The following trial balance has been extracted from the books of Baganza plc as at 30 September 2017:

Additional information:
1 The inventory at 30 September 2017 was valued at £3,600,000.
2 Depreciation for the year to 30 September 2017 is to be charged on the historic cost of the non-current assets as follows:
Freehold property: 5%
Plant and machinery: 15%
3 The basic rate of income tax is assumed to be 27%.
4 The directors propose a final dividend of 60p per share.
5 The company was incorporated in 2010.
6 Corporation tax based on the profits for the year at a rate of 35% is estimated to be £850,000.
7 A transfer of £40,000 is to be made to the deferred taxation account.

Required:
In so far as the information permits, prepare Baganza plc’s statement of profit or loss for the year ending 30 September 2017, and a statement of financial position as at that date in accordance with the appropriate accounting standards.
However, formal notes to the accounts are not required, although detailed workings should be submitted with your answer, which should include your calculation of earnings per share.

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Administrative expenses Called-up share capital (1,200,000 ordinary shares of £1 each) Cash at bank and in hand Corporation tax (overpayment for the year to 30 September 2016) Deferred taxation (at 1 October 2016) Distribution costs Dividends received (on 31 March 2017) Freehold property: at cost accumulated depreciation (at 1 October 2016) Interim dividend (paid in June 2017) Investments in United Kingdom companies Plant and machinery: at cost accumulated depreciation (at 1 October 2016) Purchases Research expenditure Retained profits (at 1 October 2016) Inventory (at 1 October 2016) Trade accounts payable Trade accounts receivable Revenue £000 400 60 600 2,700 36 2,000 5,200 16,000 75 2,300 2,700 £32,071 £000 1,200 20 460 249 260 3,600 2,022 2,900 21,360 £32,071