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: LO4 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 Debit Credit £000 £000 Freehold land and buildings (cost) 860 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 debt expense 30 Other administration expenses 196 Receivables 578 Payables 390 Allowance for doubtful debts 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)
(j)
9 any debenture interest due directors’ bonuses of £24,000 the year’s depreciation.
The allowance for doubtful debts 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 paid the full amount owing. The company credited this 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 six years, was scrapped. Proceeds received were £40,000.
These have been credited incorrectly 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 At 30 June 20X1 the freehold land and buildings are revalued at £1,200,000, and this revaluation is to be incorporated into the financial statements.
Required:
Prepare the statements of comprehensive income and changes in equity of Falmouth plc for the year ended 30 June 20X1, and a statement of financial position at that date in accordance with IAS 1 Presentation of Financial Statements. Expenses are to be analysed by function.