During the year ended 31 December 19-8 the Clarke Welding Company Ltd made a net profit of £50,000. The directors propose to pay the preference share dividend and a 10% dividend on the ordinary shares. The fixed assets at 31 December were valued at £150,000, the current assets £90,000 and current liabilities £40,000.

Prepare the company's profit and loss appropriation account for the year ended 31 December 19-8 and the balance sheet at that date. LO.1