The trial balance of Faroe pic at 30 June 1984 was as follows:

Ordinary share capital account Share premium account Preference share capital account General reserve Freehold land and buildings accumulated depreciation, buildings Plant and equipment, at cost accumulated depreciation, plant and equipment 12% Debenture stock Cash at bank Sales Cost of sales Administrative expenses Distribution expenses Stocks at 30 June 1984 Trade debtors and creditors Debenture interest for the year Prepaid expenses and accrued charges Directors' fees ACT recoverable Interim dividend, preference shares ordinary shares

£000 24200 9580 III 43720 I 1946 7835 4209 11423 480 1747 146 225 175 350

£116147

£000 10 500 4300 5000 7340 3860 3190 4000 64 538 8769 4650

£116147 The following additional adjustments are required:

(i) A provision is to be made for an estimated liability for United Kingdom corporation tax on the profits for the year of £276 000.

(ii) Additional dividends are payable as follows:
On preference shares £175000 net On ordinary shares £315 000 net Income tax at the basic rate of 30 per cent is deducted from all dividends paid by the company.
Required Prepare a Profit and Loss Account for the year ended 30 June 1984 and a Balance Sheet at that date for publication by Faroe pic in accordance with the requirements of the Companies Acts 1948-81.