Gamma Plc
 Date: 30 June 2024

Trial Balance:

Description	Dr (£000)	Cr (£000)
Bank overdraft		160
Called-up share capital (ordinary shares of £1 each)		4,100
Accounts payable		190
Accounts receivable	170
Non-current assets: at cost	580
Accumulated depreciation (at 1 July 2023)		400
Marketing expenses	380
Office expenses	410
Retained profits (at 1 July 2023)		480
Production expenses	5,000
Purchases (net of VAT)	6,400
Sales (amounts invoiced, net of VAT)		12,800
Inventory (at 1 July 2023)	400
Trade accounts payable		430
Trade accounts receivable	5,100
Total	12,000	12,000

Additional Information:

1. Inventory at 30 June 2024 was valued at £470,000.
2. At 30 June 2024, £155,000 was owing for office expenses, and £145,000 had been paid in advance for marketing expenses.
3. A customer had gone into liquidation owing the company £570,000; 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: 35%
   • Production: 50%

Note:
 There were no acquisitions or disposals of non-current assets during the year to 30 June 2024.

Required:
 Prepare Gamma Plc’s income statement for the year ending 30 June 2024, and a balance sheet as at that date.