Find and show the profit and loss appropriation account

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The accounts of midland Industries ltd., showed an amount of Rs 100,000 to the credit of Profit and loss account on 31st December 2019 out of which directors decided to place Rs 20,000 to General Reserve fund, and Rs 5,000 to debentures redemption fund.

At the annual general meeting, it was decided to place Rs 10,000 to a War Reserve fund (to provide for contingencies) and to pay a bonus of 2 ½ per cent of the profits to the directors as additional remuneration. It was also decided to pay a dividend at the rate of 10 per cent on Equity share capital of Rs 300,000. The balance of profit and loss account to be carried forward to next year.

Problem 1: Find and show the profit and loss appropriation account of the company.

Reference no: EM132974528

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