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2.         You are given the following extract of the trial balance of Murray Ltd for the year ended 31 December 20×1:

DR ($)

CR ($)

Gross profit

92,000

Audit fees

25,000

Advertising

18,000

Directors’ fees

15,000

Interest expense

4,000

Interim dividend

9,000

Income tax expense

6,000

Mortgage loan

50,000

Cash at bank

12,000

Issued and paid-up capital:

300,000 ordinary shares

300,000

Retained profits (at 1 January 20×1)

36,000

Required:

(a)        Calculate net profit after tax for the year ended 31 December 20×1.

(b)        Prepare a Statement of Changes in Equity for the year ended 31 December 20×1.