1 The Harding Law Partnership （HLP) provides legal services to commercial clients in the c

1 The Harding Law Partnership (HLP) provides legal services to commercial clients in the country of Strifeland. The

partnership commenced trading on 1 June 2001. Each of the advisors employed by HLP is a specialist in the

provision of legal services in respect of ONLY one of the following categories of work:

Property;

Commercial; or

Litigation.

Appendices 1.1 and 1.2 below show statistics (both budget and actual) for the twelve month period ended 31 May

2007 for HLP and also for a competitor, Merlin Advisory Services (MAS).

Additional information relating to HLP for the year ended 31 May 2007 is as follows:

(1) Fees charged per consultation (including subcontracted consultations)

Required:

(a) Using the information contained in Appendix 1.1, prepare budgeted and actual profit and loss statements for

HLP and also a profit and loss statement on an actual basis for MAS for the year ended 31 May 2007.

(14 marks)