The following trial balance was obtained from the books of Florists Ltd at 31 December:

£1 debentures Freehold buildings at cost 80,000 Purchases 91,000 Sales Debtors and creditors 8,900 Rent receivable General salaries 18,000 Rates and insurance 500 Motor expenses 1,000 Directors' salaries 19,000 General expenses 2,500 Motor vans at cost 5,200 Provision for depreciation on vans at 1 January Stock at 1 January 1,200 Bank and cash 5,400 Debenture interest paid (to 30 June) 450 Bad debts 600 Profit and loss account balance at 1 January £233,750 The following information was also available:

(a) Stock at 31 December was £1,400.

(b) General salaries unpaid at the end of the year were £200.

(c) Rent receivable due at 31 December was £150.

(d) Rates paid in advance at the year end were £50.
cr 30,000 15,000 165,000 7,400 450 3,000 12,900 £233,750

(e) Debenture interest for the six months to 31 December was due.

(f) Depreciation is to be charged on the motor vans at the rate of 25%
per annum on cost.
(g) The directors proposed to pay a 1 0% dividend on the ordinary shares and transfer £5,000 to a general reserve. LO.1