Self-test NuDeal Ltd was formed with an authorised share capital of 2,000,000 ordinary shares of 50p each.

NuDeal Ltd Trial balance at 31 December 2010 Bad debts 2,800 Provision for bad debts 1,000 Profit and loss account 1 January 2010 172,000 Stock at l January 2010 75,200 Land and buildings at cost 723,400 Creditors 98,560 Issued share capital – fully paid 360,000 Equipment at cost 96,000 Debtors 20,000 Sales 796,000 Purchases 320,800 Carriage inwards 2,960 Carriage outwards 34,000 Office expenses 49,600 Advertising 51,760 10 percent debentures 72,000 Debenture interest paid 7,200 Rates 7,040 Cash in hand 1,200 Cash in bank 1,600 Provision for depreciation of equipment 76,000 Salaries and wages 182,000 1,575,560 1,575,560 The following additional information is provided:

(i) Stock at 31 December 2010 is £123,500.

(ii) Salaries accrued: £12,600.

(iii) Rates prepaid: £1,250.

(iv) Provision for bad debts is to be reduced to £740.

(v) Depreciation of 10 per cent p.a. on the cost of equipment must be provided.

(vi) A dividend of 4p per ordinary share is declared.

(vii) Taxation is provided at 20 per cent.

You are required to prepare the final accounts for Nudeal Ltd for the year ended 31 December 2010.