Pi Ltd
 Date: 30 June 2023

Trial Balance:

Description	Dr (£000)	Cr (£000)
Bank overdraft		105
Called-up share capital (ordinary shares of £1 each)		3,000
Accounts payable		135
Accounts receivable	115
Non-current assets: at cost	470
Accumulated depreciation (at 1 July 2022)		290
Marketing expenses	270
Office expenses	300
Retained profits (at 1 July 2022)		370
Production expenses	3,900
Purchases (net of VAT)	5,300
Sales (amounts invoiced, net of VAT)		10,600
Inventory (at 1 July 2022)	290
Trade accounts payable		320
Trade accounts receivable	4,000
Total	10,530	10,530

Additional Information:

1. Inventory at 30 June 2023 was valued at £330,000.
2. At 30 June 2023, £100,000 was owing for office expenses, and £90,000 had been paid in advance for marketing expenses.
3. A customer had gone into liquidation owing the company £460,000; 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: 30%
   • Office: 20%
   • Production: 50%

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

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