The following is the Balance Sheet of XYZ Ltd. as on 31st December, 2015:

Net profits (before taxation) for the past three years: Year ended 31st December:
2013 ---- ₹ 69,000;
2014 ---- ₹ 91,500;
2015 ---- ₹ 98,500.
Freehold premises were valued early in 2015 at ₹ 80,000. Average yield in this type of business is 15% on capital employed. You are required to find out the fair value of each share on the basis of above mentioned facts, assuming the weights for 2013, 2014 and 2015 were agreed as 1, 2 and 3 respectively.

Transcribed Image Text:

I. EQUITY AND LIABILITIES (1) Shareholders' Funds : (a) Share Capital Balance Sheet of XYZ Ltd. as at 31st December, 2015 Particulars (1) (b) Reserves and Surplus - General Reserve Capital Reserve 15,000 Equity Shares of 10 each fully paid TOTAL II. ASSETS (1) Non-current Assets: (a) Fixed Assets (2) Share Application Money Pending Allotment: (3) Non-current Liabilities: (4) Current Liabilities: (a) Trade Payables - Sundry Creditors (b) Short-term Provisions (b) Other Current Liabilities TOTAL Profit and Loss Account (i) Tangible Assets: Proposed Dividend Provision for Tax Income Tax Payable Freehold Premises Plant (2) Current Assets: (a) Inventories (b) Trade Receivables ---Debtors (c) Cash and Cash Equivalents -- Cash at Bank Note No. (2) Amount (3) 1,50,000 60,000 20,000 60,000 46,850 17,250 41,000 5,750 4,00,850 60,000 30,000 1,50,000 1,01,500 59,350 4,00,850