The trial balance extracted from the books of Tailor Times Ltd at 31 December 20X3 was as follows:

You are given the following additional information:

(i) The authorised and issued share capital is divided into 400,000 ordinary shares of 50p each.

(ii) Stock in trade at 31 December 20X3, £94,300.

(iii) Wages and salaries due at 31 December 20X3 amounted to £1,800.

(iv) Business rates paid in advance at 31 December 20X3 amounted to £700.

(v) A dividend of £20,000 is proposed for 20X3.

(vi) The provision for doubtful debts is to be increased to £1,500.

(vii) A depreciation charge is to be made on freehold premises of £25,000 and machinery at the rate of 20 per cent per annum on cost.

Required:

A trading and profit and loss account for 20X3 and a balance sheet as at 31 December 20X3.

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Share capital Profit and loss account 31 December 20X2 Freehold premises at cost Provision for depreciation on freehold premises at 31 December 20X2 Machinery at cost Provision for depreciation on machinery account as at 31 December 20X2 Purchases Sales General expenses Wages and salaries Business rates Electricity Bad debts Provision for doubtful debts at 31 December 20X2 Debtors Creditors Stock in trade 31 December 20X2 Bank balance 4 271,000 84,000 563,700 14,600 179,400 6,100 4,800 1,400 74,200 81,900 16,200 1,297,300 £ 200,000 27,500 54,000 21,000 925,300 1,200 68,300 1,297,300