Jackson Printing Company Limited, a small private company, has produced its unaudited balance sheet as at 31 March 19_4.

In the course of your audit you find that:
(1) During the year a motor van was sold for £1 100. The van was bought four years ago at a cost of £10 000 and had been depreciated to £2 000.
Proceeds were included in sales and no other entries had been made.
(2) The land and buildings had been revalued by a surveyor at freehold land £20 000 and buildings at £50 000. The directors wish to incorporate these new values in the balance sheet and to depreciate the buildings at 2% per annum.
(3) A debtor, owing the company £1 000, is unlikely to pay and should be written off.
Required:

(a) journal entries to adjust the balance sheet as at 31 March 19_4 for items referred to above (supporting narrative is not required), and

(b) a balance sheet as at 31 March 19_4, after the adjustments as in (1)
above.

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3 Fixed Assets Tangible Assets: Freehold land and buildings Plant and machinery 60 000 40 000 Accumulated depreciation 18 000 22 000 Motor vans 25.000 Accumulated depreciation 11 000 14.000 96.000 Current Assets: Stocks Debtors 10 000 14.000 Cash 1 200 Current Liabilities - amounts 25 200 falling due within one year: Creditors 10 000 Bank 6 000 16.000 9 200 105 200 Equity and Reserves: Called up shares Retained profits 75 000 30 200 105 200