The following information has been extracted from the books of account of Billinge plc as at 30 June 20X6:

Additional information:

1. The company was incorporated in 20X0.

2. The stock at 30 June 20X6 (valued at the lower of cost or net realisable value) was estimated to be worth £100,000.

3. Fixtures, fittings, tools and equipment all related to administrative expenses. Depreciation is charged on them at a rate of 20 per cent per annum on cost. A full year’s depreciation is charged in the year of acquisition, but no depreciation is charged in the year of disposal.

4. During the year to 30 June 20X6, the company purchased £60,000 of equipment. It also sold some fittings (which had originally cost £20,000) for £3,000 and for which depreciation of £15,000 had been set aside.

5. The corporation tax based on the profits for the year at a rate of 35 per cent is estimated to be £100,000. A transfer of £40,000 is to be made to the deferred taxation account.

6. The company proposes to pay a dividend of 20p per ordinary share.

7. The standard rate of income tax is 30 per cent.

Required:

In so far as the information permits, prepare Billinge plc’s profit and loss account for the year to 30 June 20X6, and a balance sheet as at that date in accordance with the Companies Acts and appropriate accounting standards.

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Administration expenses Cash at bank and in hand Cash received on sale of fittings Corporation tax (over-provision for the previous year) Deferred taxation Depreciation on fixtures, fittings, tools and equipment (1 July 20X5) Distribution costs Factory closure costs Fixtures, fittings, tools and equipment at cost Profit and loss account (at 1 July 20X5) Purchase of equipment Purchases of goods for resale Sales (net of VAT) Share capital (500,000 authorised, issued and fully paid ordinary shares of £1 each) Stock (at 1 July 20X5) Trade creditors Trade debtors Dr £000 242 157 55 30 340 60 855 70 500 £2,309 Cr £000 3 10 60 132 40 1,500 500 64 £2,309