PROBLEM13 For the year ended 31st March 2010 the profit of Krebs Ltd. before charging depreciation on fixed assets and Managerial commission amounted to 3,00,000. Depreciation for the year amounted to 60,000 and a commission of 10 per cent of the profits (before charging such commission) was payable to the Manager. The paid-up capital of the company consisted of 10,00.000 divided into 5,000 6 per cent Preference Shares of 100 each and 50,000 Equity Shares of 7 10 each. Interim Dividend @ 50 P. per share was paid during the year. There was credit balance of 7 35,000 in the Profit and Loss Account brought from the previous year. Following appropriations were proposed by the Board of Directors and subsequently passed at the Annual General Meeting of the company : (a) To pay the year's dividend on Preference Shares. (b) To pay a final dividend on Equity Shares at 50 P. per share to make a total dividend of? 1 per share for the year. (c) To provide for taxation @ 50 per cent on the net profit. (d) To transfer 25,000 to the General Reserve. (e) To carry forward the balance. You are required to show the Profit and Loss Appropriation Account. a