From the following details of an electricity supply company, maintaining accounts under Double Account System, calculate the following: (a) Clear profit (b) capital base Sale of energy 12,40,000 Management expenses 90,000 Depreciation 1,000 Interest on loan from Electricity Board 6,05,000 Contingency Reserve Investment Income 65,000 Interest on Security Deposits 18,000 Contribution to Provident Fund 5,000 Interest on Bank Deposits 3,000 90,000 60,000 9,000 5,000 1,000 32,000 600 Meter rents Transfer fees Costs of generation Distribution and selling expenses Rent, Rates and Taxes Audit fees Intangibles written off Original cost of Fixed Assets is $ 27,00,000 ; contributions by consumers for acquisition of such Fixed Assets $ 2,00,000; cost of intangibles $ 50,000 ; Contingency Reserve Investment $ 50,000 ; Stores opening and closing $ 40,000 and $ 60,000 respectively ; Cash and Bank balances - opening $ 30,000 and closing $ 50,000. Depreciation upto the beginning of the year $ 5,00,000. Intangibles written off upto the beginning of the year $ 40,000. Security deposits of customers held in cash $ 20,000, Tariffs and Dividend Control Reserve – opening balance $ 80,000. Development Reserve - opening balance $ 1,20,000. Amount carried forward for distribution to consumers $ 15,000. Loan from State Electricity Board $ 90,000. No new Plant and Machinery was added in the year. Transfer in the year to Contingency Reserve was $ 8,000. Reserve Bank rate is to be adopted at 8%.
From the following details of an electricity supply company, maintaining accounts under Double Account System, calculate the following: (a) Clear profit (b) capital base Sale of energy 12,40,000 Management expenses 90,000 Depreciation 1,000 Interest on loan from Electricity Board 6,05,000 Contingency Reserve Investment Income 65,000 Interest on Security Deposits 18,000 Contribution to Provident Fund 5,000 Interest on Bank Deposits 3,000 90,000 60,000 9,000 5,000 1,000 32,000 600 Meter rents Transfer fees Costs of generation Distribution and selling expenses Rent, Rates and Taxes Audit fees Intangibles written off Original cost of Fixed Assets is $ 27,00,000 ; contributions by consumers for acquisition of such Fixed Assets $ 2,00,000; cost of intangibles $ 50,000 ; Contingency Reserve Investment $ 50,000 ; Stores opening and closing $ 40,000 and $ 60,000 respectively ; Cash and Bank balances - opening $ 30,000 and closing $ 50,000. Depreciation upto the beginning of the year $ 5,00,000. Intangibles written off upto the beginning of the year $ 40,000. Security deposits of customers held in cash $ 20,000, Tariffs and Dividend Control Reserve – opening balance $ 80,000. Development Reserve - opening balance $ 1,20,000. Amount carried forward for distribution to consumers $ 15,000. Loan from State Electricity Board $ 90,000. No new Plant and Machinery was added in the year. Transfer in the year to Contingency Reserve was $ 8,000. Reserve Bank rate is to be adopted at 8%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:From the following details of an electricity supply company, maintaining accounts under Double Account
System, calculate the following:
(a) Clear profit (b) capital base
Sale of energy
12,40,000 Management expenses
90,000 Depreciation
1,000 Interest on loan from Electricity Board
6,05,000 Contingency Reserve Investment Income
65,000 Interest on Security Deposits
18,000 Contribution to Provident Fund
5,000 Interest on Bank Deposits
3,000
90,000
60,000
9,000
5,000
1,000
32,000
600
Meter rents
Transfer fees
Costs of generation
Distribution and selling expenses
Rent, Rates and Taxes
Audit fees
Intangibles written off
Original cost of Fixed Assets is $ 27,00,000 ; contributions by consumers for acquisition of such
Fixed Assets $ 2,00,000; cost of intangibles $ 50,000 ; Contingency Reserve Investment $ 50,000
; Stores opening and closing $ 40,000 and $ 60,000 respectively ; Cash and Bank balances -
opening $ 30,000 and closing $ 50,000.
Depreciation upto the beginning of the year $ 5,00,000. Intangibles written off upto the
beginning of the year $ 40,000. Security deposits of customers held in cash $ 20,000, Tariffs and
Dividend Control Reserve – opening balance $ 80,000. Development Reserve - opening balance
$ 1,20,000.
Amount carried forward for distribution to consumers $ 15,000. Loan from State Electricity
Board $ 90,000. No new Plant and Machinery was added in the year. Transfer in the year to
Contingency Reserve was $ 8,000. Reserve Bank rate is to be adopted at 8%.
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