return on plan assets. Illustration 11 RKA Private Ltd is an old company established in 19XX. The company started with a very small capital base and today it is one of the leading companies in India in its industry. The company has an annual turnover of 7 11,000 crores and planning to get listed in the next year. The company has a large employee base. The company provided a defined benefit plan to its employees. Following is the information relating to the balances of the fund's assets and liabilities as at 1st April, 20X1 and 31st March, 20X2. in lacs Particulars 1st April, 20X1 31st March, 20X2 Present value of benefit obligation 1,400 1,580 Fair value of plan assets 1,140 1,275 For the financial year ended 31st March, 20X2, service cost was 55 lacs. The company made a contribution of an amount of 7 111 lacs to the plan. No benefits were paid during the year. Consider a discount rate of 8%. You are required to - (a) Compute the balance(s) of the company to be included its balance sheet as on 31st March, 20X2 and amounts to be recognized in the statement of profit and loss and other comprehensive income for the year ended 31st March, 20X2. (b) Give the journal entries in respect of amount(s) to be recognized