BetaIndustries Ltd has a trading profit for the year ended 31 December 2023, before dealing with the following items, of $60,000. You are to complete the profit and loss account and appropriation account.
1.The standard rate of income tax is 27%.
2.BetaIndustries Ltd had $40,000 of 8% debentures. It sent cheques for debenture interest for the year less income tax, on 31 December 2023.
3.BetaIndustries Ltd had bought $12,000 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.BetaIndustries Ltd had bought 18,000 ordinary shares of $1 each in GammaIndustries Ltd. GammaIndustries Ltd paid a dividend to BetaIndustries Ltd of 20% on 30 November 2023. GammaIndustries Ltd is a 'related company'.
6.BetaIndustries Ltd had a liability for corporation tax, based on profits for 2023, of $26,000.
7.BetaIndustries Ltd proposed a dividend of 24% 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 $10,500.
Requirement: Complete the profit and loss account and appropriation account for BetaIndustries Ltd and prepare a comprehensive statement of equity.