The following information has been extracted from the books of Quire plc as at 30 September 20X1.

The following additional information is to be taken into account:

1. Stocks at 30 September 20X1 were valued at £400,000.

2. All items in the above trial balance are shown net of value added tax.

3. At 30 September 20X1, £130,000 was outstanding for office expenses, and £50,000 had been paid in advance for delivery van licences.

4. Depreciation at a rate of 50 per cent is to be charged on the historic cost of the tangible fixed assets using the reducing balance method: it is to be apportioned as follows:

There were no purchases or sales of fixed assets during the year to 30 September 20X1.

5. The following rates of taxation are to be assumed:

The corporation tax payable based on the profits for the year to 30 September 20X1 has been estimated at £80,000.

6. A transfer of £60,000 is to be made from the deferred taxation account.

7. The directors propose to pay a final ordinary dividend of 3p per share.

Required:

In so far as the information permits, prepare Quire plc’s profit and loss account for the year to 30 September 20X1, and a balance sheet as at that date in accordance with the MINIMUM requirements of the Companies Act 1985 and related accounting standards.

Note: Formal notes to the accounts are NOT required, but detailed workings should be submitted with your answer.

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Bank overdraft Called-up share capital (ordinary shares of £1 each) Deferred taxation Delivery expenses Fixed assets: at cost accumulated depreciation (at 1 October 20X0) Debentures held Debenture interest (net) Interest payable Interim dividend paid Office expenses Other creditors Other debtors Profit and loss account (at 1 October 20X0) Purchases Sales Stocks (at 1 October 20X0) Trade creditors Trade debtors £000 2,800 3,500 100 400 60 3,000 160 12,000 500 5,320 £27,840 £000 2,400 4,000 200 1,100 40 180 820 19,000 100 £27,840