The following is the trial balance of Tully Ltd as on 31 December 20X5:

Given the following information, you are to draw up a trading and profit and loss account for the year ending 31 December 20X5, and a balance sheet as at that date:

(i) Authorised share capital: £500,000 in ordinary shares of 20p.

(ii) Stock at 31 December 20X5 £102,400.

(iii) Motor expenses owing £280.

(iv) Ordinary dividend proposed of 5 per cent.

(v) Transfer £7,500 to general reserve.

(vi) Provide for depreciation: motor vehicles and machinery 20% on cost; premises 5% on cost.

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Share capital issued: ordinary shares 20p Debtors and creditors Stock 31 December 20X4 Bank Premises at cost Machinery at cost Motor vehicles at cost Depreciation provisions at 31.12.20X4: Premises Machinery Motor vehicles Sales Purchases Motor expenses Repairs to machinery Sundry expenses Wages and salaries Directors' remuneration Profit and loss account as at 31.12.20X4 General reserve Dr £ 169,600 81,300 17,900 265,000 109,100 34,700 623,800 4,300 3,600 2,900 241,500 82,600 1,636,300 Cr £ 375,000 74,900 60,000 41,400 18,200 975,600 31,200 60,000 1,636,300