45.6 Select Ltd is registered with an authorised capital of 300,000 ordinary shares of 1. The fol- lowing trial balance was extracted from the books of the company on 31 March 20x1, after the preparation of the trading account: Dr Cr f f Ordinary share capital, fully paid 200,000 Land and buildings at cost 170,000 Sundry debtors 38,300 Furniture and fittings at cost 80,000 VAT 3,800 Sundry Creditors 25,000 Stock at 31 March 20x0 42,000 Bank 12,000 Trading account: gross profit 98,050 Office salaries and expenses 25,000 Accumulated provision for depreciation on furniture and fittings 32,000 Share premium account 20,000 Advertising and selling expenses 5,000 Bad debts 250 Provision for doubtful debts 600 Profit and loss account 12,000 Directors' fees 11,300 387,650 387,650 Required: Prepare the profit and loss account of the company for the year ending 31 March 20X1, and bal- ance sheet as at that date, after taking into account the following adjustments: (i) The provision for doubtful debtors is to be adjusted to 700. (ii) Depreciation is to be provided in respect of furniture and fittings at 10% per annum on cost. (iii) 25,000 is to be transferred from profit and loss to general reserve. (iv) Provide for a proposed dividend on share capital at 10%. Present the balance sheet in a form which shows the shareholders' equity and the working capital