You have been asked to help prepare the financial statements of Laing Ltd (Laing) for the year ended 31 March 2020. The companys trial balance as at 31 March 2020 is shown below.

• 	Debit	Credit
  	000	000
  Plant & equipment at cost	46,330
  Plant & equipment accumulated depreciation at 31 March 2020		16,451
  Land (valuation) at 1 April 2019	12,000
  Trade and other payables		22,916
  Trade and other receivables	20,007
  Allowance for doubtful debts		1,346
  Cash at bank	14,554
  Retained earnings at 1 April 2019		14,612
  Share capital (1 shares)		14,800
  Share premium		5,200
  Revaluation reserve as at 1 April 2019		4,000
  Draft profit for the year		8,500
  6% loan note		13,000
  Corporation Tax		85
  Deferred taxation as at 1 April 2019		126
  Inventories at 31 March 2020	8,145
  	101,036	101,036

  After the year-end, inventories that cost 260,000 were found to be damaged and could only be sold for 132,000.

• The land was revalued at 31 March 2020 and because of the effects of Brexit was found to be worth only 6 million. The land had an original cost of 8 million. Ignore deferred taxation effects of this revaluation.

• At the year-end, Laing carried out an impairment test on its fleet of delivery vehicles which had a carrying amount of 2,400,000. The fair value, less costs to sell, of these delivery vehicles was deemed to be 1,693,000 and the value in use was calculated as 1,912,000. No adjustment has yet been made in respect of this impairment test.

• The allowance for doubtful debts is to increase to 1,700,000 at 31 March 2020.

• Laing pays annual rent for its head office in advance. An amount of 480,000 was paid on 1

  July 2019.

• Laing needs to accrue outstanding audit fees of 300,000.

• The 6% loan note was issued on 1 April 2019 at its nominal value of 13 million. The direct costs of issue were 500,000 and these were charged to administrative expenses. The loan note will be redeemed at a premium in 2025. The effective rate of interest is 8% per annum. 6 months interest on the loan note was paid and charged to profit or loss on 1 October. No accrual was made for the other 6 months.

• The corporation tax balance of 85,000 included in the trial balance was the result of an over- estimate of the tax liability for the previous year. The corporation tax charge in respect of the profits for the current year to 31 March 2020 is estimated to be 1,680,000.

• At 31 March 2020, the tax base of Laing net assets (excluding land) was 4 million less than their carrying amounts. The movement on deferred tax should be taken to profit or loss. The income tax rate of Laing is 20%.

• The company issued 5,000,000 new ordinary shares during the year at an issue price of 1.60 per share (paid in cash) on 31 January 2020. The share issue has been correctly recorded in the trial balance at 31 March 2020.

• The company paid dividends of 5p per share on 31 December 2019 and 4p per share on 31 March 2020. The dividends paid have been treated as an expense in the calculation of the draft profit for the year.

REQUIRED

1. (i) Calculate the revised profit figure for the year to 31 March 2020.

2. (ii) Draft the statement of financial position for Laing Ltd as at 31 March 2020