AlphaTech Ltd has a trading profit for the year ended 31 December 2023, before dealing with the following items, of $50,000. You are to complete the profit and loss account and appropriation account.
1.The standard rate of income tax is 27%.
2.AlphaTech Ltd had $40,000 of 8% debentures. It sent cheques for debenture interest for the year less income tax, on 31 December 2023.
3.AlphaTech Ltd had bought $10,000 of 9% debentures in another company. It received a year's interest, less income tax, on 30 December 2023.
4.No cheque has been paid to the Inland Revenue for income tax.
5.AlphaTech Ltd had bought 15,000 ordinary shares of $1 each in BetaTech Ltd. BetaTech Ltd paid a dividend to AlphaTech Ltd of 20% on 30 November 2023. BetaTech Ltd is a 'related company'.
6.AlphaTech Ltd had a liability for corporation tax, based on profits for 2023, of $25,000.
7.AlphaTech Ltd proposed a dividend of 30% on its 70,000 ordinary shares of $1 each, out of the profits for 2023.
8.Transfer $5,000 to general reserve.
9.Unappropriated profits brought forward from last year amounted to $9,000.
Requirement: Complete the profit and loss account and appropriation account for AlphaTech Ltd and prepare the shareholders' equity section of the balance sheet.