The trial balance of Shillyshally Ltd at 30 June 2004 is as follows.

Further information 

1. Stock at 30 June 2004 was valued at $38 000. 

2. Account is to be taken of the following at 30 June 2004.

Accrued expenses: delivery vehicle expenses $2000 office expenses $3000 

Prepaid expense: advertising $6000 

3. Freehold premises were revalued to $1 200 000 at 30 June 2004. 

4. Depreciation is to be provided as follows for the year ended 30 June 2004. 

Delivery vehicles: 25% on the reducing balance 

Office machinery: 10% on cost 

5. Debenture interest is payable half-yearly on 1 July and 1 January.

6. Taxation is to be provided for in the sum of $16 000. 

7. $50 000 is to be transferred to the General Reserve. 

8. The directors have recommended a final dividend of 3% on the ordinary shares. 

Required 

(a) Prepare Shillyshally Ltd's Profit and Loss Account for the year ended 30 June 2004. 

(b) Prepare the Balance Sheet at 30 June 2004.

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Freehold premises at cost Provision for depreciation of freehold premises Delivery vehicles at cost Provision for depreciation of delivery vehicles Office machinery at cost Provision for depreciation of office machinery Trade debtors Trade creditors Balance at bank 12% debentures 2006/2008 800 000 ordinary shares of $1 100 000 8% preference shares of $1 General Reserve Profit and Loss Account at 30 June 2003 Turnover $ 1 000 000 80 000 70 000 82 000 67 000 60 000 28 000 21 000 33 000 100 000 800 000 100 000 50 000 7.000 1 000 000