Rose Limited operates a small chain of retail shops which sell high quality teas and coffees. Approximately half of sales are on credit. Abbreviated and unaudited accounts are given below:

Since the unaudited accounts for Rose Limited were prepared, the following information has become available.
1 An additional £74,000 of depreciation should have been charged on fixtures and fittings.
2 Invoices for credit sales on 31 March 19X0 amounting to £34,000 have not been included; cost of sales is not affected.
3 Bad debts should be provided at a level of 2 per cent of debtors at the year end.
4 Stocks, which had been purchased for £2,000, have been damaged and are unsaleable.
5 Fixtures and fittings to the value of £16,000 have been delivered just before 31 March 19X0, but these assets were not included in the accounts and the purchase invoice had not been processed.

6 Wages for Saturday only staff, amounting to £1,000 have not been paid for the final Saturday of the year.
7 Tax is payable at 35 per cent of net profit after tax.
Prepare a balance sheet and profit and loss account for Rose Limited for the year ended 31 March 19X0, incorporating the information in points 1—7 above.

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Rose Limited Profit and Loss Account for the year ended 31 March 19X0 Sales Cost of sales Gross profit Labour costs Depreciation Other operating costs Net profit before interest Interest payable Net profit before tax Tax payable Net profit after tax 000 000 12,080 6,282 5,798 2,658 625 1,003 4,286 1,512 66 1,446 506 940