Question: Presented below is a draft set of financial statements for Chips Limited.
The following additional information is available:
1. Purchase invoices for goods received on 29 June 2006 amounting to £23,000 have not been included. This means that the cost of sales figure in the income statement has been understated.
2. A motor vehicle costing £8,000 with depreciation amounting to £5,000 was sold on 30 June 2006 for £2,100, paid by cheque. This transaction has not been included in the company's records.
3. No depreciation on motor vehicles has been charged. The annual rate is 20 per cent of cost at the year end.
4. A sale on credit for £16,000 made on 1 July 2006 has been included in the financial statements in error. The cost of sales figure is correct in respect of this item.
5. A half-yearly payment of interest on the secured loan due on 30 June 2006 has not been paid.
6. The tax charge should be 30 per cent of the reported profit before taxation. Assume that it is payable, in full, shortly after the year-end.
Required: Prepare a revised set of financial statements incorporating the additional information in 1-6 above.
Note: Work to the nearest £1,000.