Falmouth plc has an authorised share capital of £2,000,000 divided into 3,000,000 equity shares of 50p and 500,000 12% redeemable preference shares of £1.

The following trial balance has been extracted from the accounting records at 30 June 20X1: LO9 Debit Credit

£000 £000 50p equity shares (fully paid) 500 12% £1 preference shares (fully paid) 200 8% debentures 400 Retained earnings 1 July 20X0 368 Freehold land and buildings (cost) 860 Debit Credit £000 £000 Plant and machinery (cost) 1,460 Motor vehicles (cost) 440 Accumulated depreciation at 1July 20X0:
Freehold buildings 40 Plant and machinery 444 Motor vehicles 230 Inventory at 1 July 20X0 380 Sales 6,590 Purchases 4,304 Final dividends for year end 30 June 20X0:
Equity 40 Interim dividends for year end 30 June 20X1:
Preference 12 Equity 16 Debenture interest 16 Wages and salaries 508 Light and heat 62 Irrecoverable debts expense 30 Other administration expenses 196 Receivables 578 Payables 390 Allowance for receivables 20 Corporation tax paid 112 Bank 168 ______ £9,182 £9,182 The following information needs to be dealt with before the financial statements can be completed:
Inventories at 30 June 20X1 were valued at £440,000 (cost)
Other administration expenses include £18,000 paid in respect of a machinery maintenance contract for the 12 months ending 30 November 20X1. Light and heat does not include an invoice of £12,000 for electricity for the quarter ending 3 July 20X1, which was paid in August 20X1 The directors wish to provide for:

(i)
(ii)
(iii)
(d)
(e)
(f)
(g)
(h)
(i)
any debenture interest due directors’ bonuses of £24,000 the year’s depreciation The allowance for receivables required at 30 June 20X1 is £24,000 During the year ended 30 June 20X1, a customer whose receivables balance of £8,000 had been written off in previous years as irrecoverable paid the full amount owing. The company credited this amount to receivables The debentures have been in issue for some years Corporation tax of £256,000 is to be charged on the profits During the year a piece of machinery, which had originally cost £320,000 and had been owned by the company for 6 years, was scrapped. Proceeds received were £40,000.
These have been incorrectly credited to the plant and machinery cost account The buildings element of the freehold land and buildings cost is £400,000.
Depreciation methods and rates are as follows:
Buildings Straight-line over 50 years Plant and machinery 10% straight-line Motor vehicles 33% reducing balance Required:
Prepare the statement of profit or loss and statement of changes in equity of Falmouth plc for the year ended 30 June 20X1 and a statement of financial position at that date