Thai Sikh International School
Name: Subject: Accounting
1. ABC
Ltd was formed some years ago. It raised
funds from the issue of Ordinary shares, Preference shares and debentures.
The
following information was taken from the books of ABC Ltd on 31 May 2011.
$
Profit
for the year (net profit) 44000
Profit
and Loss account balance 1 June 2010
8600
6 % Preference
shares of $ 1 each 140000
Ordinary
shares of $ 1 each 300000
During
the year ended 31 May 2011 the company paid an interim dividend 0f 2 % on the
preference shares.
On 31
May 2011 the directors proposed:
1. A
transfer of $ 6000 to a general reserve.
2 To
pay the reminder of the preference share dividend.
3 To
pay a dividend of 8 % on the ordinary shares.
Required
(a)
Prepare the profit and Loss appropriation account of ABC Ltd for the year ended
31 May 2010.
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