2. Following in the Balance Sheet of Navrang Co. Ltd., as on 31st December 2020.Share Capital:3000 5% pref. shares of *100each6000 Equity shares of 100each6% DebenturesBank OverdraftCreditorsGoodwillLand & Buildings3,00,000 Machinery22,5003,00,0004,50,000Stock65,0006,00,000 Debtors70,0001,50,000 Cash7,5001,50,000 Profit and Loss Account75,000 Preliminary expenses3,50,00010,00012750001275000On the above date the company adopted the following scheme of reconstruction.i) The preference shares are to be reduced to fully paid shares of *75 each and equityshares are to be reduced to shares of 40 each fully paid.ii) The Debenture holders took over stock and debtors in full satisfaction of their claims.iii) The fictitious assets are to be eliminated.iv) The land and buildings to be appreciated by 40% and machinery to be depreciated by30%.Give Journal entries incorporating the above scheme of reconstruction and prepare thereconstructed balance sheet.20 was as follows

Journal Entries 1. Reduction of Preference Shares:Dr. Preference Share Capital (3000 shares × ₹25)…

Answered: 2. Following in the Balance Sheet of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ide Corporation Ltd’s Statement of Financial Position for the 2017 and 2018 financial years are as follows: Assets 2018(R) 2017(R) Non-Current Assets 5 000 000 3 800 000 Inventory 500 000 700 000 Receivables 350 000 420 000 Cash 280 000 140 000 6 130 000 5 060 000 Equity and Liabilities Share Capital (R2 shares) 2 600 000 1 700 000 Retained Income 500 000 940 000 Long term Debt 2 000 000 1 800 000 Payables 1 030 000 620 000 6 130 000 5 060 000 The abbreviated Statement of Comprehensive Income for the year ended 2018 reflects the following: R Sales (75% on credit) 2 400 000 Cost of sales 1 600 000 Depreciation 62 000 Interest expense 96 000 Tax (30%) 160 000 Net Income after tax 300 000 Dividends 240 000 Retained Income 60 000 NB: Their shares are currently trading at R3 per share. Required: 2.1 Calculate the gross profit margin and net profit margin. 2.2 Calculate the Earnings Per Share (EPS) and Dividends Per Share (DPS) for the current year. Explain what occurs to the difference…
2. The balance sheet for Putnam Corporation at the end of the current year include the following: ManEco-01 Page 7 of 9 FINANCIAL STATEMENT ANALYIS Bonds payable, 6% P5,000,000 1,000,000 6% Preferred stock, P100 par Common stock, P10 par. 2,000,000 Income before income taxes was P950,000 and income tax expense for the current year amounted to P285,000. Cash dividends paid on common stock were P200,000, and the common stock was selling for P40 per share at the end of the year. There were no ownership changes during the year. Instructions Determine each of the following: (a) times Interest earned. (b) earnings per share for common stock. (c) price-earnings ratio.
Following are the Balance Sheets of X Ltd. for the year 2014 and 2015. 2014 2015 sin '000 sin '00 L Equity and Liabilities (1) Shareholders' Funds (a) Share Capital : Equity Share Capital 8% Redeemable Preference Share Capital (b) Reserves and Surplus : General Reserve Surplus Account (2) Non-current Liabilities 200 320 150 90 40 70 15 38 Debentures 100 90 (3) Current Liabilities Creditors 55 83 Bills Payable Proposed Dividend (Treating it as non-current liability) Provision for Tax (NCL) 20 16 42 50 40 50 Total Equity and Liabilities 662 807 II. Assets (1) Non-current Assets Fixed Assets: Land & Building Plant & Machinery Intangible Asset : Goodwill 200 80 170 200 80 100 (2) Current Assets Stock Debtors B/R Cash & Bank Balances 59 250 30 18 87 150 20 25 Total Assets 662 807 Additional Information: (1) (1) (I) (IV) An interim dividend of $ 20,000 has been paid in 2015. $ 35,000 income tax was paid during the year 2015. Dividend of $ 28,000 was paid during the year 2015. During the year…
