GWR Ltd started in business on 1 January 20X6. Its issued share capital was 100,000 ordinary shares of £1 each and 50,000 10 per cent preference shares of £1 each. The following information is available:

e Its net profits for the first two years of business were: 20X6 £42,005; 20X7 £34,831.

e Preference dividends were paid for each of these years, whilst ordinary dividends were proposed as 20X6 12 per cent and 20X7 9 per cent.

e Corporation tax, based on the profits of these two years, was: 20X6 £13,480; 20X7 £11,114.

e Transfers to general reserve took place as: 20X6 £6,000; 20X7 £4,000.

Draw up profit and loss appropriation accounts for each of the years ended 31 December 20X6 and 20X7.