The following balances remained in the books of Polk Ltd on 31 March 2004, after the income statement had been drawn up. You are to draft the balance sheet as at 31 March 2004 in accordance with the relevant accounting standards.

1 Of the loan notes, £20,000 is repayable in five months’ time, while the other £30,000 is repayable in four years’ time.
2 Of the bills payable, £3,000 is in respect of a bill to be paid in eight months’ time and £1,000 for a bill payable in 14 months’ time.
3 The depreciation charged for the year was: Buildings £5,000, Plant and machinery £7,500.

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Dr Cr f Ordinary share capital: 1 shares Preference share capital: 50p shares Calls account (ordinary shares) Development costs Goodwill 250,000 100,000 1,000 32,000 104,000 Land and buildings - at cost 250,000 Plant and machinery - at cost 75,000 Provision for depreciation: Buildings 20,000 Provision for depreciation: Plant and machinery 30,000 Shares in undertakings in which the company has a participating interest 70,000 Inventory: Raw materials 6,000 Inventory: Finished goods 36,000 Accounts receivable: Trade 24,000 Amounts owed by associate entities 10,000 Prepayments 2,000 Loan notes (see Note 1) 50,000 Bank overdraft (repayable on demand) 16,000 Accounts payable: Trade (payable within one year) 17,000 Bills payable (see Note 2) 4,000 Share premium 50,000 Capital redemption reserve 10,000 General reserve Retained profits 20,000 43,000 610,000 610,000