Self-test Trial balance of Sunnie Ltd as at 30 June 2009 Telephone and postages 12,032 Cash at bank 19,870 Creditors 236,788 12% debentures 200,000 Debtors 452,310 Directors’ salaries 165,000 Electricity and gas 26,780 Insurance and rates 12,114 Loose tools 29,760 Interest received 8,135 Plant and machinery:

At cost 246,880 Accumulated depreciation at 1 July 2008 134,400 Office salaries and commissions 12,322 Ordinary share capital 240,000 Interim dividend 6,000 Profit and loss account at 1 July 2008 187,600 Provision for doubtful debts 11,220 Purchases 1,672,230 Rent 86,200 Commission received 11,330 Sales 2,133,245 Stock at 1 July 2008 341,570 Delivery vehicles:

At cost 113,087 Accumulated depreciation at 1 July 2008 67,807 Bank charges 2,314 Discount received 2,483 Discount allowed 10,874 Goods returned by customers 23,665 3,233,008 3,233,008 Additional information:

(i) Stock at 30 June 2009, valued at cost, amounted to £443,100.

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

(iii) Interest is to be paid to the debenture holders for the year.

(iv) Depreciation on delivery vehicles is at 25 per cent on a straight line basis.

(v) Loose tools are revalued annually. At 30 June 2009 the value was £26,000.

(vi) The provision for bad debts is to be made equal to £22,615 as at 30 June 2009.

(vii) Provision is to be made for machine repairs of £11,300.

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.