Camden Lock Ltd has just finished its first year of trading to 31 December 20X6. Corporation tax throughout was 40 per cent and income tax 20 per cent. You are given the following information:

(i) Net trading profit, after adjustment for (ii) but before other adjustments, was £390,000.

(ii) Depreciation of £70,000 was charged. Capital allowances were £110,000.

(iii) An interim dividend of 4 per cent on 800,000 £1 ordinary shares was paid on 1 July 20X6.

(iv) Debenture interest of £14,000 (net) was paid on 31 December 20X6.

(v) Income tax deducted from debenture interest was paid on 31 January 20X7.

(vi) A final dividend of 6 per cent was proposed for the year.

(vii) Corporation tax for the year was estimated to be £145,000.

You are required to:

(a) Draw up the double entry accounts recording the above (except bank);

(b) Show the relevant extracts from the profit and loss account and the balance sheet.