Self-test Allie Ltd Trial balance at 30 June 2009 Advertising 30,130 Bank 19,900 Creditors 69,214 Debentures 10% 70,000 Debtors 301,440 Directors’ remuneration 55,000 Electricity 22,134 Insurance 17,890 Investments – fixed asset 28,500 Investment income 4,240 Machinery:

At cost 410,320 Accumulated depreciation at 1 July 2008 168,900 Office expenses 43,210 Ordinary share capital 220,000 Dividend 4,400 Profit and loss account at 1 July 2008 121,300 Provision for bad debts 8,500 Purchases 1,203,980 Rent and rates 67,210 Commission received 5,700 Sales 2,104,090 Stock at 1 July 2008 126,900 Vehicles:

At cost 83,240 Accumulated depreciation at 1 July 2008 51,100 Wages and salaries 321,900 Discount received 12,340 Discount allowed 51,430 Goods returned by customers 47,800 2,835,384 2,835,384 Additional information:

(i) Stock at 30 June 2009, valued at cost, amounted to £195,000.

(ii) Depreciation is to be provided on machinery and vehicles at a rate of 20 per cent and 25 per cent respectively, using the reducing balance method.

(iii) The provision for bad debts is to be made equal to 5 per cent of outstanding debtors as at 30 June 2009.

(iv) Provision is to be made for machine repairs of £8,000.

(v) Provision is to be made for interest to debenture holders.

You are required to prepare a profit and loss account for the year ended 30 June 2009, and a balance sheet as at that date.