Page 363 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Accounting for Companies-I

Notes `
Paid up Capital 45 lakhs
Free Reserve 22.5 lakhs
Loss in 2005 2.25 lakhs

Dividend declared in 2000, 2001, 2002, 2003 and 2004 are 13.5%, 12.5%, 16%, 15 & 13%.
Ans: Maximum amount can be distributed as dividend ` 450,000 and the maximum rate of
dividend, 10%).

2. Calculate the amount of divisible profits for year 2005 from the information given below:
2003 2004 2005
` in lakhs ` in lakhs ` in lakhs

I Profit or Loss before depreciation -60 -30 +50
II Depreciation provided in the book. 6 6 9
III Depreciation as prescribed under Section 205 48 42 36
Ans: Divisible profits are ` 24,00,000(150-48-42-36)

3. On 31st December, 2005 the paid up capital of XYZ Company Limited was as under:
`
(a) 2,500 8% Tax Free Preference Shares ` 100 each issued before
1 April, 1960 2,50,000
st
(b) 2,500 9% Tax Free Preference Shares of ` 100 each issued after
1 April, 1960 2,50,000
st
(c) 5,000 10% Taxable Preference Shares of ` 100 each issued before
st
1 April, 1960 5,00,000
(d) 5,000 10% Taxable Preference Shares ` 100 each issued after
st
1 April, 1960 5,00,000
(e) 12,500 Equity Share of ` 100 each issued before 1 April, 1960 12,50,000
st
(f) 12,500 Equity Shares of ` 100 each issued, as right shares on 1 April,
st
2005 to rank for dividend from 1st May, 2005 fully paid up less ` 50,000
call in arrears. 12,00,000

Calculate the amount of profits that should be available so that directors may (i) transfer
` 2,50,000 to General Reserve, (ii) recommend the dividend due to preference shares and a
dividend of 10% equity shares for the year 2005, any carry forward 20% of profits.
Ans: Profit should be available ` 7,61,250

Answers: Self Assessment

1. Trading 2. Profit & Loss
3. Debit, Trading 4. Debit, Profit & Loss
5. Trading 6. Trading, P & L A/c

7. False 8. True
9. True 10. True

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