Pecnut Ltd's trial balance at 31 March 2004 was as follows.

Further information 

1. Stock at 31 March 2004: $105 000. 

2. The freehold buildings are to be revalued to $2 000 000 at 31 March 2004. 

3. The motor vehicles are to be depreciated at the rate of 25% using the reducing balance method. 

4. $10 000 is to be transferred to General Reserve. 

5. The directors have recommended a dividend of $0.25 per share. 

Required 

(a) Prepare Pecnut Ltd's Profit and Loss Account for the year ended 31 March 2004. 

(b) Prepare the Balance Sheet as at 31 March 2004. 

(c) Companies should prepare their annual accounts on the basis that they are going concerns. Explain what this means and how their annual accounts will be affected if they are not going concerns.

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iste wolt des). Issued share capital: ordinary shares of $1 each General Reserve 10% debentures 2007-2010 Freehold buildings at cost Provision for depreciation of freehold buildings Motor vehicles at cost Provision for depreciation of motor vehicles Trade debtors Bank balance Stock at 1 April 2003 Trade creditors Retained profit at 31 March 2003 Sales $000 1500 Purchases Selling and distribution Administration wolt dass 6:21 for Debenture interest 246 96 85 1152 540 648 18 4285 $000 600 120 360 180 162 51 60 69 2683 4285