Enterprise Ltd. has 2 divisions Laptops and Mobiles. Division Laptops has been making constant profits while division Mobiles has been invariably suffering losses. On 31st March, 2021 the division-wise draft Balance Sheet was: Fixed assets cost Depreciation Net Assets Current assets: Less: Current liabilities Total (A+B) Financed by: Loan funds Capital : Equity 10 each Surplus (A) (B) Laptops 250 (225) 25 200 (25) 175 200 25 175 200 Mobiles 500 (400) 100 500 (400) 100 200 300 (100) 200 (in crores) Total 750 (625) 125 700 (425) 275 400 300 25 75 400 Division Mobiles along with its assets and liabilities was sold for 25 crores to Turnaround Ltd. a new company, who allotted 1 crore equity shares of 10 each at a premium of 15 per share to the members of Enterprise Ltd. in full settlement of the consideration, in proportion to their shareholding in the company.
Enterprise Ltd. has 2 divisions Laptops and Mobiles. Division Laptops has been making constant profits while division Mobiles has been invariably suffering losses. On 31st March, 2021 the division-wise draft Balance Sheet was: Fixed assets cost Depreciation Net Assets Current assets: Less: Current liabilities Total (A+B) Financed by: Loan funds Capital : Equity 10 each Surplus (A) (B) Laptops 250 (225) 25 200 (25) 175 200 25 175 200 Mobiles 500 (400) 100 500 (400) 100 200 300 (100) 200 (in crores) Total 750 (625) 125 700 (425) 275 400 300 25 75 400 Division Mobiles along with its assets and liabilities was sold for 25 crores to Turnaround Ltd. a new company, who allotted 1 crore equity shares of 10 each at a premium of 15 per share to the members of Enterprise Ltd. in full settlement of the consideration, in proportion to their shareholding in the company.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Enterprise Ltd. has 2 divisions Laptops and Mobiles.
Division Laptops has been making constant profits while division Mobiles has been invariably suffering
losses.
On 31st March, 2021 the division-wise draft Balance Sheet was:
Fixed assets cost
Depreciation
Net Assets
Current assets:
Less: Current liabilities
Total (A+B)
Financed by:
Loan funds
Capital : Equity 10 each
Surplus
(A)
(B)
Laptops
250
(225)
25
200
(25)
175
200
25
175
200
Mobiles
500
(400)
100
500
(400)
100
200
300
(100)
200
(in crores)
Total
750
(625)
125
700
(425)
275
400
300
25
75
400
Division Mobiles along with its assets and liabilities was sold for 25 crores to Turnaround Ltd. a new
company, who allotted 1 crore equity shares of 10 each at a premium of 15 per share to the
members of Enterprise Ltd. in full settlement of the consideration, in proportion to their shareholding in
the company.
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