8. Following is the abridged Balance Sheet of Ganesha Limited: Balance Sheet as on 31-3-2013 Liabilities...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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. 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.
Expert Answer:
Answer rating: 100% (QA)
Trading and Profit Loss Account Particulars Amount Rs To Opening Stock 21000 To Purchases 111000 To Gross Profit 16650 To Wages 3000 To Other Expenses 2000 To Interest on Debentures 500 To Net Profit ... View the full answer
Related Book For
Posted Date:
Students also viewed these general management questions
-
The Chemco Company uses a highly toxic chemical in one of its manufacturing processes. It must have the product delivered by special cargo trucks designed for safe shipment of chemicals. As such,...
-
Chemco Corporation produces a chemical mixture for a specific customer in 1,000-pound batches. The mixture contains three ingredientszinc, mercury, and potassium. The mixture must conform to formula...
-
A chemical spill occurs at a manufacturing plant, and groundwater sampling reveals that the conservative pollutant is now in the groundwater directly under the location of the spill. If the aquifer...
-
Francine Frost graduated from State University with a degree in accounting five years ago, she was promoted to manager last week by the local CPA firm Ross & Denning, LLP. The firm has two...
-
How does a business decide whether to trade with a foreign country? What are the key factors for participating in the information economy on a global basis?
-
What is the role of ASN.1 in the ISO/OSI reference model 's presentation layer?
-
The following errors or irregularities could occur in the executing and recurding of manufacturing transactions and in the safeguarding of work in process in the Leslie Company: 1. Goods of inferior...
-
Springfield Bank is evaluating Creek Enterprises, which has requested a $4,000,000 loan, to assess the firm's financial leverage and financial risk. On the basis of the debt ratios for Creek, along...
-
A bond's current yield equals the bond's fixed annual interest payment divided by its bond price. It is a measure of the current annual income (the total of both semiannual interest payments in...
-
Genesis Computers assembles and sells inexpensive laptop computers from industry standard parts which are generally purchased from the lowest bidder. Its strategy is to avoid direct competition with...
-
Marlow Company purchased a point-of-sale system on January 1 for $3,400. This system has a useful life of 10 years and a salvage value of $400. What would the book value of the asset be at the end of...
-
A local spatial average of a power delay profile is shown in Fig. 1. 0 dB -10 dB P,(x) -20 dB- -30 dB 0 Fig. 1 2 6. (s) T (i) Determine the rms delay spread and mean access delay for the channel....
-
The most recent financial statements for Crosby Incorporated, follow. Sales for 2021 are projected to grow by 30 percent. Interest expense will remain constant; the tax rate and the dividend payout...
-
The graph to the right shows the supply and demand for coffee in a small town. a. Calculate the dollar value of consumer, producer, and total surplus with the market in equilibrium. Show your work....
-
You have concluded that next year the return on a stock would have the following distribution. Economic Status Probability Weak Economy 0.15 Static Economy Strong Economy 0.60 0.25 Rate of Return -5%...
-
Using the schema of the tables, write relational algebra expressions for the following queries. 1 List the name and rating of the products that do not use Windows system. 2 List the user IDs and...
-
You are still looking for information on the economic impact of climate change. This time you search for (climate change) AND (cities OR urban) AND (costs OR economics). You get too many results and...
-
The graph of an equation is given. (a) Find the intercepts. (b) Indicate whether the graph is symmetric with respect to the x-axis, the y-axis, or the origin. -3 6 -6 3 x
-
For the linear programming model for Southern Sporting Goods Company, formulated in Problem 7 and solved graphically in Problem 8: a. Determine the sensitivity ranges for the objective function...
-
If the Retread Tire Company in Problem 2 changes its pricing for recapping a tire from $25 to $31, what effect will the change have on the break-even volume?
-
On their farm, the Friendly family grows apples that they harvest each fall and make into three productsapple butter, applesauce, and apple jelly. They sell these three items at several local grocery...
-
Clausius-Clayperon equation is applicable to (a) Solid-vapour (b) Solid-liquid (c) Liquid-vapour (d) All of these.
-
The reaction \(A(\mathrm{l}) ightarrow R(\mathrm{~g})\) is allowed to reach equilibrium condition in an autoclave. At equilibrium there are two phases - one a pure liquid phase of \(A\) and the other...
-
The equilibrium constant for the reaction \(\mathrm{N}_{2}(\mathrm{~g})+3 \mathrm{H}_{2}(\mathrm{~g}) ightarrow 2 \mathrm{NH}_{3}\) is 0.1084 . Under the same conditions, the equilibrium constant for...
Study smarter with the SolutionInn App