10 ILLUSTRATION 9 (Preparation of Surplus/(Deficit) in the Statement of Profit and Loss or Profit and Loss Appropriation Account) Net profit for the year 50,00,000 Balance of Statement of Profit and Loss of previous year 20,00,000 14% Preference share capital 10.00.000 Equity share capital 9,00,000 The board of directors has proposed 15% dividend on equity shares. Assume corporate dividend tax rate 15% surcharge 5% and eduction cess 3% Transfer rs. 80,388 to debenture Sinking fund. Prepare notes to accounts surplus/(Deficit) in the statement of Profit and Loss or prepare profit and loss appropriation account