The trial balance of Harmonica Ltd at 31 December 20X1 is given below.

Additional information
1. Closing inventory amounted to £5m.
2. A review of the trade receivables total of £6.9m showed that it was necessary to write off debts totalling £0.4m, and that the provision for doubtful debts should be adjusted to 2 per cent of the remaining trade receivables.
3. Two transactions have been entered in the company's cash record and transferred to the suspense account shown in the trial balance. They are:
a. The receipt of £1.5m from the issue of 500,000 £1 equity shares at a premium of £2 per share.
b. The sale of some surplus plant. The plant had cost £1m and had a written down value of £100,000. The sale proceeds of £150,000 have been credited to the suspense account but no other entries have been made.
4. Depreciation should be charged at 10 per cent per annum on cost at the end of the year and allocated 70 per cent to distribution costs and 30 per cent to administration.
5. The directors propose a final dividend of 4 pence per share on the shares in issue at the end of the year.
6. Accruals and prepayments still to be accounted for are:
___________________________PrepaymentsAccruals
General administrative expense..........70.........................140
General distribution expenses............40...........................90
..............................................110.........................230
7. Directors' remuneration is to be analysed between distribution costs and administrative expenses as follows:
Distribution...............300
Administration............570
..............................870
8. Ignore taxation.
Required
Prepare the company's statement of comprehensive income and statement of changes in equity for the year ended 31 December 20X1, and statement of financial position as at 31 December 20X1 in a form suitable for publication. Notes to the financial statements are not required.

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Credit '000 28,600 Purchases and sales revenue Inventory at 1 Januory 20XI Warehouse wages Salespersons salaries and commission Administrative salaries General administrative expenses General distribution expenses Directors' remuneration Debenture interest paid Dividends interim dividend paid Non-current asset:s Debit £ 000 18,000 4,500 850 1,850 3,070 580 490 870 100 40 -cost 18,000 -aggregate depreciation, 1 January 20X1 Trade receivobles and payables Provision for doubtful debts ot 1 Jonuary 20X1 Balance at bank 10% debentures (repayable 20X5) Called-up share capital (1 equity shares Share premium account Retained earmings, 1 Januory 20X Suspense account (see note 3 below) 3,900 3,800 200 2,080 1,000 4,000 1,300 8,720 1,650 55,250 6,900 55,250