4.7 Presented below is a draft set of financial statements for Chips Limited.

The following additional information is available:
1 Purchase invoices for goods received on 29 June 2016 amounting to £23,000 have not been included. This means that the cost of sales figure in the income statement has been understated.
2 A motor vehicle costing £8,000 with depreciation amounting to £5,000 was sold on 30 June 2016 for £2,000, paid by cheque. This transaction has not been included in the company’s records.
3 No depreciation on motor vehicles has been charged. The annual rate is 20 per cent of cost at the year end.
4 A sale on credit for £16,000 made on 1 July 2016 has been included in the financial statements in error. The cost of sales figure is not affected.
5 A half-yearly payment of interest on the secured loan due on 30 June 2016 has not been paid.
6 The tax charge should be 30 per cent of the reported profit before taxation. Assume that it is payable, in full, shortly after the year end.
Required:
Prepare a revised set of financial statements incorporating the additional information in 1 to 6 above. (Work to the nearest £1,000.)

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Income statement for the year ended 30 June 2016 Revenue Cost of sales Gross profit Depreciation Other operating costs Operating profit Interest payable Profit before taxation Taxation Profit for the year 000 1,850 (1,040) 810 Statement of financial position as at 30 June 2016 Cost 000 (220) (375) 215 (35) 180 (60) 120 Depreciation 000 000 ASSETS Non-current assets Property, plant and equipment Buildings 800 (112) Plant and equipment 650 (367) Motor vehicles 102 (53) 1,552 (532) Current assets Inventories Trade receivables Cash at bank Total assets EQUITY AND LIABILITIES Equity Ordinary shares of 1, fully paid Reserves at beginning of the year 800 248 Profit for the year 120 1,168 Non-current liabilities Borrowings (secured 10% loan notes) 700 Current liabilities Trade payables Other payables Taxation 361 117 60 538