The trial balance of Payne Peerbrook plc as on 31 December 19X6 is as follows:

(i) Stock of finished goods on 31 December 19X6 \(£ 144,081\).
(ii) Motor expenses and depreciation on motors to be apportioned: Distribution \(3 / 4\), Administrative \(1 / 4\).
(iii) Plant and machinery depreciation to be apportioned: Cost of sales \(1 / 5\), Distribution \(3 / 5\), Administrative \(1 / 5\).
(iv) Depreciate the following fixed assets on cost: Motor vehicles 25 per cent, Plant and machinery 20 per cent.
(v) Accrue corporation tax on profits of the year \(£ 14,150\). This is payable 1 October \(19 \mathrm{X} 7\).
(vi) A preference dividend of \(£ 5,000\) is to be paid and an ordinary dividend of \(£ 10,000\) is to be proposed.
You are to draw up:

(a) a trading and profit and loss account for the year ended 31 December 19X6 for internal use, and

(b) a profit and loss account for publication, also a balance sheet as at 31 December 19 X6.

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Dr Cr R Preference share capital: 1 shares 50,000 Ordinary share capital: 50p shares 60,000 General reserve 45,000 Exchange reserve 13,600 Profit and loss account as on 31 December 19X5 19,343 Stock 31 December 19X5 107,143 Sales 449,110 Returns inwards 11,380 Purchases 218,940 Carriage inwards 2,475 Wages (putting goods into a saleable condition) 3,096 Wages: Warehouse staff 39,722 Wages and salaries: Sales staff 28,161 Wages and salaries: Administrative staff 34,778 Motor expenses (see note ii) 16,400 General distribution expenses 8,061 General administrative expenses Debenture interest Royalties receivable Directors' remuncration Bad debts 7,914 10,000 4,179 18,450 3,050 Discounts allowed 5,164 Discounts received 4,092 Plant and machinery at cost (see note iii) 175,000 Provision for depreciation: Plant and machinery 58,400 Motor vehicles at cost (see note ii) 32,000