The following trial balance relates to the trading activities of Falhstrom Ltd. From this data and the additional information provided you are to construct a set of financial statements.

Additional information:
1 Inventory held at 31 December 2019 was £23,444 2 Depreciation is to be provided on other non-current assets at 5% using reducing balance 3 A provision for tax was to be made for £9,100 4 A transfer of £10,000 was to be made to the general reserve 5 Staff costs owing at the year-end were £2,233 6 Business overheads paid in advance for the following year were £820.

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Falhstrom Ltd Trial balance as at 31 December 2019 Issued ordinary share capital (1 shares) 250,000 Issued preference shares (1 shares) Retained earnings Freehold land Other non-current assets Sales revenue Purchases Opening inventory Business overheads Staffing costs General expenses Directors' remuneration 50,000 36,313 320,000 195,000 312,000 165,090 29,808 43,080 32,877 8,780 15,000 Mortgage on property 100,000 Mortgage interest 6,700 Trade receivables and payables 23,976 21,211 Cash and cash equivalents 9,013 General reserve 45,000 Provision for depreciation of other non-current assets 45,800 Dividends paid 11,000 860,324 860,324