(a)[9]
Draw up the income statement for the year ended 28 February 2022. Use the space on the following page for your workings.
(b)[4]
Draw up Lee’s current account for the year ended 28 February 2022.
(c)[6]
Calculate the increase or decrease in Lee’s current account balance at 28 February 2022 if the new agreement had applied from 1 March 2021.
(d)[2]
Explain one benefit of being run as a partnership instead of a limited company.
(e)[4]
Explain two advantages of being a limited company instead of a partnership.
(f)[5]
Advise Lee on whether he should accept Karen’s suggestion, and justify your advice.