Xi Ltd
 Date: 31 March 2024

Trial Balance:

Description	Dr (£000)	Cr (£000)
Bank overdraft		215
Called-up share capital (ordinary shares of £1 each)		5,200
Accounts payable		245
Accounts receivable	225
Non-current assets: at cost	690
Accumulated depreciation (at 1 April 2023)		510
Marketing expenses	490
Office expenses	520
Retained profits (at 1 April 2023)		590
Production expenses	6,100
Purchases (net of VAT)	7,500
Sales (amounts invoiced, net of VAT)		15,000
Inventory (at 1 April 2023)	510
Trade accounts payable		540
Trade accounts receivable	6,200
Total	14,090	14,090

Additional Information:

1. Inventory at 31 March 2024 was valued at £580,000.
2. At 31 March 2024, £210,000 was owing for office expenses, and £200,000 had been paid in advance for marketing expenses.
3. A customer had gone into liquidation owing the company £680,000; 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: 20%
   • Office: 30%
   • Production: 50%

Note:
 There were no acquisitions or disposals of non-current assets during the year to 31 March 2024.

Required:
 Prepare Xi Ltd’s income statement for the year ending 31 March 2024, and a balance sheet as at that date.