Problem No.27. The following balances are extracted from the following financial statements of Maganlal Products Ltd. Balance Sheet as on 31st March, 2014 Particulars
Problem No.27. The following balances are extracted from the following financial statements of Maganlal Products Ltd. Balance Sheet as on 31st March, 2014 Particulars Bank Loan Rs. 2,00,000 Particulars Preliminary Expenses (Not yet w/o) 25,000 7% Preference Share Capital (Rs.100) 5,00,000 Stock (Closing) 4,00,000 Investments 2,50,000 12% Debentures 5,00,000 Trade Receivables 4,00,000 Bills Payable 1,00,000 Trade Payables 3,00,000 Land and Building 10,00,000 Goodwill 2,50,000 Equity Share Capital o 10 each) 10,00,000 Bills Receivable 2,75,000 Bank Overdraft 1,50,000 Plant and Machinery 6,00,000 Cash and Cash 75,000 Profit and Loss A/c (Cr.) 4,00,000 Fumiture 4,00,000 Unclaimed Dividend Prepaid Expenses Provision of Taxation 20,000 General Reserve 50,000 Advance Tax 2,30,000 Proposed Dividend 4,25,000 2,00,000 1,00,000 Maganial Products Ltd. Particulars Total Fixed sets Current assets +3900,000 Common size APPLICATION OF FUNDS: ASSETS 10,00,000 25.64% 4,00,000 10.26% 5,00,000 15.38% 2,50,000 22,50,000 6.41% 2,50,000 6.41% SOURCES OF FUNDS: WORKING CAPITAL SHAREHOLDERS FUNDS Equity share capital 10,00,000 S 7% Preference share capital 5,00,000 10.00.000/300,000 x 100 5,00,000/3500,000 x 100- 25.64% 4,00,000 3,75,000 10.26% 7.05% Reserves and surplus: paid exp 50,000 1.28% Profit and loss a/c (C) 4,00,000 General reserve 425,000 Less: Preliminary exp not w/off 4,00,000/35,00,000 x 100- 4,25,000/1,00,000 100- -25,000 23,00,000 25,000/35,00,000x100 4,000,000 10.2% 10.90% Cash and Bank 75,000 1.92% 2,00,000 14,00,000 ins Current BORROWED FUNDS Tradepa -3,00,000 -7.95 12% Debentures 5,00,000 Bank Loan 5,00,000/3500,000 & 100- 2,00,000 7,00,000 2,00,000/3500,000 x 100- 12.82% Unclaimed 20,000 0.51% 51% on for taxation 230000 -5.90% 1,00,000 256% 30,00,000 30,00,000/3900,000 100+ 1,50,000 3.85% Proposed Div 1,00,000 9,00,000 -2.56% 30,00,000 76.92%
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This problem involves analyzing the financial statements of Magnal Products Ltd The balance sheet is provided as of March 31 2014 We are required to examine and interpret various elements within the b... View full answer
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Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
13th edition
978-1285868806, 1285868803, 978-1305691254, 978-1305465640, 1305465644, 978-1285866307
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