Here is the trial balance of Falta Ltd as at 30 April 20X5:

Given the following information as at 30 April 20X5, draw up a profit and loss account and balance sheet for the year to that date:

(i) Stock £111,317.

(ii) The share capital consisted of 300,000 ordinary shares of 50p each and 50,000 12 per cent preference shares of £1 each. The dividend on the preference shares was proposed to be paid as well as a dividend of 18 per cent on the ordinary shares.

(iii) Accrued: rent £802; Directors’ remuneration £6,000.

(iv) Debenture interest ¹/2 year’s interest owing.

(v) Depreciation on cost: Equipment 20 per cent; Motor vehicles 25 per cent.

(vi) Transfers to reserves: General reserve £5,000; Fixed assets replacement reserve £10,000.

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Share capital: authorised and issued Stock as at 30 April 20X4 Debtors Creditors 8% debentures Fixed assets replacement reserve General reserve Profit and loss account as at 30 April 20X4 Debenture interest Equipment at cost Motor vehicles at cost Bank Cash Sales Purchases Returns inwards Carriage inwards Wages and salaries Rent, business rates and insurance Discounts allowed Directors' remuneration Provision for depreciation at 30 April 20X4: Equipment Motor vehicles Dr £ 102,994 227,219 1,600 225,000 57,200 4,973 62 419,211 18,400 1,452 123,289 16,240 3,415 82,400 1,283,455 Cr £ 200,000 54,818 40,000 30,000 15,000 12,411 880,426 32,600 18,200 1,283,455