Question
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
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
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