Brampton Ltd. has an authorised share capital of 100 000 ordinary shares of £1 each and 16 000 8% redeemable preference shares of £1 each. The company’s trial balance as at 30 April 19_6 was as follows:

(1) At 30 April 19_6:

(a) Insurance, £420 was prepaid.

(b) Doubtful debts totalled £900.

(c) Stock totalled £16 500.

(d) A corporation tax provision of £7 000 is to be made.

(e) The directors propose to pay dividend of 10% to the ordinary shareholders.
(2) Depreciation is to be calculated on fixed assets at 20% on the reducing balance basis.
(3) The debenture interest for the second half of the year is to be accrued.
(4) £16 000 8% redeemable preference shares were redeemed at par value on 1 November 19_5. No new shares were issued by the company during the year.
Required:
Trading and profit and loss accounts for the year to 30 April 19_6, and a balance sheet as at that date, prepared in a vertical style.

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Ordinary share capital, fully paid Share premium account Plant and machinery at cost Motor lorries at cost Debtors and creditors 10% Debentures Purchases and sales General expenses Bad debts Stock at 1 May 19_5 Debenture interest for half year to 31 October 19_5 Discounts received Bank Salaries Insurance Directors' fees Provisions for depreciation: Plant and machinery Motor lorries Interim preference dividend (see note 4) Profit and loss account, 1 May 19_5 Provision for doubtful debts, 1 May 19_5 3 80 000 20 000 76 000 114 000 88 960 50 740 18 000 326 978 466 668 17 040 4 800 15 400 900 3.280 72 170 31 420 2 600 32 000 60 000 52 400 640 30 760 1 060 782 908 782 908