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Question 3 Retained profits Share premium account Inventory Accounts receivable General reserve Accounts payable Accumulated depreciation: Buildings Motor vehicles Plant & equipment Bank (balancing figure for you to ascertain) Corporation tax payable f 487,400 115,000 81,800 102,000 90,000 97,300 127,000 87,000 117,000 7 49,100 Question 4 36.4 The following balances remained in the ledger of Lungox Ltd after preparation of the income statement for the year ended 31 December 2019: 000 Inventory 138 Accounts receivable 166 Issued ordinary shares of 1 each 80 4% preference shares of 1 each 50 Accounts payable 141 Balance at bank 18 General reserve 40 Retained profits at 1 January 2019 221 Profit for year to 31 December 2019 66 Non-current assets at cost less accumulated 547 depreciation 5% loan notes, repayable 2029 150 Corporation tax payable 35 Share premium 96 During the year the preference dividend for 2018 was paid in full, along with ordinary dividends amounting to 10 pence per share. The directors also wish to transfer 15,000 to general reserve. Required: (a) An extract from the Statement of Changes in Equity for the year ended 31 December 2019, showing the movement in general reserve and retained profits. (b) A balance sheet as at 31 December 2019. 2