3. On 13 September 2020, inventory was counted and valued at cost of 780,000. However, included in this inventory is old stock costing 70,000 which could be sold at 60% of its cost.

4. The balance of prepayments at 1st Oct 2019 refers to insurance charges. Prepaid insurance included in general distribution costs at 30 Sept.. 2020 accounted for 14,000 eur. 5. The loan was issued in Oct. 2019. Interest is payable half-yearly on 1 April and 1 Oct. The interest due on April 2020 was paid on the date due. Accrued interest at Sept. 2020 has not yet been accounted for. 6. The balance of tax account is the result of an overprovision for the year ended Sept. 2019. The company's tax charge for the year to 30 Sept. 2020 has been estimated at 150,000 eur. 7. Depreciation is still to be calculated for the year on the following basis: Fixtures - 2% per annum straight line Manufacturing equipment - 10% per annum straight line Vehicles - 25% per annum using reducing balance method A full year of depreciation is calculated in the year an asset ie acquired, and none in the year in which it is disposed of. 8. During the year, the vehicle that was purchased in Aug. 2017 for 30,000 euro was sold for 10,000 eur. The NBV of the vehicle was 13,000. No entries have been made in the books for this disposal, apart from recording the disposal proceeds. 9. Auditors have audited the company and the total expense is estimated to be 80,000 eur. Required: Prepare the Incomes statement for AKA plc. For the year ended 30 Sept. 2020 Also, prepare the Balance Sheet for this date. Show your working clearly.

Goup B The Trading company AKA plc dealing with school supply The following information is extracted from the bookkeeping records at 30 September 2020 Trial Balance 30 September 2020 Euro 000 Euro 000 33 3500 1600 1200 200 120 78 20 7 660 12 8000 Bank/Cash Share Capital (1 eur par value per 1 share) Share premium Loan (10% repayable 2025) Revaluation reserve Vehicles cost Vehicles - Accumulated depreciation Provision for doubtful debts Tax Trade payables Prepayments at 1 Oct. 2019 Fixtures - cost Fixtures - Accumulated depreciation Disposal account Purchases Sales revenue Manufacturing equipment -cost Manufacturing equipment - Accum. depreciation Dividend paid Interest paid Inventory at 1st October 2019 Retained earnings Trade receivables Accrued expenses at 1 Oct. 2019 Distribution expense Other incomes Admin expenses 320 10 6800 12000 1800 540 200 60 610 974 1700 8 632 4 1154 You are also provided with the following information 1. The directors decided that a further 100,000 eur of TR should be written of and the provision for doubtful debts should be kept 3% of outstanding balance. 2. The balance of accrued expenses for 1 Oct. 2019 refers to accrued electricity expense. In the end of Sept. 2020 an electricity bill of 15,000 eur. The company classifies Heat and Light expenses under Admin Expenses. 3. On 13 September 2020, inventory was counted and valued at cost of 780,000. However, included in this inventory is old stock costing 70,000 which could be sold at