Bainbridge plc started in business on 1 January 2026. Its issued share capital was 120,000 ordinary shares of £1 each and 30,000 

6% preference shares of £1 each. The following information is available:

Net profits for the first two years of business were as follows:

2026 £58,911 

2027 £72,344 

Corporation tax was as follows: 2026 £15,890; 2027 £26,750 Transfers were made to the general reserve: 2026 £5,000; 2027 £10,000 Preference dividends were always paid, whereas the ordinary dividends paid were 5% in 2026 and 7% in 2025.

Produce a balance sheet extract for the two years of trading showing the equity section.