ILLUSTRATION 5. On 1st January 2008, Chrisley Ltd. wants to implement its programme of expansion but finds that there is shortage of funds, On 1st January 2007, it had a balance in Bank-$1,80,000. From the following information, prepare a statement for Board of Directors to show how the overdraft of $68,750 as at 31st December 2007 has arisen, Figures as per Balance Sheet as at 31st December each year are as follows: Fixed Assets Stock & Stores Sundry Debtors Bank Balance Trade Creditors Share Capital (in shares of $10each) Bills Receivable Year Year 2006 2007 7,50,000 11,20,000 2,20,000 3.35,000 3,50,000 3,35,000 1,80,000 68,750 2,70,000 3,50,000 2,50,000 3,00,000 87,500 95,000 The profit for the Year ended 31 December 2007 before charging depreciation and Taxation amounted to b $2,40,000. 5,000 whares were issued on 1st January, 2007 at a premium of $5 per share. $ 1,37,500 were paid in March 2007 by way of income tax. Dividends were paid as follows: For 2006( Final) on the capital on 31-12-2006 at 10% less tax at 25% For 2007 (interim) 5% Free of Tax.Assume that it has been declared after the issue of fresh shares.