Assume that you are working as an Accounts Officer for 1 year and now at the end of financial year 2018. The Management of Alpine Limited want to asses their financial perfornance during the year ended June 30, 2018 and have asked you to prepare Profit & Loss and the Balance Sheet for the year then ended You cme across the following information after the examination of the following records: Trial Balance As at 30 June 2018 GBP 1 GBP 737,000 75.000 301.000 1 240,000 20,000 51.000 200.000 280.000 Sales Stock 1 July 2017 Purchases Manufacturing expenses Selling and marketing expenses Administrative expenses Factory building - cost at 1 July 2017 Machines - cost at 1 July 2017 Factory building - accumulated depreciation at 1 July 2017 Machines - accumulated depreciation at 1 July 2017 Advance income tax Debtors Cash and bank Creditors Share Capital Retained earnings 1 July 2017 50.000 87.000 4,000 51.000 63,000 300,000 90,000 1,347,000 1.347,000 Depreciation on factory building and machines are provided on reducing balance method @10% and 15% per annum respe 60% depreciation on factory building and 100% depreciation on machines are charged to cost of sales. The balance depreciation is charged to administrative expenses. On 31 May 2018, a fully depreciated machine was sold for 3,000. The sale proceeds were recceived on 5 July 2018 No entries have been made in respect of these transactions. Debtors include an amount 28,000 owed by a customer who exp[erienced cash flow problems prior to the year-end The company has agreed to accept 18,000 in full and final settlement of the debt. Four other debtors aggregating 5,000 are required to be written off. Income tax liabiltiy for the year ended 30 June 2018 is estimated ar 25,000 On 20 June 2018 an advance of 12,000 was received under a contract for supply of goods in August 2018. The advance was credited to sales. Closing stock at 30 June 2018 amounted to 114,000 It included stock costing 20,000 whereas the related invoice was booked on July 4, 2018. In June 2018, a competitor developed a new product wich has affected the Company's ability to sell one of its products at its normal price of 160 per unit. It is estimated that to sell the product, the company needs to offer a discount of 25%. 150 units of that product were in hand as on 30 June 2018 at a cost of 120 per unit. Its selling costs are estimated at 20 per units