Question 1 [20 POINTS] N5J Ltd has an authorized capital of 60,000, 10% preference shares of GHS 1 each and 200,000 ordinary shares of 50p each. After preparation of the prot and loss account for 2017, the following balances remained in the ledger:

Share capital: fully paid-up: GHS

Preference 40000

Ordinary 90000

Debentures 20000

Share premium account 4000

General reserve 7000

Unappropriated prot 2016 5000

Net prot for 2017 27000

Fixed assets 150000

Current assets 60000

Creditors 17000

The directors recommend:

(i) that GHS10,000 be transferred to general reserve,

(ii) payment of the preference dividend,

(iii) an ordinary dividend of 20%.

Required: Prepare:

a) the appropriation account for 2017 and

b) a statement of financial position as at 31 December 2017.