The following trial balance has been extracted from the books of Baganza plc as at 30 September 19X7:

Required:
Insofar as the information permits, prepare Baganza plc’s profit and loss account for the year to 30 September 19X7, and a balance sheet as at that date in accordance with the Companies Act 1985 and appropriate accounting standards.
However, formal notes to the accounts are not required, although detailed workings should be submitted with your answer, which should include your calculation of earnings per share.

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000 000 Advance corporation tax (paid on interim dividend) 87 Administrative expenses 400 Called up share capital (1,200,000 ordinary shares of 1 each) 1,200 Cash at bank and in hand 60 60 Corporation tax (overpayment for the year to 30 September 19X6) 20 Deferred taxation (at 1 October 19X6) 460 Distribution costs 600 Dividends received (on 31 March 19X7) 249 Extraordinary item (net of tax) 1,500 Freehold property: at cost 2,700 accumulated depreciation (at 1 October 19X6) 260 Interim dividend (paid on June 19X7) 36 Investments in United Kingdom companies 2,000 Plant and machinery: at cost 5,200 accumulated depreciation (at 1 October 19X6) 3,600 Profit and loss account (at 1 October 19X6) 2,109 Purchases Research expenditure Stock (at 1 October 19X6) Tax on extraordinary item Trade creditors Trade debtors Turnover 16,000 75 2,300 360 2,900 2,700 19,500 32,158 32,158