The following were the balance sheets of the Andhra Industrial Corporation Ltd., as on 31st December, 2007
Question:
The following were the balance sheets of the Andhra Industrial Corporation Ltd., as on 31st December, 2007 and 2008.
Balance Sheet 31st Dec. 31st Dec.
Assets 2007 2008 Rs. Rs.
Fixed Assets:
Property 1,48,500 1 ,44,250 Machinery 1,12,950 1,26,200 Goodwill — 10,000 Current Assets:
Stock 1,10,000 92,000 Trade Debtors 86,160 69,430 Cash and Bank 1,500 11 ,000 Pre-payments 3,370 1,000 4,62,480 4,53,880 Liabilities Shareholders’ Funds:
Paid-up Capital 2,20,000 2,70,000 Reserves 30,000 40,000 Profit and Loss Account 39,690 41,220 Current Liabilities:
Creditors 39,000 41,660 Bills Payable 33,790 11 ,000 Bank Overdraft 60,000 —
Provision for Taxation 40,000 50,000 4,62,480 4,53,880 During the year ended 31st December, 2008 a dividend of Rs. 26,000 was paid and assets of another company were purchased for Rs. 50,000 payable in fully paid-up shares. Such assets purchased were :
Stock Rs. 21,640; Machinery Rs. 18,360; and Goodwill Rs. 10,000.
In addition, Plant at a cost of Rs. 5,650 was purchased during the year. The following depreciation was written off during the year.
On property Rs. 4,250, and on Machinery Rs. 10,760, Income tax during the year amounting to Rs. 28,770 was changed to provision for taxation. Net profit for the year before tax was Rs. 76,300.
Prepare a statement of changes in financial position of the company.
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