Following is the Profit and Loss Account of Azad Ltd. for the year ended 31st March, 2017:

Additional information :
Original cost of the Machinery sold was ~ 40,000. Depreciation on fixed assets as per Schedule II of the Companies Act, 2013 was ~ 3,42,000.
You are required to calculate managerial remuneration in the following situations :
(i) when there is only one whole-time director;
(ii) when there are two whole-time directors; and
(iii) when there are two whole-time directors, a managing director and a part-time director.

Transcribed Image Text:

Dr. Particulars To Office and Administrative Expenses To Selling and Distribution Expenses To Directors' Fees To Managerial Remuneration To Interest on Debentures To Donation to Charitable Trust To Compensation for Breach of Contract To Depreciation on Fixed Assets To Investment Revaluation Reserve To Provision for Taxation To General Reserve To Balance c/d 3,10,000 By Balance b/d 1,92,000 By Gross Profit b/d 39,500 By Subsidies 1,70,000 By Interest on Investment 18,500 By Transfer Fees 15,000 By Profit on Sale of Machinery (WDV* 30,000) 27,000 3,12,000 12,500 7,40,000 Particulars 2,50,000 8,46,500 29,33,000 Cr. ₹ 3,43,200 24,15,000 1,39,300 9,500 1,000 25,000 29,33,000