The following is the trial balance of Tully Ltd as on 31 December 2020: Share capital issued: ordinary shares 20p Accounts receivable and accounts payable Inventory 31 December 2019 Bank Premises at cost Machinery at cost Motor vehicles at cost Accumulated depreciation at 31.12.2019: Premises Machinery Motor vehicles Sales Purchases Motor expenses Repairs to machinery Sundry expenses Wages and salaries Directors' remuneration Retained profits as at 31.12.2019 General reserve Dr (1) Authorised share capital: 500,000 in ordinary shares of 20p. (ii) Inventory at 31 December 2020 102,400. (iii) Motor expenses owing 280. 169,600 81,300 17,900 265,000 109,100 34,700 623,800 4,300 3,600 2,900 241,500 82,600 Cr 375,000 74,900 60,000 41,400 18,200 975,600 31,200 60,000 1,636,300 1,636,300 Given the following information, you are to draw up an income statement for the year ending 31 December 2020, and a balance sheet as at that date: (iv) Ordinary dividend proposed of 5 per cent. (v) Transfer 7,500 to general reserve. (vi) Provide for depreciation: motor vehicles and machinery 20% on cost; premises 5% on cost.