Self-test The following balances were extracted from the books of Kumble plc on 31 October 2008.

Dr Cr £ £
Purchases 820,000 Sales 1,800,000 Stock 1 November 2007 58,000 Discounts 8,300 4,200 Sales returns 4,600 £1 Ordinary shares 700,000 £1 6% Preference shares 300,000 Rent received 50,000 General distribution costs 195,000 General administrative expenses 145,000 Profit and Loss 56,000 Debtors 82,000 Creditors 47,000 Equipment 220,000 Vehicles 440,000 Land and buildings 994,600 Provision for depreciation of equipment 38,000 Provision for depreciation of vehicles 180,000 General reserve 75,000 Share premium 140,000 Bank 64,000 Provision for doubtful debts 3,300 Salaries 250,000 3,337,500 3,337,500 Additional information.
(i) Stock at 31 October 2008 was valued at £53,000.
(ii) General distribution costs owing £4,300.
General administrative expenses prepaid £3,000.
(iii) Salaries are split in the ratio of 3:2 between distribution costs and administrative expenses.
(iv) Rent receivable of £1,200 has been paid in advance.
(v) A cheque for £1,500 from a debtor has not been recorded in the accounts.
(vi) The provision for doubtful debts is to be made up of a specific provision of £800, plus a general provision of 3% on the remainder of debtors.
(vii) Depreciation is to be provided as follows:
● equipment 20% per annum on cost;
● vehicles 25% per annum reducing balance method.
Equipment is split in the ratio of 3:1 between distribution costs and administrative expenses. Vehicles are treated as a distribution cost.
(viii) The directors recommend:
● a transfer to the general reserve of £70,000;
● an ordinary share dividend of 10 pence per share;
● the payment of the preference share dividend.
(ix) Corporation Tax for the year is estimated at £90,000.
Required:

(a) The Profit and Loss Account for the year ended 31 October 2008, together with the Balance Sheet as at that date (in accordance with the minimum requirements for publication)