Omicron Plc
 Date: 30 June 2024

Trial Balance:

Description	Dr (£000)	Cr (£000)
Bank overdraft		220
Called-up share capital (ordinary shares of £1 each)		5,300
Accounts payable		250
Accounts receivable	230
Non-current assets: at cost	700
Accumulated depreciation (at 1 July 2023)		520
Marketing expenses	500
Office expenses	530
Retained profits (at 1 July 2023)		600
Production expenses	6,200
Purchases (net of VAT)	7,600
Sales (amounts invoiced, net of VAT)		15,200
Inventory (at 1 July 2023)	520
Trade accounts payable		550
Trade accounts receivable	6,300
Total	14,280	14,280

Additional Information:

1. Inventory at 30 June 2024 was valued at £590,000.
2. At 30 June 2024, £215,000 was owing for office expenses, and £205,000 had been paid in advance for marketing expenses.
3. A customer had gone into liquidation owing the company £690,000; 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: 25%
   • Office: 25%
   • Production: 50%

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

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