WAEC SSCE - Financial Accounting - 2008

Swali 1 Ripoti

Tale LTd. has 100,000 ordinary shares of ₦1 each and 60,000 5% preference shares of ₦1 each. Both were fully paid as shown below,
Profit and loss appropriation b/f10,000Net profit for the year6,000Proposed dividend on ordinary shares4,000Interim dividend6,000Goodwill written off600\begin{array}{c|c} & ₦\\ \text{Profit and loss appropriation b/f} & 10,000\\ \text{Net profit for the year} & 6,000\\ \text{Proposed dividend on ordinary shares} & 4,000\\ \text{Interim dividend} & 6,000\\ \text{Goodwill written off} \\ 600\end{array}
The balance of the profit and loss appropriation account as at the end of the year was