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 had been issued and all the preference shares when the business first started trading.

The business has a financial year end of 31 December. The first three years of business resulted in net profit as follows: 19X7 £27,929; 19X8 £32,440; 19X9 £36,891.

Dividends were paid each year on the preference shares. Dividends on the ordinary shares were proposed as follows: 19X7 8 per cent; 19X8 10 per cent; 19X9 11 per cent.

Corporation tax, based on the profits of each year, was: 19X7 £8,331; 19X8 £10,446; 19X9

£12,001.

Transfers to reserves were made as: General reserve 19X7 £3,000, 19X8 £4,000, and Foreign exchange reserve 19X9 £2,000.

You are to show the profit and loss appropriation accounts for each of the years 19X7, 19X8 and 19X9.