y3 150 15 85 20 share of 100 each 1,00,000 equity 5,00,00,000 25,00,00,000 shares of 100 Subscribed: each 60 called 20,00,000 Equity shares up of Z Ltd of 100 each. 80,00,000 90 called up 1,50,000 13% 18,00,00,000 Debentures of 5,00,000 14% Preference A Ltd. 1,30,00.000 3,10,00,000 shares of 100 each (valued at cost) fully paid up 5,00,00,000 23,00,00,000 A footnote to the balance sheet: Contingent Liabilities: 1. Arrears of preference dividend for last 3 years, 2,10,00,000 2. Liability in respect of partly paid shares of Z ltd held by the company uncalled capital, 40,00,000. P.4.3 The following is the Trial balance of Amit Ltd., as at March 31, 2013: (Amount in lakh) Particulars Dr. Cr. Particulars Dr. Cr. Stock (April 1, 2009) 375 Purchases return 50.0 Purchases and sales 1,225 1.700 Wages Discount Carriage on purchases 2.75 Furniture and fittings Salaries 37.5 Rent Sundry expenses 45.25 Share capital 5 lakh shares Interim dividend 45 @ 100 each) 500 Debtors and creditors 137.5 87.5 Plant and machinery 145 Cash at bank 251 General reserve 77.5 Patents and trade marks 24 Bills receivable 25 Development rebate Bills payable 35 reserve 28.0 Profit and loss Alc Investments 2.250 (March 31, 2012) 75 5,068 5,068.0 10% Debentures 2,500 Debenture interest 250 Prepare profit and loss account for the year ended 31* March, 2013 and balance sheet as at that date after considering the following adjustments: (i) Stock on 31 March 2013 was valued at 840 lakh. (ii) Make a provision for income tax @ 35 per cent. (iii) Transfer 10 lakh to the Development rebate reserve account on March 31, 2013. (iv) Create debenture redemption reserve of 100 lakh. (v) Depreciate plant and machinery @ 10 per cent, furniture & fittings @ 10 per cent and patents and trade marks 5 per cent. (vi) On March 31, 2013, outstanding rent amounted to 4 lakh while outstanding salaries totaled 4.5 lakh. (vii) Sundry debtors include outstanding 25 lakh for more than six months and make a provision for doubtful debts amounting to 15 lakh. (viii) The directors proposed a dividend @ 15 per cent per annum for the year ended March 31, 2010 after transfer of 5 per cent to general reserve. (ix) Provide for managerial remuneration of 45.18 lakh