Illustration - 15 On 1st April, 2008 Hero Ltd. was incorporated with an authorised capital of Rs. 1,000 lakhs. It issued to its promoters equity capital of Rs. 50 lakhs which was paid for in full. On that day it purchased the running business of Vijay Ltd. for Rs. 200 lakhs and allotted at par equity capital of Rs. 200 lakhs in discharge of the consideration. The net assets taken over from Vijay Ltd. were valued as follows: Fixed assets Rs. 150 lakhs, inventory Rs. 10 lakhs, customers' dues Rs. 70 lakhs and Creditors Rs. 30 lakhs. Hero Ltd. carried on business and the following information is furnished to you: a. Summary of cash/bank transactions for year ended 31 st March, 2009. Rs.in lakhs Equity capital raised : a15 Promotores (as shown above) 50 250 300 4,000 20 4,320 2,000 700 500 Others Collections from customers Sale proceeds of Fixed assets (cost Rs.18 crores) Less: Payment to suppliers Payment for employees Payment for expenses Investments in Upkar Ltd. Payments to suppliers of Fixed assets: Instalment due Interest Tax payment Dividend Closing cash/bank balance 3,200 100 600 50 3,200 270 50 50 1,320 b. On 31st March, 2009 Hero Ltd.'s assets and liabilities were. Inventory at cost Customers' dues Prepaid expenses Advances to suppliers Amounts due to suppliers of goods Amounts due to suppliers of Fixed assets Outstanding expenses c. Depreciation for the year under: 1. Companies Act, 1956 ii. Income tax Act, 1961 Rs.in lakhs 15 400 10 40 260 750 30 c. Rs. 180 lakhs Rs. 200 lakhs d. Provide for tax at 35% of total income". There are no disallowables for the purpose of income taxation, provision for tax is to be rounded off. i. Revenue statement for the year ended 31st March, 2009 and ii. Balance Sheet as on 31st March, 2009 from the above information