LMS Ltd has an authorised capital of £200,000, consisting of 160,000 ordinary shares of £1 each and 40,000 8 per cent preference shares of £1 each. Of these, 120,000 ordinary shares and all the preference shares had been issued when the business first started trading. The following information is available:

e The business has a financial year end of 31 December. The first three years of business resulted in net profit as follows: 20X7 £27,929; 20X8 £32,440; 20X9 £36,891.

e Dividends were paid each year on the preference shares. Dividends on the ordinary shares were proposed as follows: 20X7 8 per cent; 20X8 10 per cent; 20X9 11 per cent.

e Corporation tax, based on the profits of each year, was: 20X7 £8,331; 20X8 £10,446; 20X9

£12,001.

e Transfers to reserves were made as: general reserve 20X7 £3,000, 20X8 £4,000, and foreign exchange reserve 20X9 £2,000.

You are to show the profit and loss appropriation accounts for each of the years 20X7, 20X8 and 20X9.