A The following information has been extracted from the books of Quire plc as at 30 Sep-

tember 2014.

£000 ..... $£ 000$

Bank overdraft ..... 2,400 Called-up share capital (ordinary shares of $£ 1$ each) ..... 4,000 Deferred taxation ..... 200 Delivery expenses ..... 2,800 Non-current assets: at cost ..... 3,500 accumulated depreciation (at 1 October 2013) 100 Loan notes held ..... 100 Loan-note interest (net) ..... 400 Interest payable 60 Interim dividend paid Office expenses ..... 3,000 Other creditors ..... 160 Other debtors ..... 180 820 Retained profits (at 1 October 2013) ..... 12,000 Purchases Revenue ..... 19,000 500 Inventory (at 1 October 2013)

Trade accounts payable ..... 100 5,320 Trade accounts receivable

$\underline{\underline{£ 27,840}}$

\section*{The following additional information is to be taken into account:}

1 Inventory at 30 September 2014 was valued at $£ 400,000$.

2 All items in the above trial balance are shown net of value added tax.

3 At 30 September 2014, $£ 130,000$ was outstanding for office expenses, and $£ 50,000$ had been paid in advance for delivery van licences.

4 Depreciation at a rate of $50 \%$ is to be charged on the historic cost of the tangible non-current assets using the reducing balance method: it is to be apportioned as follows:

\begin{tabular}{lc}

& $\%$ \\

Cost of sales & 60 \\

Distribution & 30 \\

Administration & $\underline{10}$ \\

& $\underline{100}$

\end{tabular}

There were no purchases or sales of non-current assets during the year to 30 September 2014.

5 The following rates of taxation are to be assumed:

\begin{tabular}{ll}

& $\%$ \\

Corporation tax & 35 \\

Income tax & 25 \\

Value added tax & 17.5

\end{tabular}

The corporation tax payable based on the profits for the year to 30 September 2014 has been estimated at $£ 80,000$.

6 A transfer of $£ 60,000$ is to be made from the deferred taxation account.

7 The directors propose to pay a final ordinary dividend of 3 p per share.

\section*{Required: $\square$}

In so far as the information permits, prepare Quire plc's income statement for the year ending 30 September 2014, and a statement of financial position as at that date in accordance with the requirements of the relevant accounting standards.

Note: Formal notes to the accounts are NOT required, but detailed workings should be submitted with your answer.