a. Explain the difference between the following:

i. Called-up share capital and paid-up share capital
ii. Preference shares and ordinary shares
iii. Ordinary share dividend paid relating to the current financial year and ordinary share dividend proposed relating to the current year.

Silsford Ltd provided the following information:
                                                                                                               $
6% redeemable preference shares of $1 each ....................   50,000
Ordinary shares of $1 each ..................................................     80,000
Retained earnings .................................................................      14,300

During the financial year ended 31 December 20–9 an interim dividend of $2,400 was paid on the ordinary shares.

The profit for the year ended 31 December 20–9 before preference share dividend was $33,000.

On 31 December 20–9 it was decided to:

• Pay the dividend due on the redeemable preference shares
• Pay a final dividend of 5% on the ordinary shares
• Transfer $5,000 to general reserve.

b. Calculate:

i. The profit for the year after preference share dividend
ii. The retained earnings at 31 December 20–9.