Alpha Plc
 Date: 31 March 2024

Trial Balance:

Description	Dr (£000)	Cr (£000)
Bank overdraft		30
Called-up share capital (ordinary shares of £1 each)		1,500
Accounts payable		60
Accounts receivable	60
Non-current assets: at cost	320
Accumulated depreciation (at 1 April 2023)		140
Marketing expenses	120
Office expenses	150
Retained profits (at 1 April 2023)		220
Production expenses	2,400
Purchases (net of VAT)	3,800
Sales (amounts invoiced, net of VAT)		7,500
Inventory (at 1 April 2023)	140
Trade accounts payable		170
Trade accounts receivable	2,500
Total	9,090	9,090

Additional Information:

1. Inventory at 31 March 2024 was valued at £180,000.
2. At 31 March 2024, £25,000 was owing for office expenses, and £18,000 had been paid in advance for marketing expenses.
3. A customer had gone into liquidation owing the company £310,000; the company does not expect to recover any of this debt.
4. The company decides to set up an allowance for doubtful debts amounting to 5% of the outstanding trade accounts receivable as at the end of each financial year.
5. Depreciation is to be charged on the non-current assets at a rate of 20% on cost; it is to be apportioned as follows:
   • Marketing: 25%
   • Office: 15%
   • Production: 60%

Note:
 There were no acquisitions or disposals of non-current assets during the year to 31 March 2024.

Required:
 Prepare Alpha Plc’s income statement for the year ending 31 March 2024, and a balance sheet as at that date.