Gamma Plc
 Date: 30 June 2023

Trial Balance:

Description	Dr (£000)	Cr (£000)
Bank overdraft		40
Called-up share capital (ordinary shares of £1 each)		1,700
Accounts payable		70
Accounts receivable	50
Non-current assets: at cost	340
Accumulated depreciation (at 1 July 2022)		160
Marketing expenses	140
Office expenses	170
Retained profits (at 1 July 2022)		240
Production expenses	2,600
Purchases (net of VAT)	4,000
Sales (amounts invoiced, net of VAT)		8,000
Inventory (at 1 July 2022)	160
Trade accounts payable		190
Trade accounts receivable	2,700
Total	9,180	9,180

Additional Information:

1. Inventory at 30 June 2023 was valued at £200,000.
2. At 30 June 2023, £35,000 was owing for office expenses, and £25,000 had been paid in advance for marketing expenses.
3. A customer had gone into liquidation owing the company £330,000; 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: 15%
   • Office: 25%
   • Production: 60%

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

Required:
 Prepare Gamma Plc’s income statement for the year ending 30 June 2023, and a balance sheet as at that date.