8. Following is the abridged Balance Sheet of Ganesha Limited: Balance Sheet as on 31-3-2013 Liabilities Share Capital Profit and Loss Account Current Liabilities Assets 1,00,000 Land and Buildings 17,000 Plant and Machinery 40,000 Less: Depreciation 1,57,000 Current Assets Stock Debtors Bank 50,000 15,000 21,000 20,000 1,000 Share Capital 50% Other Shareholders Funds 15% 5% Debentures 10% Trade Creditors 25% 80,000 35,000 1,15,000 Total Total With the help of the additional information furnished below, you are required to prepare Trading and Profit & Loss Account and a Balance Sheet as on 31st March, 2014: 42,000 1,57,000 (i) The company went in for reorganisation of capital structure, with share capital remaining the same as follows: Debentures were issued on 1st April, interest being paid annually on 31st March. (ii) Land and Buildings remained unchanged. Additional plant and machinery has been bought and a further 5,000 depreciation written off. (The total fixed assets then constituted 60% of total gross fixed and current assets.) (iii) Working capital ratio was 8: 5. (iv) Quick assets ratio was 1:1. (v) The debtors (four-fifth of the quick assets) to sales ratio revealed a credit period of 2 months. There were no cash sales. (vi) Return on net worth was 10%. (vii) Gross profit was at the rate of 15% of selling price. (viii) Stock turnover was eight times for the year. Ignore Taxation.