The trial balance for Rambaldi Ltd at 31 December 2024 is as follows:

The figures in the above trial balance include all transactions processed to date. The following issues also need to be considered before preparing the financial statements:
(i) Inventory at 31 December 2024 was counted and valued at a cost of £466,000.
(ii) Depreciation is to be charged as follows:
• Buildings - 5% straight line • Plant & equipment - 25% reducing balance

(iii) Insurance includes an annual premium of £57,000 paid that covers the twelve months to 30 April 2025.
(iv) Gas, electricity and water charges for December 2024, for which no bills have yet been received, are estimated to total £62,000.
(v) Based on a meticulous analysis of the company’s experience with debt collection, the allowance for doubtful debts is to be set to 5% of trade receivables.
(vi) On 28 December 2024, a supplier paid the £11,000 it owed for goods returned by Rambaldi Ltd in November. The supplier paid this £11,000 directly into Rambaldi Ltd’s bank account. The bank reconciliation at 31 December 2024 revealed that this receipt has yet to be entered in Rambaldi Ltd’s accounting records, although the original return was correctly recorded.
(vii) The bank loan was received on 1 October 2024 and is repayable in full on 1 September 2029.
Interest is charged at a fixed rate of 6% per year and is payable in two annual instalments, the first of which will be paid on 31 March 2025.
(viii) During December 2024, the land was valued at £1.5m by a professional firm of valuers. The directors of Rambaldi Ltd wish to incorporate this valuation in the year-end financial statements.
(ix) Corporation tax due on the profit for the year is estimated to be £248,000 (this estimate is unaffected by the eight matters above).
Required:
Prepare, in a format appropriate for external use, the income statement for the year ended 31 December 2024 for Rambaldi Ltd followed by its balance sheet as at that date.

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Allowance for doubtful debts at 1 January 2024 Bad debt expense Bank Bank loan Buildings at cost Buildings: accumulated depreciation at 1 January 2024 Cash in hand Dividends paid Gas, electricity and water Insurance Inventory at 1 January 2024 Land at cost Ordinary shares of 50p each Other operating expenses Overdraft interest paid Plant & equipment at cost Plant & equipment: accumulated depreciation at 1 January 2024 Purchases Retained earnings at 1 January 2024 Returns inwards Returns outwards Rent received Sales Share premium account Trade payables Trade receivables Dr '000 211 2,640 6 194 418 107 519 800 909 14 1,774 6,190 172 1,080 15,034 Cr '000 82 137 600 506 1,200 794 963 69 131 9,078 955 519 15,034