The following figures have been extracted from the accounting records of Volumes Limited, a book binder, at 30 September 2019:

Additional information

• Inventory at 30 September 2019 was valued at a cost of £150,000.

• Taxation on the profit for the year has been estimated to be £250,000.

• All depreciation charges for the year to 30 September 2019 have been calculated in the balances above.

Required

Using the list of balances and the additional information prepare the statement of profit or loss and statement of financial position for Volumes Limited in a form suitable for publication. You will need to produce a working to calculate cost of sales. You may find that consulting Illustrations 2.1 and 3.1 will assist you in the preparation of the statement of profit or loss and statement of financial position.

Transcribed Image Text:

Plant and machinery: cost Plant and machinery: accumulated depreciation at 30 September 2019 Sales Trade receivables Administration expenses Selling and distribution costs Production costs Finance expense Cash at bank Loan (due 30 September 2028) Trade payables Finance income Called up share capital Share premium Retained earnings at 30 September 2018 Inventory at 1 October 2018 Production wages Assets and expenses £000 2,000 430 300 200 2,600 100 175 100 1,000 6,905 Income, liabilities and equity £000 800 4,750 500 300 25 250 125 155 6,905