Following informations are obtained from the books of Sunrise Company Limited as on 31st March, 2016 : Сapital 2$ 10,000 Equity Shares of $ 10 each fully paid up 10,000 Equity Shares of $ 10 each, $ 7.50 per share called and paid up 10,000 Equity Shares $ 10 each, 5 per share called and paid up General Reserve 1,00,000 Liabilities to Sundry Parties Fixed Assets less Depreciation 75,000 Commission on Issue of Shares Discount on Shares 1,35,000 55,000 1,67,000 6,000 9,000 2,33,000 50,000 Floating Assets It is estimated that the normal average profit less tax of the company will be maintained at and the expected rate for capitalisation purpose is 8%. Calculate the values of each type of share by the assets backing method (excluding goodwill) and also by the earning capacity method. Assume dividends are deciared on paid up capital. 36,000,
Following informations are obtained from the books of Sunrise Company Limited as on 31st March, 2016 : Сapital 2$ 10,000 Equity Shares of $ 10 each fully paid up 10,000 Equity Shares of $ 10 each, $ 7.50 per share called and paid up 10,000 Equity Shares $ 10 each, 5 per share called and paid up General Reserve 1,00,000 Liabilities to Sundry Parties Fixed Assets less Depreciation 75,000 Commission on Issue of Shares Discount on Shares 1,35,000 55,000 1,67,000 6,000 9,000 2,33,000 50,000 Floating Assets It is estimated that the normal average profit less tax of the company will be maintained at and the expected rate for capitalisation purpose is 8%. Calculate the values of each type of share by the assets backing method (excluding goodwill) and also by the earning capacity method. Assume dividends are deciared on paid up capital. 36,000,
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Following informations are obtained from the books of Sunrise Company Limited as on 31st March, 2016 :
Сapital
2$
10,000 Equity Shares of $ 10 each
fully paid up
10,000 Equity Shares of $ 10 each,
$ 7.50 per share called and paid up
10,000 Equity Shares $ 10 each,
5 per share called and paid up
General Reserve
1,00,000 Liabilities to Sundry Parties
Fixed Assets less Depreciation
75,000 Commission on Issue of Shares
Discount on Shares
1,35,000
55,000
1,67,000
6,000
9,000
2,33,000
50,000 Floating Assets
It is estimated that the normal average profit less tax of the company will be maintained at
and the expected rate for capitalisation purpose is 8%. Calculate the values of each type of share by the
assets backing method (excluding goodwill) and also by the earning capacity method. Assume dividends are
deciared on paid up capital.
36,000,
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