CLIFTON PHARMA LIMITED The following trial balance relates to Clifton Pharma Limited for the financial year ended 30 September 2018, assume you are working as an Accounts Executive in this Company 134,000 35,000 1.500 7,000 338,300 250,000 197,000 Cost of sales Operating Expenses Loan interest paid (see note 1) Rental of vehicles (see note 2) Revenue Investment income Leasehold property at cost (see note 4) Plant and machinery at cost Accumulated depreciation at 1 October 2017: Leashold property Plant and equipment Investments Share capital Share premium Retained earnings at October 2017 Loan notes (see note 1) Deferred tax balance at 1 October 2017 (see note 5) Inventory at 30 September 2018 Trade receivables Trade payables Bank 40,000 47.000 94,000 280,000 20.000 19,300 50,000 20,000 23.700 76,400 14.100 12.100 830,700 830,700 The following information is relevant for the preparation of financial statements for the year ended 30 September 2018: 1) 2) The effective interest rate on the loan notes is 6% per year. A recent review by the finance department of lease contract has reached the conclusion that 7,000 was paid the lease agreement is for a four-year period in total, and there will be three more annual payments in advance of 7,000, payable on October in each year. The vehicles in the lease agreement had a fair value of 24,000 at 1 October 2017 and they should be depreciated using the straight line method to a nil residual value. The interest rate implicit in the lease is 10% per year. Other plant and equipment is depreciated at 20% per year by the reducing balance method. All depreciation of property, plant and equipment should be charged to cost of sales. 3) 4) The leashold property has a 25-year life and is amortised at a straight-line rate. On 30 September 2018 the icaschold property was reviawed to 220.000 and the directors wish to incorporate this revaluation in the financial statements. 5) The provision for income tax for the year ended 30 September 2018 has been estimated at [ 18,000. At 30 September 2013 there are taxable temporary differences of 92,000. The rate of income tax on profits is 25% Required: a) b) Prepare Adjustment Journals for the period ended 30 Septemebr 2018 Prepare Adjusted Trial Balance as on 30 September 2018 Prepare a statement of Profit or Loss for the year ended 30 September 2018, Balance Sheet as at 30 September 2018 d)