8. Following is the abridged Balance Sheet of Ganesha Limited: Balance Sheet as on 31-3-2013 Liabilities...

  

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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.

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