BG Ltd has a trading profit for the year ended 31 December 19X7, before dealing with the following items, of £50,000. You are to complete the profit and loss account and appropriation account.

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(a) The standard rate of income tax is taken as being 30 per cent. (b) BG Ltd had 40,000 of 9 per cent debentures. It sent them cheques for debenture interest for the year less income tax, on 31 December 19X7. (c) BG Ltd had bought 10,000 of 11 per cent debentures in another company. It received a year's interest, less income tax, on 30 December 19X7. (d) No cheque has been paid to the Inland Revenue for income tax. (e) BG Ltd had bought 15,000 ordinary shares of 1 each in MM Ltd. MM Ltd paid a dividend to BG Ltd of 20 per cent on 30 November 19X7. MM Ltd is a 'related company'. (f) BG Ltd had a liability for corporation tax, based on profits for 19X7, of 24,000. (g) BG proposed a dividend of 30 per cent on its 70,000 ordinary shares of 1 each, out of the profits for 19X7. (b) Transfer 5,000 to general reserve. (i) Unappropriated profits brought forward from last year amounted to 9,870.