Developing Ltd has an authorised capital of 50,000, 10% preference shares of £1 each and 200,000 ordinary shares of 50p each. After preparation of the income statement for 2013, the following balances remained in the ledger:

The directors recommend: (i) that £10,000 be transferred to general reserve, (ii) payment of the preference dividend, (iii) an ordinary dividend of 15%. Required: Prepare a statement of changes in equity for 2013 and a statement of financial position as at 31 December 2013.

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Share capital: fully paid-up: Preference Ordinary Loan notes Share premium account General reserve Retained profits 2012 Net profit for 2013 Non-current assets Current assets Accounts payable 000 30 80 20 4 7 3 27 140 50 19