The Huby Haulage Company Ltd produced the following trial balance at the end of December 20X0. Using this and the additional information following prepare a profit and loss account, appropriation account and balance sheet for the year ended 31 December 20X0.

(a) Drivers’ claims for £150 relating to overnight expenses had not been taken into account.

(b) The parts and consumables account included parts valued at 1 January 20X0 at £15,000.

(c) A stock take at 31 December revealed that parts valued at £18,000 were held at that date. It was estimated that there was a prepayment of £4,000 with regard to licences and insurance at the end of 20X0.

(d) Depreciation of £62,500 is to be charged on vehicles for the year to 31 December 20X0.

(e) Tax is estimated at £22,400.

(f) There is a proposed dividend of £20,000.

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1 ordinary shares fully paid Retained profit 200,000 70,000 10% Debenture 50,000 Sales 365,000 Bank and cash 20,000 Motor lorries - at cost 360,000 - accumulated depreciation 110,000 Freehold property 165,000 Repairs and renewals 22,000 Drivers' wages 60,000 Maintenance wages 15,000 Parts and consumables 70,000 Licences and insurance 20,000 Administration salaries 20,000 Sundry administrative expenses 12,000 Drivers' overnight expenses 6,000 Directors' salaries 25,000 795,000 795,000