Donald Ltd provides the following information after the first year of trading: Additional information The directors wish

Question:

Donald Ltd provides the following information after the first year of trading:


Additional information

The directors wish to transfer £40,000 to general reserve and recommend a final dividend of £50,000. They wish to provide for corporation tax due £65,000.


Required

a) Prepare an extract from the income statement for the year ended 31 August 20*8
b) Prepare a balance sheet at 31 August 20*8.

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