From the following balances in the books of Breaker plc you are to draw up (i) a detailed trading and profit and loss account for the year ending 31 March 2004 for internal use, and (ii) a profit and loss account for publication:

(a) Stock at 31 March 2004 £230,000.

(b) Accrue auditor’s remuneration £8,000.

(c) Of the plant and machinery, £70,000 is distributive in nature, while £35,000 is for administration.

(d) Depreciate plant and machinery 25 per cent on cost.

(e) Of the motor expenses, 4/5 is for sales and distribution and '/s for administration.

(f) Corporation tax on ordinary profits is estimated at £143,000.
(g) Assume of £25,000 is to be transferred to general reserve.

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Plant and machinery, at cost (see Note (c)) Bank interest receivable 105,000 3,000 Discounts allowed 7,000 Discounts received 6,000 Hire of motor vehicles: Sales and distribution 14,000 Hire of motor vehicles: Administrative 5,000 Licence fees receivable 13,000 General distribution expenses 26,000 General administrative expenses 19,000 Wages and salaries: Sales and distribution 177,000 Administrative 98,000 Directors' remuneration 41,000 Motor expenses (see Note (e)) 11,000 Ordinary dividend paid Stock 31 March 2003 Sales Purchases Returns outwards 80,000 208,000 1,450,000 700,000 22,000 Returns inwards 29,000 Profit and loss account as at 31 March 2003 88,000