Here is the trial balance of RF Ltd as at 30 June 20X8:

Given the following information as at 30 June 20X8, draw up a set of financial statements for the year to that date:

i) Stock 30 June 20X8 £49,371.

ii) The share capital consisted of 25,000 ordinary shares of £1 each and 25,000 10 per cent preference shares of £1 each. The dividend on the preference shares was proposed to be paid as well as a dividend of 20 per cent on the ordinary shares.
iii) Accrued rent £700; Directors’ remuneration £2,500.
(iv) Debenture interest '/2 year’s interest owing.
(v) Depreciation on cost: Equipment 10 per cent; Motors 20 per cent.
(vi) Transfers to reserves: General reserve £2,000; Fixed assets replacement reserve £1,000.

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Dr Cr Share capital: authorised and issued Stock as at 30 June 20X7 Debtors Creditors 50,000 38,295 26,890 12,310 10% debentures 20,000 Fixed assets replacement reserve 10,000 General reserve 6,000 Profit and loss account as at 30 June 20X7 3,964 Debenture interest 1,000 Equipment at cost 35,000 Motor vehicles at cost 28,500 Bank 3,643 Cash 180 Sales 99,500 Purchases 66,350 Returns inwards 1,150 Carriage inwards 240 Wages and salaries 10,360 Rent, rates and insurance 5,170 Discounts allowed 1,246 Directors' remuneration 2,500 Provision for depreciation at 30 June 20X7: Equipment 8,400 Motors 10,350 220,524 220,524