The following trial balance has been extracted from the accounting system of Pendle Ltd at 31 March 1998: The finance director has asked your help in presenting the information in a form suitable for publication. You have been given the following extra information: (i) The company's leasehold property has a 999 year lease. It was revalued at 21 800 000 in March 1998 by J.R. Fox, chartered surveyor. The directors wish to use the valuation in the reports. (ii) The company made a bonus issue of 2 ordinary shares, fully paid for each share held, on 1 October 1997. No entries have been made in the records for this issue.

Ordinary 1 shares Retained profit at 1 April 1997 10% Debentures 2012 Leasehold land and buildings at cost Computer equipment at cost Accumulated depreciation on computer equipment Trade debtors Prepayments Stocks of raw materials Work in progress Bank balance Provision for doubtful debts Creditors Sales Cost of sales Office expenses Marketing expenses Bad debts written off General repairs Debenture interest to 30 Sept 1997 800 000 2 600 000 720 000 20 160 1 808 000 160 040 536 000 1 000 000 2 078 000 600 000 1 024 000 4 083 200 433 800 300 800 17 400 -50 400 30 000 703 000 6 124 800 30.000 11 559 800 11 559 800 (iii) The directors propose to pay a dividend of 5p per share for every share in issue on 31 March 1998.. (iv) The company purchased new fittings on 30 March 1998 and these were delivered to the company on 31 March 1998 but not recorded, paid for or used before April. The invoice for 240 000 came with the equipment. (v) Depreciation has not yet been adjusted. It is to be provided on the reducing balance method at 25 per cent on all computer equipment in use at the e year end. Ignore the fittings in (iv) above. (vi) Corporation tax of 300 000 is to be provided for. (vii) The company's authorized share capital is 4 million ordinary shares of 1 each.

Required Prepare the profit and loss account and balance sheet for publication in the formats required by the Companies Act 1985.