Q.2 The balance sheet of XYZ company over five years is given below. The company declares a dividend of Rs.10 million in Year 2, Rs. 15 million in Year 3, Rs. 20 million in Year 4 and Rs. 25 million in Year 5.

Find

1. Profit for the year 2, 3,4 and 5, and ()

(Hint: RE = PAT Dividend. Profits for 2^nd year = 110, 3^rd year = 140, 4^th year = 170, 5^th year = 250 )

(b) How the company used profit from Year 2 to Year 5 (Hint: compare TA = TL + OE) (Amounts in Million Rs.)

Assets/Liabilities	Year 1	Year 2	Year 3	Year 4	Year 5
Total assets	300	300	500	600	600
Liabilities + OE
Liabilities to outsiders	200	150	300	325	300
Equity share capital	50	50	75	75	75
Reserves and surplus	50	100	125	150	225
Total Liabilities and shareholders equity	300	300	500	600	600