234

Problem 3 Celluloid Dolls Ltd has prepared its balance sheet as shown in Table 8.15 for the year ended 31 March 2012 Table 8.15 Balance sheet of Celluloid Dolls Ltd Liabilities Assets in lakh) (in lakh) Equity shares 700 Fixed assets 1.000 Reserves and surplus 600 Inventories 800 Long-term loan 500 Debtors 200 Sundry creditors 300 Cash and bank 100 Total 2.100 Total 2.100 F An analysis of the information revealed that there is a default in the repayment of an instalment of a long-term loan of $100 lakh obtained from financial institutions. Furthermore, debtors include a sum of 140 lakh, which is due to be received only on 31 July 2012. Inventories include core items at a value of 280 lakh. Compute the maximum permissible bank finance using all the three methods of Tandon Committee norms