11.4 The trial balance of van der Pant Ltd, a trading company, as at 31 December 20X0 was as follows:

£

£

Sales 4,500,000 Purchases 3,000,000 General expenses 840,000 Debenture interest 25,200 Debentures, 7%

360,000 Ordinary share capital 1,200,000 Share premium 30,000 8% preference shares 300,000 Fixtures and fittings at cost 480,000 Motor vehicles at cost 210,000 Profit and loss account 55,800 Creditors, trade 517,200 Debtors, trade 1,500,000 Provisions for depreciation:
Fixtures and fittings 60,000 Motor vehicles 30,000 Bank 31,800 Stock as at 1 January 20X0 900,000 Directors’ salaries 123,000 Directors’ current accounts 57,000 £7,110,000 £7,110,000 Notes:
1. The stock on hand at 31 December 20X0 was £1,200,000.
2. The preference dividend for 20X0 will be paid on 10 January 20X1.'
3. Corporation tax based on the year’s profit will be £240,000 and will be paid on 1 October 20X1.
4. Directors’ fees of £87,000 are to be provided in respect of the year.
5. A dividend is to be proposed of 25 per cent on the ordinary shares.
6. Depreciation is to be provided for the year: fixtures and fittings £96,000 motor vehicles £42,000 Prepare the profit and loss account for the year ended 31 December 20X0 and the balance sheet as at that date.