The trial balance for Waterford plc as at 31 May 20x6 is shown below. f f 25,000 9.000 675 567 14,000 48,144 45,998 Equity share capital (1 per share) Share premium Trade payables Trade receivables 8,890 Accruals 7.5% bank loan repayable in 8 years Cash at bank 5,678 Retained earnings inter Interest 600 teles Gross profit Administrative expenses 27,557 Distribution costs 10,089 Dividends paid 600 Closing inventories 3,757 Property (freehold land and buildings) - cost 80,000 Property (freehold land and buildings) - accumulated depreciation as at 1 June 20x5 Plant and equipment -cost 26,100 Plant and equipment - accumulated depreciation as at 1 June 20X5 Motor vehicles - cost 17,000 Motor vehicles - accumulated depreciation as at 1 June 20X5 Suspense 180.271 7,000 7,086 5,200 17,601 180,271 The company's depreciation policy is as follows Buildings Plant and equipment Motor vehicles Straight-line over 50 years 15% reducing balance 25% straight-line The cost of the land within the cost of property was 500, and all non-current assets are assumed to have zero residual values. There were no additions to non-current assets during the year ended 31 May 20x6. Depreciation on buildings is charged to administrative expenses, and depreciation on plant and equipment and motor vehicles is charged to cost of sales. (1) On 1 June 20x5 motor vehicles purchased on 1 July 20x4 at a cost of 8,000 were disposed of for 2,500. The cash received has been correctly recorded but the only other entry was to the suspense account. (2) Income tax for the year ended 31 March 20x6 is estimated at 8,000. (3) Within the closing inventory carried at cost is an over-allocation of fixed overheads, of 78. (4) During the year, Waterford plc made a 1 for 4 bonus issue from share premium. The correct entry to share premium has been made, but the corresponding entry was posted to the suspense account. (5) An accrual needs to be made for the remainder of the interest expense for the year. (6) At 31 May 20x6 Waterford plc determined that 650 owing from a customer is required to be written off as irrecoverable, and an allowance for receivables of 3% of the remaining receivables is necessary. Irrecoverable debts are considered an administrative expense. (7) An adjustment has been made to remove 8,851 for sales made in May 20X6 for products to be delivered in June 20X6. The correct entry has been made to the revenue account but the corresponding entry has been posted to the suspense account. (8) On 31 May 20x6 Waterford plc paid an insurance premium for annual cover up to 31 May 20x7. The full 55 was included within administrative expenses at 31 May 20x6. Requirement Prepare the statement of profit or loss for Waterford plc for the year ended 31 May 20x6 and the statement of financial position at that date