The following details were extracted from Wakulima Ltd on 31.12.2014

Shs.

100,000 ordinary share capital of shs. 10 each 1,000,000

25,000 8% preference shares of shs. 20 each 500,000

General reserve 70,000

Preliminary expenses 80,000

P/L a/c 1.1.2014 65,000

Net profit for the year ended 2015 450,000

The directors propose to;

a)Provide shs 85,000 for corporation tax

b)Write off a quarter of the preliminary expenses

c)Transfer shs 75,00 to general reserve

d)Pay 10% dividends on ordinary share capital.

Required

a)Prepare the P/L Appropriation Account for the year ended 31.12.2014

b)Balance sheet extract as at 31.12.2014