11.2 The following is the trial balance of Anne Smith Ltd at 31 December 20X3:

£

£

Share capital 1,350,000 Share premium account 428,000 Loan capital 180,000 Freehold land and buildings 850,000 Leasehold land and buildings 440,000 Plant and equipment 2,940,000 Accumulated depreciation:

Freehold land and buildings 160,000 Leasehold land and buildings 320,000 Plant and equipment 1,108,000 Stocks at cost 483,000 Debtors and prepaid expenses (trade debtors £220,000)

224,000 Cash 1,000 Creditors and accrued expenses 389,400 Bank overdraft 7,600 Sales 3,960,000 Cost of goods sold 2,420,000 Other expenses 564,000 Dividends paid 12,000 Interest payable 9,000 Directors’ remuneration 500,000 Profit and loss account 540,000

£8,443,000

£8,443,000 Notes:

1. The issued share capital is made up of 1,350,000 ordinary shares of £1 each; the autho¬ rised share capital is 2,000,000 ordinary shares of £1 each.

2. The loan capital is made up of £180,000 10% secured debenture stock, repayable 20X6/X8.

3. No adjustment has been made for interest for the half-year to 31 December 20X3 not yet paid.

4. Provide for an audit fee of £10,000.

5. Provide for depreciation for the year as follows:

£

Freehold land and buildings 20,000 Leasehold land and buildings 40,000 Plant and equipment 280,000

£340,000 6. Create a provision for doubtful debts of 5 per cent of trade debtors.

7. The directors recommend a final dividend of 2p per share.

8. Ignore taxation.

Required:

Balance sheet as at 31 December 20X3 and profit and loss account for the year ended 31 December 20X3.