Here is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet ($ in millions) Current assets Long-term assets $ 42,529 46,842 Current liabilities Long-term debt Other liabilities Equity $ 29,750 27,757 14,327 17,537 $ 89,371 Total $ 89,371 Total Locust has 662 million shares outstanding with a market price of $88 a share. a. Calculate the company's market value added. b. Calculate the market-to-book ratio. c. How much value has the company created for its shareholders as a percent of shareholders' equity, that is, as a percent of the net capital contributed by shareholders? Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate the company's market value added. Note: Enter your answers in millions. Market value Market value added million million
Balance Sheet for Dex Company and Ed Company on December 31, 2023 are as follows: Dex Company Ed Company Cash P850,000 P75,000 Other Assets 2,200,000 425,000 Total Assets P3,050,000 P500,000 Liabilities P1,200,000 P100,000 Common Stock, P50 par 2,000,000 - Common Stock, P10 par - 250,000 Additional Paid-in Capital 500,000 - Retained Earnings (600,000) 150,000 Total Liabilities and Equity P3,050,000 P500,000 On this date, Dex Company acquired 80% of the stock of Ed Company. Instructions: Prepare a consolidated balance sheet and the eliminating entries as of December 31, 2023, under each set of conditions listed below. Subsidiary stock is acquired in exchange for 5,000 shares of the parent company stock, and the investment accounts is recorded at P300,000, the current market value of the shares issued. The difference between the investment balance an the book value of the interest acquired is…
EXAMPLE 10: From the following, compute Debt Equity Ratio: Equity Share Capital 1,00,000 General Reserve 80,000 6.5 % Debentures 75,000 Current Liabilities 90,000 o add notes COMMENTS OTES
The following are the Balance Sheets of XYZ Company Ltd. (Rs.in lakhs) 1.1.2020 Rs. 31.12.2020 Rs. Assets : Net Fixed Assets 900 1,000 Cash 50 50 Marketable Securities 100 - Debtors 100 400 Stock of Goods 600 800 Total 1,750 2,250 Liabilities : Equity Shares 500 500 Reserves 400 600 Long-term Debt 100 100 Creditors 200 250 Payables 450 650 Provisions 100 150 Total 1,750 2,250 From the above data, prepare a Comparative Balance Sheet with comments.?
1. Prepare common size horizontal analysis of the firm and comment on the significant trends found in your analysis.
Balance Sheet of Do Well Ltd. As on 31st March, 2016 was as follows: 1. Equity and Liabilities (1) Shareholders' Funds (a) Share Capital: Equity Shares @ $10 each 2,00,000 (Ь) Reserves and Surplus : Surplus Account 1,20,000 (2) Non-current Liabilities 6% Debentures 1,20,000 (2) Current Liabilities Creditors 60,000 Proposed Dividend 20,000 Total Equity and Liabilities 5,20,000 II. Assets (1) Non-current Assets Fixed Assets : Freehold Property 1,00,000 (2) Current Assets Stock 1,20,000 Debtors 80,000 Balance at Bank 2,20,000 Total Assets 5,20,000 At the annual general meeting held on 18th April, 2016 it was resolved: (i) To declare dividend of 10% for the accounting year ended on 31st March, 2016. (ii) To issue one bonus share for every 4 shares held out of Surplus Account. (iii) To give existing shareholders the option to purchase for cash one share for $15 for every 4 shares held prior to the bonus distribution. This option was accepted by all the shareholders. (On this no bonus share…
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3. Calculate current ratio and Liquid ratio from the following: RO 152,000 RO 113,000 RO 24,000 RO 18,000 RO 8,000 Share capital Fixed Assets 5% Debentures Debtors General reserve Cash in hand and at Bank Creditors Bill Payables Stock RO 30,000 RO 20,000 RO 4,000 RO 52,000 RO 5,000 Profit and Loss A/c
.. From the following, calculate (a) Debt-Equity Ratio (b) Total Assets to Debt Ratio Equity Share Capital $75,000 Share application money pending allotment $25,000 General Reserve $45,000 Balance in the Statement of Profit & Loss $30,000 Debentures $75,000 Trade Payables $40,000 Outstanding Expenses $10,000

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