The following trial balance has been extracted from the books of Arran plc as at 31 March 2007:

Additional information:

1. Stocks at 31 March 2007 were valued at 150,000.

2. Depreciation for the year to 31 March 2007 is to be charged against administrative expenses as follows:

3. Assume that the basic rate of income tax is 30 per cent.
4. Corporation tax of £180,000 is to be charged against profits on ordinary activities for the year to 31 March 2007.
5. £4,000 is to be transferred to the deferred taxation account.
6. The company proposes to pay a final ordinary dividend of 30p per share.

Required:

In so far as the information permits, prepare the company’s profit and loss account for the year ending 31 March 2007 and a balance sheet as at that date in accordance with the Companies Acts and related accounting standards. (Note: Profit and loss account and balance sheet notes are not required, but you should show the basis and computation of earnings per share at the foot of the profit and loss account, and your workings should be submitted.)

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000 000 Administrative expenses 95 Called-up share capital (all ordinary shares of 1 each) Cash at bank and in hand 200 25 Debtors 230 Deferred taxation (at 1 April 2006) 60 Distribution costs 500 Fixed asset investments 280 Income from fixed asset investments 12 Interim dividend paid 21 Overprovision of last year's corporation tax 5 Land and buildings at cost 200 Land and buildings: accumulated depreciation at 1 April 2006 Plant and machinery at cost 30 400 Plant and machinery: accumulated depreciation at 1 April 2006 Profit and loss account (at 1 April 2006) 170 229 Profit on exceptional item 50 Purchases 1,210 Sales 2,215 Stocks at 1 April 2006 140 Trade creditors 130 3,101 3,101