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 (1 st 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 (1 st Jan 2019) 90,000 Accumulated depreciation Fixtures (1 st Jan 2019) 150,000 Retained profits (1 st Jan 2019) 56,460 Purchases 657,840 Sales 1,200,000 Stock (1 st Jan 2019) 213,720 General expenses 192,420 2,552,700 2,552,700 Additional information 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 Insurance (in general expenses) includes an invoice for the year to 30th June 2020 amounting to 16,000 An invoice of 1,050 for utilities for the quarter period to 31st December needs to be included in general expenses Depreciation is to be provided as follows Buildings 10 on a straight line basis Fixtures and fittings 20 on reducing balance basis The directors wish to make the following adjustments to debtors Write off a further debt of 1,550 Make a specific provision of 25 against a debtor who owes 2,500 Make a 10 general provision on remaining debtors The preference shares were issued on 1st July 2019 The corporation tax for the year has been estimated at 55,000 which is payable on 1st October 2020 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

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Posted on Dec 02, 2020

The following balances have been extracted from the books of Printers Ltd as at 31 December 2019. DR CR 1 ordinary shares 300,000

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 (1^st 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 (1^st Jan 2019)		90,000
Accumulated depreciation: Fixtures (1^st Jan 2019)		150,000
Retained profits (1^st Jan 2019)		56,460
Purchases	657,840
Sales		1,200,000
Stock (1^st Jan 2019)	213,720
General expenses	192,420
	2,552,700	2,552,700

Additional information

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.
Insurance (in general expenses) includes an invoice for the year to 30th June 2020 amounting to £16,000.
An invoice of £1,050 for utilities for the quarter period to 31st December needs to be included in general expenses.
Depreciation is to be provided as follows:
- Buildings: 10% on a straight line basis.
- Fixtures and fittings: 20% on reducing balance basis.
The directors wish to make the following adjustments to debtors:
- Write off a further debt of £1,550.
- Make a specific provision of 25% against a debtor who owes £2,500.
- Make a 10% general provision on remaining debtors.
The preference shares were issued on 1st July 2019.
The corporation tax for the year has been estimated at £55,000 which is payable on 1st October 2020.
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.”