OmegaTech Ltd has a trading profit for the year ended 31 December 2023, before dealing with the following items, of $80,000. You are to complete the profit and loss account and appropriation account.
1.The standard rate of income tax is 25%.
2.OmegaTech Ltd had $50,000 of 8% debentures. It sent cheques for debenture interest for the year less income tax, on 31 December 2023.
3.OmegaTech Ltd had bought $20,000 of 10% 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.OmegaTech Ltd had bought 15,000 ordinary shares of $1 each in BetaTech Ltd. BetaTech Ltd paid a dividend to OmegaTech Ltd of 18% on 30 November 2023. BetaTech Ltd is a 'related company'.
6.OmegaTech Ltd had a liability for corporation tax, based on profits for 2023, of $38,000.
7.OmegaTech Ltd proposed a dividend of 28% on its 100,000 ordinary shares of $1 each, out of the profits for 2023.
8.Transfer $6,000 to general reserve.
9.Unappropriated profits brought forward from last year amounted to $11,000.
Requirement: Complete the profit and loss account and appropriation account for OmegaTech Ltd and prepare a statement of changes in equity.