Brighton Magnets Limited has the following balances in its books at 31 August 20xX9:

£

Closing stock 186 420 Delivery vans at net book value 120 000 Secretarial costs 51 498 Electricity (admin. office) 12 491 Trade creditors 219 411 Factory and plant at net book value 2 518 000 Reserves at 1 September 20X8 eS 57 2.

Share capital: £1 ordinary shares 800 000 Administration office: phone charges 6 964 Interest payable 1 207 Salespersons’ salaries 64 299 Delivery van depreciation 12 000 Other selling and distribution costs 5 911 Office rental 42 704 Other administrative expenses 36 075 Sales 3 796 842 Interest receivable 644 Depreciation of office computer equipment 8 390 Salespersons’ commission 12 270 Office manager's salary 21 704 Directors’ remuneration 59 200 Delivery van expenses 24 470 Debtors 321 706 Office equipment at net book value 151 020 Cash at bank 18 290 Cost of sales ZA 2 S50 Other operating income 12 900 Adjustments are required as follows:

1. Corporation tax on the profits for the year is estimated at £216 470.

2. Dividends of 5p per share should be included in the accounts.

, You are required to prepare a profit and loss account for Brighton Magnets Limited at 31 August 20X9 and a balance sheet at that date. Both financial statements are to be presented in an appropriate Companies Act format.