Joytan Ltd has a trading profit, before dealing with any of the undermentioned items, for the year ended 31 December 20X4 of £500,000. Prepare the profit and loss account for the year.

(a) The standard rate of income tax is 25 per cent.

(b) Joytan Ltd has bought £100,000 of 8 per cent debentures in another company. Joytan Ltd receives its interest, less income tax, for the year on 6 November 20X4.

(c) Joytan has issued £300,000 of 10 per cent debentures, and pays interest, less income tax for the year on 22 December 20X4.

(d) No cheque has been paid to the Inland Revenue for income tax.

(e) Joytan Ltd has a liability for corporation tax, based on the year’s profits for 20X4, of £210,000.

(f) Joytan Ltd owns 90,000 ordinary shares of £1 each in Plax Ltd, and receives a cheque for the dividend of 15 per cent in October 20X4. Plax Ltd is neither a subsidiary company nor a related company of Joytan Ltd.

(g) Joytan Ltd proposed a dividend of 9 per cent on its 500,000 ordinary shares of £1 each, payable out of the profits for 20X4.

(h) Transfer £50,000 to general reserve.

(i) Unappropriated profits brought forward from last year amounted to £122,000.