At the balance sheet date, deferred income of £42,743 was recognised in respect of customer payments for goods not delivered until after the year-end.
The company does not maintain stock or job costing records sufficient to determine the costs associated with these deferred sales. As a result, no matching asset has been recognised for stock or work in progress, and the reported profit for the year does not fully reflect the timing of related costs. This treatment is considered prudent and consistent with the available information.