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| XYZ Ltd has an Ordinary Share Capital of 1,000,000 ordinary share of $1 each and 100,000 6% preference shares of $1 each. The net profits for the first three years of business ended 31 Dec were:
20X1 $200,000
20X2 $250,000
20X3 $350,000
Transfers to reserves were as follows: 20X1 Transfer to General Reserve $20,000
20X2 Transfer to Fixed Assets Replacement Reserve $40,000
20X3 Transfer to General Reserve $60,000
20X3 Transfer to Fixed Assets Replacement Reserve $40,000 The directors have also recommended that:
(a) dividend on preference share be paid
(b) the dividend rate for ordinary shares are as follow:
· 20X1 – 10%
· 20X2 – 10% · 20X3 – 10%
Show The Profit & Loss Appropriation Accounts for the three years |
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| Answer to above Question: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Profit & Loss Appropriation Account For The Year Ended 31 /12/X1
Profit & Loss Appropriation Account For The Year Ended 31 /12/X2
Profit & Loss Appropriation Account For The Year Ended 31 /12/X3
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