Wolverhampton plc is a manufacturing company. The following balances have been extracted from its books and records as at 30 June 2021:
£ £
Revenue 912,000
Inventories on 01 July 2020 45,000
Purchases 300,000
Distribution costs 132,000
Administrative expenses 204,000
Dividends paid 74,400
Land (£150,000) & buildings (£750,000) at cost 900,000
Accumulated depreciation 57,600
Plant and machinery cost 390,000
Accumulated depreciation 96,000
Motor vehicles cost 150,000
Accumulated depreciation 54,000
Trade receivables 414,000
Trade payables 228,000
Prepayments 210,000
Accruals 102,000
Bank balance 132,000
Overdraft 66,000
Bank loan 145,800
Share capital – ordinary shares of £1 each 468,000
Retained earnings 792,000
Share premium account 30,000
2,951,400 2,951,400

The following information has not yet been taken account of:
i. A further adjustment is required in respect of receivables as an amount due from Smith ltd of £4,000 needs to be written off.
ii. The company has a policy of including a general provision for doubtful debts of 10% of year-end accounts receivable.
iii. Administrative expenses include £3,550 a prepayment and a total of £3,700 accrued expenses.
iv. The company has the following depreciation policy:
Buildings 10% straight line
Plant and machinery 20% reducing balance
Motor vehicles 25% reducing balance
Depreciation costs should be allocated as follows:
Depreciation on buildings
Cost of sales 50%
Administration 50%
Depreciation on plant and machinery
Cost of sales 100%
Depreciation on delivery motor vehicles:
Distribution cost 100%
v. The net realisable value of inventory at 30 June 2021 was £5,500 less than its cost of £50,750.
vi. Income tax of £8,500 has been estimated and is to be recognised in the financial statements for the year ended 30 June 2021.
Required:
a) Prepare a statement of profit or loss for Wolverhampton plc for the year ended 30 June 2021. [15 marks]
b) Prepare a statement of financial position for Wolverhampton plc as at 30 June 2021. [10 marks]