Upsilon Ltd
 Date: 30 June 2024

Trial Balance:

Description	Dr (£000)	Cr (£000)
Bank overdraft		125
Called-up share capital (ordinary shares of £1 each)		3,400
Accounts payable		155
Accounts receivable	135
Non-current assets: at cost	510
Accumulated depreciation (at 1 July 2023)		330
Marketing expenses	310
Office expenses	340
Retained profits (at 1 July 2023)		410
Production expenses	4,300
Purchases (net of VAT)	5,700
Sales (amounts invoiced, net of VAT)		11,400
Inventory (at 1 July 2023)	330
Trade accounts payable		360
Trade accounts receivable	4,400
Total	10,890	10,890

Additional Information:

1. Inventory at 30 June 2024 was valued at £370,000.
2. At 30 June 2024, £120,000 was owing for office expenses, and £110,000 had been paid in advance for marketing expenses.
3. A customer had gone into liquidation owing the company £500,000; the company does not expect to recover any of this debt.
4. The company decides to set up an allowance for doubtful debts amounting to 5% of the outstanding trade accounts receivable as at the end of each financial year.
5. Depreciation is to be charged on the non-current assets at a rate of 20% on cost; it is to be apportioned as follows:
   • Marketing: 30%
   • Office: 20%
   • Production: 50%

Note:
 There were no acquisitions or disposals of non-current assets during the year to 30 June 2024.

Required:
 Prepare Upsilon Ltd’s income statement for the year ending 30 June 2024, and a balance sheet as at that date.