The following is the trial balance of B.B.C. Ltd as on 31 December 20X7:

Given the following information, you are to draw up a trading and profit and loss account for the year ended 31 December 20X7, and a balance sheet as at that date:
(i) Authorised share capital: £100,000 in ordinary shares of £1.
(ii) Stock at 31 December 20X7 £54,300.
(iii) Motor expenses owing £445.
(iv) Ordinary dividend proposed of 20 per cent. a (v) Transfer £2,000 to general reserve.
(vi) Provide for depreciation of all fixed assets at 20 per cent reducing balance method.
Required:
A trading and profit and loss account for 20X7 and a balance sheet as at 31 December 20X7.

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Dr JE Cr Share capital issued: ordinary shares 1 75,000 Debtors and creditors 28,560 22,472 Stock 31 December 20X6 41,415 Bank 16,255 Machinery at cost 45,000 Motor vehicles at cost 28,000 Depreciation provisions at 31.12.20X6: Machinery 18,000 Motor vehicles 12,600 Sales 97,500 Purchases Motor expenses 51,380 8,144 Repairs to machinery 2,308 Sundry expenses 1,076 Wages and salaries 11,372 Directors' remuneration 6,200 Profit and loss account as at 31.12.20X6 6,138 General reserve 8,000 239,710 239,710