The following is the trial balance of Pyramid Ltd as at 30 November 2021.                                                                                              Debit                 Credit                                                                                                  £                     £ Sales                                                                                                               2,465,000  Other operating income                                                                                   25,000  Inventory at 1 December 2020                                                367,000  Purchases                                                                               1,245,000  Administration expenses                                                         198,000  Distribution expenses                                                               75,000  Marketing expenses                                                                 298,200  Salaries                                                                                    412,000  Rent                                                                                          25,500  Energy                                                                                      15,300  Computer equipment - cost                                                      405,000  Computer equipment - accumulated depreciation                                            230,000  Motor vehicles - cost                                                                 265,000  Motor vehicles - accumulated depreciation                                                      146,000  Non-current investments                                                           26,000  Receivables                                                                               388,000  Allowance for receivables                                                                                  13,000  Payables                                                                                                            252,400  Cash and cash equivalents                                                        250,200  Ordinary £1 shares                                                                                             560,000  Share premium                                                                                                   26,000  Retained earnings as at 1 December 2020                                                        210,800  5% debentures                                                                                                   76,000  Interim dividend paid                                                                   13,000  Suspense account                                                                       21,000  Total                                                                                            4,004,200      4,004,200    The following information is relevant: 1. Closing inventory at 30 November 2021 is £375,000. 2. On further investigation of the suspense account in the trial balance above, it  was discovered that a cash payment made on 1 July 2021 of £21,000 posted to  the suspense account represents the cost of purchase of computer equipment. 3. Pyramid Ltd depreciates non-current assets as follows: • computer equipment at 15 per cent on a straight line basis • motor vehicles at 20 per cent on a reducing balance basis 4. Depreciation is charged on a monthly basis. No depreciation for the year ended  30 November 2021 has been entered into the accounting records. 5. On 30 November 2021, Pyramid Ltd. decided to write off a trade receivable of  £5,500 and to make an allowance for irrecoverable receivables of 3 per cent of  the outstanding receivables at that date. No entries have been made in the  nominal ledger accounts. 6. A full year’s debenture interest is to be accrued. 7. Energy costs have been paid up to 30 September 2021. The next invoice  covering the period 1 October 2021 to 31 December 2021 is expected to be for  about £5,200. 8. On 1 July 2021 Pyramid Ltd paid £17,000 for rent to cover the period 1 July  2021 to 31 December 2021. 9. For the financial year ended 30 November 2021, corporation tax is estimated to  be £27,800 and the audit fee is estimated to be £8,000. 10. Pyramid Ltd allocates expenses as follows: • depreciation on motor vehicles is allocated to distribution expenses • depreciation on computer equipment is allocated to administration expenses • salary is allocated 80% to administration and 20% to distribution expenses • energy expenses are allocated 70% to administration and 30% to distribution  expenses • rent is allocated to administration expenses. Required: Prepare an income statement for the year ended 30 November 2021 and a balance  sheet as at 30 November 2021 for Pyramid Ltd.