The following trial balance has been extracted from Carol Ltd as at 30 April 2004:

Additional information:
1 Stock at 30 April 2004 was valued at £140 000.
2 Depreciation for the year of £28 000 is to be provided on buildings and £9000 for motor vehicles.
3 A provision of £6000 is required for the auditors’ remuneration.
4 £2000 had been paid in advance for renewals.
5 Corporation tax owing at 30 April 2004 is estimated to be £60000 6 The directors propose an ordinary dividend of 10p per share.
7 The market value of the investments at 30 April 2004 was £35 000.
Required:
Prepare Carol Ltd’s trading and profit and loss account for the year to 30 April 2004 and a balance sheet as at that date.

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Advertising Bank overdraft Bank interest paid Dr 000 Cr 000 2 20 20 4 Creditors Debtors Directors' remuneration 80 143 30 Freehold land and buildings: At cost Accumulated depreciation at 1.5.03 General expenses Investments at cost 800 102 15 30 Investment income S Motor vehicles: At cost 36 Accumulated depreciation (at 1.5.03) 18 Preference dividend paid Preference shares (cumulative 10% shares 15 of 1 each) Profit and loss account (at 1.5.03) Purchases Repairs and renewals Sales Share capital (authorized, issued and fully paid ordinary shares of 1 each) Share premium account Stock (at 1.5.03) Wages and salaries 150 100 480 4 900 500 25 120 221 1900 1900