Alpha Bakery Limited produces accounts to $31$ December each year. You work for the financial controller who is currently preparing the accounts for the period to $31$ December $2023$ and has asked for your assistance. The following trial balance has been extracted from the general ledger.

Account

$000000$

Dr Cr

Land and buildings at cost $525$ Plant and machinery at cost $100$ Buildings accumulated depreciation as at $1$ January $2023$

Plant & Machinery accumulated depreciation as at $1$

January $2023$

Bank balance $12$ Cash in hand $2$ Revenue

Net purchases $1,040$ Inventory as at $31$ December $202340$ Trade receivables $85$ Trade payables

Administrative expenses $560$ Allowance for receivables $1$ January $2023$

Retained earnings at $1$ January $2023$

Equity shares $(0\mathrm{.}50$ per share$)$

Suspense Account $48$

$3260$

$1,795$

$115$

$5105300$

$2,4122,412$

You have been provided with the following additional information:

$$ Depreciation is charged on buildings on a straight$-$line basis over $25$ years.

$$ The value of the land at cost is $325,000.$

$$ Plant and machinery is depreciated at $25\%$ on a reducing balance basis.

$$ Included in the inventory valuation is $7,000$ relating to goods which will have to be sold off at a discount. It is believed the maximum amount that could be generated from the sale of this inventory is $5,500.$

$$ The general provision for doubtful receivables is to be maintained at $5\%$ of the receivables balance. The allowance for receivables is treated as an administrative expense.

$$ Administrative expense includes a payment of $4,320$ for business rates for the $12$ months to $31$ March $2024$

$$ All depreciation is to be charged to cost of sales.

$$ The suspense account balance is thought to have been created as a result of one of the

following errors:

$$ A sales invoice was incorrectly recorded as $100,000$ rather than $148,000.$

$$ A $48,000$ contra was correctly applied to the receivables control account but the corresponding entry was not made to the payables control account.

Prepare the statement of profit or loss and the statement of financial position for Alpha Bakery Ltd as at $31$ December $2023.$