The bookkeeper of Investor (Pty) Ltd, Ms Inexperienced, prepared a post-closing trial balance as at 31 October 20x5. She, however, did not take into account the additional information.

Additional information:

1. On 1 March 20x5, the directors of the company passed these resolutions:

– Preliminary expenses and share issue expenses should no longer appear in the books.

– The preference shares are to be redeemed on 1 May 20x5 at a premium of 10%. The dividend for the current year is payable to the date of redemption.

2. The non-distributable reserves can only be distributed to shareholders upon liquidation.

You are required to:

Show the equity and liabilities section of the statement of financial position as at 31 October 20x5, after taking the information above into account.

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Investor (Pty) Ltd POST-CLOSING TRIAL BALANCE AS AT 31 OCTOBER 20x5 Debit Ordinary share capital 50 000 redeemable preference shares @ R1 each (fixed annual dividend of 12c/share) Details Non-distributable reserve (profit on sale of investment) Asset replacement reserve Retained earnings 16% long-term loan Preference shareholders Investments: Listed Unlisted Fixed deposits Bank Preliminary expenses Share issue expense (ordinary shares) Current tax payable Fol. B1 B2 B3 B4 B5 B6 B7 B8 B9 B10 B11 B12 B13 B14 58 000 00 215 225 00 145 875 00 175 000 00 91 700 00 5 600 00 2 650 00 694 050 00 Credit 300 000 00 50 000 00 12 750 00 40 000 00 228 450 00 35 000 00 27 850 00 694 050 00