You are required to prepare the profit and loss account for the year ended 31.3.X6 and the balance sheet as at that date for internal purposes for the following company:

You are also given the following information:
► Stock 31.3.X6 £23,483.
► Depreciation of fixed assets is to be provided at the rate of 10% per annum on cost.
► The provision for doubtful debts is to be at 5% of debtors.
► £1,200 of debenture interest and £1,437 of general expenses are to be accrued.
► £925 of general expenses have been paid in advance.
► Provision is to be made for taxation on this year’s profits of £9,700.
► Provision is to be made for an ordinary dividend of 10%.
► The directors have decided to increase the general reserve by a further £3,000.

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TRIAL BALANCE OF GERRY LTD AS AT 31.3.X6 Dr Ordinary shares 1 100,000 6% preference shares 1 20,000 8% debentures 30,000 Share premium 9,500 Revaluation reserve 10,000 General reserve 12,000 Retained profit b/f 1.4.X5 976 Fixed assets (cost 210,000) 191,000 Stock 1.4.X5 14,167 Debtors and creditors 11,000 7,500 Provision for doubtful debts 324 Bank 9,731 Purchases and sales 186,000 271,700 Wages and salaries 31,862 General expenses 15,840 Debenture interest 1,200 Preference dividend 1,200 462,000 462,000