The following balances have been extracted from the books of Volumes Limited, a book binder, at 30 September 2016:

Additional information 

• Inventory at 30 September 2016 was valued at a cost of £150,000.
• Taxation on the profit for the year has been estimated to be £250,000.
• All depreciation charges for the year to 30 September 2016 have been calculated in the balances above.

Required 

Using the list of balances and the additional information prepare the income statement and statement of financial position for Volumes Limited in a form suitable for publication.
You will need to produce a working to calculate cost of sales.

Transcribed Image Text:

Plant and machinery: cost Plant and machinery: accumulated depreciation at 30 September 2016 Assets and expenses Income and liabilities 000 2,000 000 800 Sales 4,750 Trade receivables 430 Administration expenses 300 Selling and distribution costs 200 Production costs 2,600 Finance expense 100 Cash at bank 175 Loan (due 30 September 2025) 500 Trade payables 300 Finance income 25 Called up share capital 250 Share premium 125 Retained earnings at 30 September 2015 Inventory at 1 October 2015 155 100 Production wages 1,000 6,905 6,905