Bullsover plc's trial balance as at 31 October 2017.

(dr) (cr)

Share capital 9,000

Trade and other payables 1,347

Property, plant and equipment - cost 39,880

Property, plant and equipment - accumulated depreciation 21,780

Trade and other receivables 2,234

Accruals 146

8% bank loan 2022 14,000

Cash at bank 9,654

Retained earnings 3,465

Interest 560

Sales 46,433

Purchases 32,553

Distribution costs 2,450

Administrative expenses 3,444

Inventories as at 1 November 2016 4,466

Dividends paid 930

Total 96,171 96,171

Additional Information:

The inventories at the close of business on 31 October 2017 were valued at 4,987,000.

Land, which is non-depreciable, is included in the trial balance at a value of 8,000,000. It is to be revalued at 12,000,000 and this revaluation is to be included in the financial statements for the year ended 31 October 2017. The rest of the assets are to be depreciated at 10% and the depreciation charge is to be apportioned as follows:

• Cost of sales 60%
• Distribution costs 20%
• Administrative expenses 20%

The company paid 512,000 for one year's insurance on 1 February 2017; this is due to expire on 31 January 2018.

Distribution costs of 66,000 owing at 31 October 2017 are to be accrued.

Interest on the bank loan for the last six months of the year has not been included in the accounts in the trial balance.

The corporation tax charge for the year has been calculated as 980,000.

All the operations are continuing operations.

You are required to draft:

a) The income statement for Bullsover plc for the year ended 31 October 2017 [20 marks]

b) The statement of financial position for Bullsover plc as at the year ended 31

October 2017 [20 marks]