|SECTION A |

Answer BOTH Questions in this Section.
For each question, answer ALL parts.

Question 1

The following is the trial balance of Fido plc as at 30 April 2011:

|Trial Balance of Fido Ltd at 30 April 2011 |
| |Debit |Credit |
| |£ |£ |
|Issued share capital: | | |
|100,000 ordinary shares of £1 each | |100,000 |
|7% redeemable preference shares (50p each) | |25,000 |
|Purchases |49,700 | |
|Retained earnings | |2,580 |
|Freehold land (cost of acquisition) |140,000 | |
|Advertising |4,650 | |
|Fixtures (cost of acquisition) |15,000 | |
|Fixtures (accumulated depreciation) | |9,000 |
|Motor vehicles (cost of acquisition) |28,000 | |
|Motor vehicles (accumulated depreciation) | |14,000 |
|Directors' salaries |22,000 | |
|Inventory at 1 May 2010