Page 99 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Accounting for Companies-I

Notes Part-II: Balance Sheet of K Ltd after reconstruction:
Balance Sheet of K Ltd as at 1.4.2009
Liabilities Assets
Share capital Fixed assets
Authorised Cost:
Issued, subscribed and paid up Less : Provision for 100
equity shares of 200 lakhs of 10 20 Depreciation (100) Nil
each
Investment at Cost
12% Redeemable preference shares (Market Value of 100
were redeemed at par. Investments =
400 crores)
Capital Redemption Reserve 80 redemption and buy (100) 240
back
340 340

Part-III: Net Asset Value of Equity Shares
( in crores)
Particulars Amount Amount
a. (i) Fixed assets
(ii) Investments (at market value) Nil 400
(iii) Current assets 240 640
b. Less : Current liabilities (40)
Net assets available for equity share holders 600
c. No. of equity shares outstanding (in lakhs) 2
d. Value per equity share of 10 each = (600÷2) 300
Problem 2: The following was the balance sheet of Diamond Ltd. as at 31st March, 2009.

Liabilities in lakhs
10% Redeemable Preference Shares of 10 each, fully paid up 2,500
Equity Shares of 10 each fully paid up 8,000
Capital Redemption Reserve 1,000
Securities Premium 800
General Reserve 6,000
Profit and Loss Account 300
9% Debentures 5,000
Sundry creditors 2,300
Sundry Provisions 1,000
26,900
Assets in lakhs
Fixed assets 14,000
Investments 3,000
Cash at Bank 1,650
Other Current assets 8,250
26,900

92 LOVELY PROFESSIONAL UNIVERSITY