The following is the trial balance of Tully Ltd as on 31 December 2017:

Given the following information, you are to draw up a statement of profit or loss for the year ending 31 December 2017, and a statement of financial position as at that date:
(1) Authorized share capital: £500,000 in ordinary shares of 20p.
(2) Inventory at 31 December 2017 £102,400.
(3) Motor expenses owing £280.
(4) Ordinary dividend proposed of 5 per cent.
(5) Transfer £7,500 to general reserve.
(6) Provide for depreciation: motor vehicles and machinery 20% on cost; premises 5% on cost.

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Dr Cr Share capital issued: ordinary shares 20p 375,000 Accounts receivable and accounts payable 169,600 74,900 Inventory 31 December 2016 81,300 Bank 17,900 Premises at cost 265,000 Machinery at cost 109,100 Motor vehicles at cost 34,700 Depreciation provisions at 31.12.2016: Premises 60,000 Machinery 41,400 Motor vehicles 18,200 Sales 975,600 Purchases 623,800 Motor expenses 4,300 Repairs to machinery 3,600 Sundry expenses 2,900 Wages and salaries 241,500 Directors' remuneration 82,600 Retained profits as at 31.12.2016 31,200 General reserve 60,000 1,636,300