The following are the balances of J Williams & Co Ltd on December 31 2006: Dr Cr $ $ Capital: Authorized, Issued and Fully paid up: 200,000 5% Preference Shares $1 each 200,000 100,000 Ordinary Shares $1 each 100,000 General reserve 285,000 Profit and Loss Ac 1/1/2006 90,000 Preference dividends account 11,000 Trade Creditors 48,000 Debtors 140,000 Equipment 150,000 Motor vehicles 70,000 Furniture and Fixtures 21,000 Premises 99,000 Stock in trade 158,000 Investment at cost 56,000 Dividends received from investments 5,000 General expenses 118,000 Director's remuneration 22,000 Cash in hand and at bank 90,000 Gross trading profit 207.000 935.000 935.000 You are required to prepare the Profit and Loss Account year ended Dec 31 2006 and Balance sheet as at that date, taking into account the following: a) Fixed assets, as shown, are valued at cost less depreciation written off b) Auditor's fee of $1000 is in arrears c) The Board of Directors decide to: i) Depreciation $1000 for motor vehicles and Furniture and fixtures to $2000. ii) Make a provision for doubtful debts equal to 5% of Debtors iii)Appropriate a further $18000 to General Reserve. iv) Recommend the payment of a year's dividend on ordinary shares of 10% per share and pay the preference shareholders dividend