The following Trial Balance (TB) and additional information as at 30 September 2020 have been extracted from the accounting books and associated records of NAP plc ("NAP"): Assets and Expenses Income, liabilities and Equity Share capital-1.00 shares [Authorised 2m shares; Issued 1m shares] Share Premium Retained earnings at 30/09/2019 Purchases/Sales Sales returns (already deducted from trade receivables) Opening Inventories 01/10/2019 Trade Receivables (Debtors)/Trade payables (Creditors) Provision for bad & doubtful debts - 1/10/2019 Bad Debts written off during year ending 30/09/2020 Salaries & other operating costs (including rent) Equipment cost (See note 2) Equipment accumulated depreciation-01/10/2019 Buildings (See note 3] Buildings revaluation reserve (See note 3) Bank Loan - @4% per annum Interest rate (see note 4) Bank balance '000 200 1,100 000 1,000 300 200 1,000 400 100 140 500 3,000 2,500 800 700 3,000 700 Corporation taxes paid (60% of the overall levy (charge) for year ending 30/09/2020) Interim dividends paid (6c per share) 300 60 Notes/additional information 15,500 15,500 1) On 30 September 2020, the last day of the year, NAP sold goods on credit for 800,000. The goods were sold at a gross profit margin of 40%, and were delivered on this date. The above trial balance has not been updated to reflect this sale, and closing inventory at point (7) below has not been adjusted for this transaction. 2) On 30 September 2020, equipment which had cost 600,000 on 1 October 2018 was sold for 200,000. No aspect of this disposal has been reflected in the above trial balance. The depreciation rate on equipment is 20% of cost. NAP depreciates equipment from date of acquisition to date of disposal. There were no additions to equipment during the year ended 30 September 2020, and this was the only disposal. Question 1 continues on next page 3) No depreciation is charged on buildings, instead an annual revaluation is carried out at the end of each financial year. Due to surplus vacant commercial properties in the area, the value of properties similar to NAP's is continuing to fall. Accordingly, the Board of Directors has decided to eliminate the buildings revaluation reserve. 4) With effect from 1 May 2020, the bank has increased the interest rate on the loan to 6% because NAP did not pay any interest during the year. The loan is due for repayment in 5 equal annual instalments commencing on 31 January 2021. 5) On 31 December 2019, NAP paid rent covering the 12 months to 31 December 2020 of 120,000. No aspect of this transaction has been recorded. 6) NAP currently has 1 million ordinary shares of 1 each in issue. On 30 June 2020, the directors issued a 1 for 5 bonus issue. This bonus issue has not been reflected in the above trial balance. 7) As at 30 September 2020: a. Closing inventories amounted to 1,000,000 (see note 1). b. Employees were owed 60,000 in salaries c. Further bad debts amounting to 60,000 should be written off. d. The bad debt provision at the yearend should be adjusted to 10% of closing debtors. e. Provide for unpaid loan interest. f. Provide for corporation tax still outstanding. g. Provide for a final dividend of 4 cent per share (See note 6)