Red Devils Ltd has the following extracts from its accounts.

Red Devils Ltd Trial Balance as at 30 November 2001 ra oD Gross profit for year 150,000 7% Debentures 200,000 6% Preference share capital (£150,000 authorised) 150,000

£1 Ordinary share capital (£400,000 authorised) 250,000 Share premium account 55,000 Fixed assets 680,900 General expenses 22,100 Directors’ fees 19,200 Debtors 4,700 Bank 5,300 Creditors 12,200 Profit and loss account as at 1 December 2000 9,000 General reserve as at 1 December 2000 11,000 Stock as at 30 November 2001 105,000 837,200 837,200 Notes:

1. An audit fee is to be provided of £7,500.

2. The debenture interest for the year has not been paid.

3. The directors propose the following:

(a) A dividend of 10p per share (10%) on the ordinary shares

(b) To pay the preference dividend

(c) To transfer £3,500 to the general reserve (Note: transfers are recorded in the appropriation account)

4. Corporation tax of £17,440 to be provided on the profit for the year.

Required:

Prepare for internal management purposes:

(a) The profit and loss account and appropriation account for the year ended 30 November 2001.

(b) The balance sheet as at 30 November 2001.