Show the presentation of the following information under the appropriate heads of the balance sheet of a
Question:
Show the presentation of the following information under the appropriate heads of the balance sheet of a public limited company.
(i) General reserve (beginning) stood at ₹30,00,000, profit and loss account (beginning) at ₹10,00,000.
Profit made during the year was ₹60,00,000. Dividend proposed amounted to ₹28,00,000. Transfer made to the general reserve was ₹20,00,000. Profit and loss (year-end) stood at ₹22,00,000.
(ii) The cost of furniture (beginning) was ₹34,00,000. Furniture purchased during the year amounted to ₹12,00,000. Cost of furniture sold during the year was ₹8,00,000. Provision for depreciation
(beginning) was ₹17,00,000, provision for depreciation (year-end) being ₹19,50,000.
(iii) Investments consists of:
(a) 10,00,000 equity shares of A Ltd. of ₹10 each, ₹1,20,00,000,
(b) 1,50,000, 13 per cent debentures of A Ltd of ₹100 each, ₹1,30,00,000,
(c) 1,00,000 equity shares of Z Ltd of
₹100 each ₹60 called up, ₹ 80,00,000. Share capital of the company comprises 20,00,000 equity shares of ₹100 each, ₹90 called up and 5,00,000 14 per cent preference shares of ₹100 each fully paid up. Dividends on the preference shares are in arrears for the last 3 years.
Step by Step Answer:
Management Accounting Text Problems And Cases
ISBN: 9781259026683
6th Edition
Authors: M Y Khan, P K Jain