Reference no: EM132619086

                                                                               Dr                            Cr

                                                                                                £000                   £000

Land and buildings                                                   1,200

Plant and machineary                                               1,500

Stock of finished goods & raw materials at 1st Jan 2017   750

Receivables                                                             550

Cash                                                                        380

Payables                                                                                          820

Bank loan (@ 8% interest)                                                                   800

Sales                                                                                               5300

Purchase                                                                 3700

Work expense                                                            300

Administration expenses                                              300

Distribution expenses                                                   280

Interest                                                                         32

Share capital                                                                                          1500

Retained profit                                                                                         552

The following items need to be adjusted for;

1. Depreciation of £360,000 on plant and machinery has not yet been accounted for.
2. An invoice for gas supplies has been received in mid-January but has not yet been paid or accounted for. The invoice is for a total amount of £60,000 and covers the three month period 16/10/2017 to 15/1/2018.
3. A stock-take at 31/12/2017 has calculated that stock of raw materials and finished goods amounted to £640,000 in total.
4. Debts of £35,000 are considered to be bad and not collectable.
5. Interest on the long-term loan has not been paid or provided in the accounts for the second half of the year.
6. For financial statement purposes, the land and buildings were re-valued at £1,450,000 at 31/12/20

Problem 1: Prepare a draft Balance Sheet on 31st December 2017.