The market price of the ordinary shares at 31 December 2020 was Rs 1.60 The dividend yield on ordinary shares was 2.5percent. The creditor for taxation at 31 December 2019 was Rs 25000. Taxation paid in the year ended 31 December 2020 amounted to Rs 22000. The liability for taxation on the profit of the year ended 31 December 2020 is Rs 31000 and is carried forward on the Taxation account. The retained profit for the year ended 31 December 2020 was Rs 60000. The debentures were issued in 2016. The preference shares were issued at par.

The summarized Balance Sheet at 31 December 2020 of Iqra Ltd was as: Fixed assets 2550000, Net current assets 950000, 6% debentures 2019/2020 150000, Ordinary shares of Rs 12500000, 10% redeemable preference shares of Rs1300000, Share Premium account 200000 Profit and Loss Account 350000.

REQUIRED Prepare Iqra Ltd's Profit and Loss Account for the year ended 31 December 2020 in as much detail as possible. The Profit and Loss Account should commence with the operating profit.