Red Devils Ltd has the following extracts from its accounts.

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 lOp 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 2005.

(b) The balance sheet as at 30 November 2005.

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Red Devils Ltd Trial Balance as at 30 November 2005 Gross profit for year 7% Debentures 150,000 200,000 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 2004 9,000 General reserve as at 1 December 2004 11,000 Stock as at 30 November 2005 105,000 837,200 837,200