You are given the following information for Rinchi Ltd in relation to its financial year ended 31 May 2024:

Further information:
(i) The company’s inventory was counted on 31 May 2024 and was valued at a cost of £19,994.
(ii) Depreciation is to be charged at the following rates per annum:

(iii) The amount shown for business rates on the trial balance includes a payment of £11,340 which represents twelve months’ rates to 30 September 2024.
(iv) Gas charges incurred before the end of the financial year for which no invoices have yet been received amount to a total of £3,956.
(v) Following a detailed analysis of the company’s experience with collections from credit customers, the allowance for doubtful debts is to be set at 3% of trade receivables.
(vi) The loan note interest is paid in two annual instalments and the second instalment needs to be provided for.
(vii) The corporation tax charge on the profit for the year is estimated to be £10,000.

Required Prepare an income statement for Rinchi Ltd for the year ended 31 May 2024 and a balance sheet as at that date:

(a) for internal use; and

(b) in a form suitable for publication (or ‘external use’).

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Trial balance as at 31 May 2024: Trade receivables Business rates Trade payables Carriage inwards Dividends paid Inventory as at 1 June 2023 Gas Sundry operating expenses Sales Plant & equipment IT equipment Plant & equipment: accumulated depreciation at 1 June 2023 IT equipment: accumulated depreciation at 1 June 2023 Purchases Cash at bank 3% loan notes 2030-2032 Loan note interest paid Bad debt expense Allowance for doubtful debts at 1 June 2023 Ordinary shares of 10p each Retained earnings at 1 June 2023 Dr 93,600 19,987 2,015 14,720 18,543 19,914 77,904 397,140 276,120 228,147 357 1,455 11,062 1,160,964 Cr 51,463 556,456 94,500 70,440 97,000 1,885 133,000 156,220 1,160,964