Self-test The following is the list of balances of Camden Trading Ltd at 31 December 2010.

Trade creditors 75,000 Trade debtors 100,000 Bank overdraft 30,000 Debenture interest 2,000 Administrative expenses 47,000 Selling and distribution expenses 10,000 5 per cent debentures 60,000 Land and buildings at cost 200,000 Fixtures and fittings at cost 150,000 Accumulated depreciation at 1 January 2010 30,000 Motor vehicles at cost 200,000 Accumulated depreciation at 1 January 2010 Motor vehicles 60,000 Stock at 1 January 2010 125,000 Purchases 185,000 Sales 375,000 Issued share capital 160,000 Revaluation reserve 35,000 Provision for doubtful debts at 1 January 2010 7,000 Profit and loss account at 1 January 2010 187,000 Additional information:

(i) Stock at 31 December 2010 is valued at £175,000.

(ii) £12,000 paid for administrative expenses belongs to the year to 31 December 2011.

(iii) Depreciation is to be charged as follows:

(a) Fixtures and fittings: 20 per cent straight line.

(b) Motor vehicles: 30 per cent reducing balance.

(iv) Provision for doubtful debts should be increased and made equal to 10 per cent of outstanding debtors.

(v) Provide £15,000 for consultants’ fees.

(vi) Audit fees of £12,000 are to be allowed for in the accounts.

Camden Trading Ltd was formed with an authorised share capital of 200,000 £1 ordinary shares.

Prepare the financial statements for the year to 31 December 2010.