Developing Ltd has an authorized capital of 100,000, 8% preference shares of £1 each and 400,000 ordinary shares of 50p each. After preparation of the statement of profit or loss for 2017, the following balances remained in the ledger:

The directors recommend:
(1) that £18,000 be transferred to general reserve, (2) payment of the preference dividend, (3) an ordinary dividend of 12%.

Required:
Prepare a statement of changes in equity for 2017 and a statement of financial position as at 31 December 2017.

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Share capital: fully paid-up: Preference Ordinary Loan notes Share premium account General reserve Retained profits 2016 Net profit for 2017 Non-current assets Current assets Accounts payable 000 140 10 70 30 6 12 9 45 228 110 26