The following balances remained in the ledger of OK Ltd after preparation of the income statement for the year ending 31 March 2012

The directors propose: (i) a transfer to general reserve of £10,000; (ii) payment of the preference dividend and a 12% dividend on the ordinary shares (Dividends relating to 2011 were paid in March 2012 at the same rates.). Required:

(a) Prepare a statement of changes in equity for the year ended 31 March 2012.

(b) Prepare a statement of financial position as at 31 March 2012, showing clearly the ordinary shareholders’ equity, the total shareholders’ funds and the working capital.

Transcribed Image Text:

Inventory Accounts receivable Ordinary share capital 8% preference share capital Accounts payable Balance at bank General reserve Retained profits 2011 Net profit for the year to 31 March 2012 Non-current assets at cost, less depreciation 000 52 24 100 50 NBARFAND 37 14 30 27 29 167