Solution 14.3

 

Profit & Loss Appropriation Account for year ended 31 May 2004

 

Net operating profit

 

   950,000

Interest paid

    35,000

 

Interest due

    15,000

    (50,000)

Net profit before tax

 

   900,000

Corporation tax

 

    (80,000)

Net profit after interest and tax

 

   820,000

Appropriations

 

 

Transfer to reserves

 

    (50,000)

Dividend policy

 

 

Interim ordinary dividend

    60,000

 

Proposed final dividend

   650,000

 

Preference dividend provision

    48,000

   (758,000)

Retained profit current year

 

    12,000

Retained profit b/f

 

   440,000

Retained profit c/f

 

   452,000

 

 

Current Liabilities (extract) as at 31 May 2004                  

 

Debenture interest

15,000

Corporation tax

80,000

Preference share dividend

48,000

Ordinary share dividend

650,000

 

 

Capital and Reserves as at 31 May 2004       

 

Ordinary share capital

3,000,000

Preference share capital

600,000

Retained earnings

452,000

Revaluation reserve

700,000

Fixed assess replacement reserve

150,000

P&L reserve

452,000

General reserve

110,000

 

5,464,000