From the following selected balances of State plc as at 31 December 20X8, prepare 

(i) A detailed trading and profit and loss account for the year ended 31 December 20X8 for internal use and 

(ii) A profit and loss account for the same period for publication.

Notes:

(a) The production department puts goods bought into a saleable condition.

(b) Stock at 31 December 20X8 £160,000.

(c) Apportion motor expenses: distribution 3/4, administrative 1/4.

(d) Apportion rent and business rates: distribution 40 per cent, administrative 60 per cent.

(e) Write £26,000 off the value of investments in undertakings in which the company has a participating interest.

(f ) Depreciate motor vehicles 25 per cent on cost, plant and machinery 15 per cent on cost.

(g) Accrue auditors’ remuneration £14,000.

(h) Accrue corporation tax on ordinary activity profits £104,000.

(i) A sum of £25,000 is to be transferred to debenture redemption reserve.

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Stock 1 January 20X8 Sales Purchases Carriage inwards Returns inwards Returns outwards Discounts allowed Discounts received Wages (putting goods into saleable condition) Salaries and wages: Sales and distribution staff Salaries and wages: Administrative staff Motor expenses (see Note (c)) Rent and business rates (see Note (d)) Investments in undertakings in which the company has a participating interest £ 140,000 1,860,000 1,140,000 8,000 9,000 5,000 11,000 14,000 88,000 62,000 74,000 24,000 28,000