The following details concern Nartje Ltd in relation to its financial year ended 31 May 2024:

Additional information:
(i) The company’s inventory was counted on 31 May 2024 and was valued at a cost of £17,300.
(ii) Depreciation is to be charged at the following annual rates:

(iii) The amount shown for business rates on the trial balance includes a payment of £8,100, which represents twelve months’ business rates to 31 January 2025.
(iv) The cost of electricity used for which no invoices have yet been received amounts to £6,512.
(v) Based on a careful analysis of the company’s experience with its credit customers, the allowance for doubtful debts is to be set at 4% of trade receivables.
(vi) The loan note interest is paid in two annual instalments and the second instalment needs to be provided for.
(vii) The corporation tax charge on the profit for the year is estimated to be £12,000.
Required:
In a form suitable for publication, prepare an income statement for Nartje Ltd for the year ended 31 May 2024 and a balance sheet as at that date.

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Trial balance as at 31 May 2024: Trade receivables Business rates Sales Carriage inwards Dividends paid Inventory as at 1 June 2023 Electricity General operating expenses Trade payables Equipment at cost Delivery vans at cost Equipment: accumulated depreciation at 1 June 2023 Delivery vans: accumulated depreciation at 1 June 2023 Purchases Cash at bank 6% loan notes 2028-2029 Loan note interest paid Bad debt expense Allowance for doubtful debts at 1 June 2023 Ordinary shares of 10p each Retained earnings at 1 June 2023 Dr 80,400 20,383 2,171 19,140 16,955 25,142 70,571 378,780 276,960 211,713 1,680 2,190 14,302 1,120,387 Cr 504,079 76,049 92,280 61,980 73,000 2,425 58,000 252,574 1,120,387