(a)[12]
Prepare the income statement covering the year ended 30 September 2020.
(b)[7]
Prepare the statement of financial position as at 30 September 2020.
(c)[2]
State two ways in which ordinary shares and preference shares differ.
(d(i))[1]
Define the term ‘capital reserve’.
(d(ii))[1]
State one purpose of a capital reserve.
(e)[7]
Advise the directors which option they ought to choose. Justify your answer.