From the following balance of Danielle plc you are to draw up (i) a trading and profit and loss account for the year ended 31 December 19X6, for internal use, and (ii) a profit and loss account for publication:

(a) Stock at 31 December \(19 \times 6 £ 210,840\).

(b) Accrue auditor's remuneration \(£ 3,000\).

(c) Of the Plant and machinery, \(£ 150,000\) is distributive in nature, whilst \(£ 125,000\) is for administration.

(d) Depreciate plant and machinery 20 per cent on cost.

(e) Of the Motor expenses \(2 / 3\) is for Sales and distribution and \(1 / 3\) for Administration.

(f) Corporation tax on ordinary profits is estimated at \(£ 28,350\).
(g) Proposed ordinary dividend is \(£ 50,000\).

(b) A sum of \(£ 15,000\) is to be transferred to general reserve,

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Plant and machinery, at cost (see note (c)) Bank interest receivable 275,000 1,850 Discounts allowed 5,040 Discounts received 3,890 Hire of motor vehicles: Sales and distribution 9,470 Hire of motor vehicles: Administrative 5,710 Licence fees receivable 5,100 General distribution expenses 11,300 General administrative expenses 15,800 Wages and salaries: Sales and distribution 134,690 Administrative 89,720 Directors' remuneration Motor expenses (see note (e)) 42,000 18,600 Stock 31 December 19X5 220,500 Sales Purchases 880,000 405,600 Returns outwards 15,800 Returns inwards 19,550 Profit and loss account as at 31 December 19X5 29,370