You are required to prepare a balance sheet for Trainer plc as at 31 December 2010 using the trial balance at 31 December 2010 and the additional information shown on the next page.

Additional information: the company will be paying £20,000 for corporation tax on the 2010 profi t during 2011.

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Debit Credit 000 000 Bank balance Ordinary share capital 73 320 Land and buildings at cost 320 Plant and machinery at cost 200 Cumulative depreciation provision (charge for year 2010 was 20,000) 80 Inventories 100 Revenue 1,000 Cost of sales 600 Operating expenses 120 Depreciation 20 Bad debts written off 2 100 Accounts receivable Accruals Accounts payable 5 130 1,535 1,535