Delta Ltd
 Date: 30 September 2023

Trial Balance:

Description	Dr (£000)	Cr (£000)
Bank overdraft		45
Called-up share capital (ordinary shares of £1 each)		1,800
Accounts payable		75
Accounts receivable	55
Non-current assets: at cost	350
Accumulated depreciation (at 1 October 2022)		170
Marketing expenses	150
Office expenses	180
Retained profits (at 1 October 2022)		250
Production expenses	2,700
Purchases (net of VAT)	4,100
Sales (amounts invoiced, net of VAT)		8,200
Inventory (at 1 October 2022)	170
Trade accounts payable		200
Trade accounts receivable	2,800
Total	9,270	9,270

Additional Information:

1. Inventory at 30 September 2023 was valued at £210,000.
2. At 30 September 2023, £40,000 was owing for office expenses, and £30,000 had been paid in advance for marketing expenses.
3. A customer had gone into liquidation owing the company £340,000; 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: 10%
   • Office: 30%
   • Production: 60%

Note:
 There were no acquisitions or disposals of non-current assets during the year to 30 September 2023.

Required:
 Prepare Delta Ltd’s income statement for the year ending 30 September 2023, and a balance sheet as at that date.