The following balances have been extracted from the books of Printers Ltd as at 31 December 2019.

	DR	CR
1 ordinary shares		300,000
8% preference shares		300,000
10% debentures		240,000
Share premium account		165,000
Debenture interest paid	12,000
Bad debts written off	10,140
Provision for doubtful debts (1st Jan 2019)		12,240
Cash in hand	9,480
Debtors & Creditors	103,500	39,000
Bank balance	183,600
Land at cost	270,000
Buildings at cost	570,000
Fixtures and fittings at cost	330,000
Accumulated depreciation: Buildings (1st Jan 2019)		90,000
Accumulated depreciation: Fixtures (1st Jan 2019)		150,000
Retained profits (1st Jan 2019)		56,460
Purchases	657,840
Sales		1,200,000
Stock (1st Jan 2019)	213,720
General expenses	192,420
	2,552,700	2,552,700

Additional information

1. Stock at 31st December 2019 cost 180,120. However, stock includes items that originally cost 8,500 and are obsolete and will need to be scrapped.
2. Insurance (in general expenses) includes an invoice for the year to 30th June 2020 amounting to 16,000.
3. An invoice of 1,050 for utilities for the quarter period to 31st December needs to be included in general expenses.
4. Depreciation is to be provided as follows:
   1. Buildings: 10% on a straight line basis.
   2. Fixtures and fittings: 20% on reducing balance basis.
5. The directors wish to make the following adjustments to debtors:
   1. Write off a further debt of 1,550.
   2. Make a specific provision of 25% against a debtor who owes 2,500.
   3. Make a 10% general provision on remaining debtors.
6. The preference shares were issued on 1st July 2019.
7. The corporation tax for the year has been estimated at 55,000 which is payable on 1st October 2020.
8. The directors propose to pay the preference dividend and a 10% ordinary dividend.

Required

Prepare Printers Ltd.s Profit & Loss account for the year ended 31st December 2019 and a Balance Sheet as at that date.

[25 marks]