Marketing expenses = £8,800

Administrative expenses = £20,000

The following additional information as 30 June 2020 is available:

1. Inventory at the end of the financial year has been valued at £39,000.

2. Marketing expenses need to be accrued by £1,600.

3. Administrative expenses are prepaid by £600.

4. Tax rate 20%

Required

Problem 1: Prepare the statement of profit and loss for the year ended 30 June 2020 for Ambleside Ltd.