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Mower Ltd started in business on 1 April 2015. Its issued share capital was 400,000 ordinary shares of £1 each and 100,000 6 per cent preference shares of £1 each. The following information is available;
• Its net profits for the first two years of business were: 2015/16 £200,000; 2016/17 £180,000.
• Preference dividends were paid for each of these years, whilst ordinary dividends were proposed as 2015/16 5 per cent and 2016/17 4 per cent.
• Transfers to general reserve took place: 2015/16 £40,000; 2016/17 £20,000.
Draw up a statement of changes in equity for each of the years ending 31 March 2016 and 2017.
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