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

The following additional information is available:
(i) Purchase invoices for goods received on 29 June 2005 amounting to £23,000 have not been included. This means that the cost of sales figure in the profit and loss account has been understated.
(ii) A motor vehicle costing £8,000 with depreciation amounting to £5,000 was sold on 30 June 2005 for £2,100, paid by cheque. This transaction has not been included in the company’s records.

(iii) No depreciation on motor vehicles has been charged. The annual rate is 20% of cost at the year end.
(iv) A sale on credit for £16,000 made on 1 July 2005 has been included in the financial statements in error. The cost of sales figure is correct in respect of this item.
(v) A half-yearly payment of interest on the secured loan due on 30 June 2005 has not been paid.
(vi) The tax charge should be 30% 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 (i)-(vi)
above. Note: Work to the nearest £1,000.

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Chips Limited Profit and loss account for the year ended 30 June 2005 000 000 Revenue 1,850 Cost of sales (1,040) Gross profit 810 Less Depreciation (220) Other operating costs (375) (595) Operating profit 215 Interest payable (35) Profit before taxation Taxation Profit after taxation 180 (60) 120 Balance sheet as at 30 June 2005 Cost Depreciation 000 000 000 Non-current assets Property, plant and equipment Buildings 800 (112) 688 Plant and equipment 650 (367) 283 Motor vehicles 102 (53) 49 1,552 (532) 1,020 Current assets Stock (inventories) 950 Trade debtors (receivables) 420 Cash at bank 16 1,386 Less Current liabilities. Trade creditors (payables) (361) Other creditors (payables) (117) Taxation (60) (538)