Pebble plc is a wholesaling company whose balances at 31 December Year 3 included the following:

(1) The item ‘income from investments’ included £12 000 from shares in group companies, with the balance from related companies.
(2) The profit on sale of land is considered to be an extraordinary item.
(3) Stock at 31 December was valued at £335 000.
(4) Accumulated provisions for depreciation of delivery vehicles and of office equipment are to be increased by £13 000 and £18 000 respectively.
(5) The goodwill arose on the takeover of a business which has proved to - be unprofitable. Accordingly it has been decided to write it off.
Required: .
Prepare as far as the given information permits, the company’s Profit and Loss Account for the year ended 31 December Year 3, in a form suitable for distribution to its shareholders. Give only the minimum information required by the Companies Act 1981.

Transcribed Image Text:

Undistributed profits brought forward from Year 2 Sales Purchases Carriage Inwards 000 2 778 Return Inwards Return Outwards Stock (1 January Year 3) Goodwill Rents receivable General distribution costs Administration wages and salaries Salesmen's salaries and warehouse wages Other administrative costs Income from investments Profit on sale of land 10 200 6131 21 120 117 380 33 4 171 17 16 88 19 100