Following informations are culled out from the books of Scarce Lighting Company : ($ in lakhs) ($ in lakhs) Sale of Energy Meter Rents 15.0 Contribution to Provident Funds 0.2 Original Cost of Fixed Assets Contribution from Consumers for 1.0 40.0 Cost of Generation 9.0 Selling and Distribution Expenses Rent, Rates and Taxes Management Expenses (including Audit Fee of 0.2) Depreciation Interest on Loan from State Electricity Board Contingency Reserve Income Interest on Security Deposit 2.0 Purchase of Fixed Assets 2.0 Cost of Intangibles Intangibles Write Off Stores-Opening Stores-Closing 0.5 0.5 0.1 0.5 0.2 0.05 0.3 0.2 Cash and Bank Balances-Opening Balances-Closing Contingency Reserve Investments 0.3 0.3 0.1 0.2 Interest from Bank 0.1 5.0 Further details are as under : ( $ in lakhs) Depreciation Accumulation at the beginning of the year Intangibles Written off upto the beginning of the year Security Deposit of Customers held in cash Tariff and Dividend Control Reserve-Opening Balance Development Reserve-Opening Balance Amount Carried Forward for Distribution to Consumers 5.0 0.5 0.5 1.0 0.8 0.7 Loan from Electricity Board Transfer to Contingency Reserve 3.0 0.4 Interest Rate 6% From the given details calculate : (i) Clear Profit ; (ii) Capital Base ; (iii) Reasonable Return ; (iv) Amount Available for Dividend ; (v) Contribution to Tariffs and Dividend Control Reserve.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Following informations are culled out from the books of Scarce Lighting
Company :
($ in lakhs)
($ in lakhs)
Sale of Energy
Meter Rents
15.0
Contribution to Provident Funds
0.2
Original Cost of Fixed Assets
Contribution from Consumers for
1.0
40.0
Cost of Generation
9.0
Selling and Distribution Expenses
Rent, Rates and Taxes
Management Expenses
(including Audit Fee of 0.2)
Depreciation
Interest on Loan from State Electricity Board
Contingency Reserve Income
Interest on Security Deposit
2.0
Purchase of Fixed Assets
2.0
Cost of Intangibles
Intangibles Write Off
Stores-Opening
Stores-Closing
0.5
0.5
0.1
0.5
0.2
0.05
0.3
0.2
Cash and Bank
Balances-Opening
Balances-Closing
Contingency Reserve Investments
0.3
0.3
0.1
0.2
Interest from Bank
0.1
5.0
Further details are as under :
( $ in lakhs)
Depreciation Accumulation at the beginning of the year
Intangibles Written off upto the beginning of the year
Security Deposit of Customers held in cash
Tariff and Dividend Control Reserve-Opening Balance
Development Reserve-Opening Balance
Amount Carried Forward for Distribution to Consumers
5.0
0.5
0.5
1.0
0.8
0.7
Loan from Electricity Board
Transfer to Contingency Reserve
3.0
0.4
Interest Rate 6%
From the given details calculate :
(i) Clear Profit ; (ii) Capital Base ; (iii) Reasonable Return ; (iv) Amount Available for Dividend ; (v)
Contribution to Tariffs and Dividend Control Reserve.
Transcribed Image Text:Following informations are culled out from the books of Scarce Lighting Company : ($ in lakhs) ($ in lakhs) Sale of Energy Meter Rents 15.0 Contribution to Provident Funds 0.2 Original Cost of Fixed Assets Contribution from Consumers for 1.0 40.0 Cost of Generation 9.0 Selling and Distribution Expenses Rent, Rates and Taxes Management Expenses (including Audit Fee of 0.2) Depreciation Interest on Loan from State Electricity Board Contingency Reserve Income Interest on Security Deposit 2.0 Purchase of Fixed Assets 2.0 Cost of Intangibles Intangibles Write Off Stores-Opening Stores-Closing 0.5 0.5 0.1 0.5 0.2 0.05 0.3 0.2 Cash and Bank Balances-Opening Balances-Closing Contingency Reserve Investments 0.3 0.3 0.1 0.2 Interest from Bank 0.1 5.0 Further details are as under : ( $ in lakhs) Depreciation Accumulation at the beginning of the year Intangibles Written off upto the beginning of the year Security Deposit of Customers held in cash Tariff and Dividend Control Reserve-Opening Balance Development Reserve-Opening Balance Amount Carried Forward for Distribution to Consumers 5.0 0.5 0.5 1.0 0.8 0.7 Loan from Electricity Board Transfer to Contingency Reserve 3.0 0.4 Interest Rate 6% From the given details calculate : (i) Clear Profit ; (ii) Capital Base ; (iii) Reasonable Return ; (iv) Amount Available for Dividend ; (v) Contribution to Tariffs and Dividend Control Reserve.
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