Q-2 Given below are the extracts from the balance sheet of Bharat & Sheena Ltd. as at 31" March, 2022: Particulars Rs Equity share capital (shares of Rs 10 each fully paid-up) 80,00,000 12% Pref. share capital (Shares of Rs 100 each fully paid up) 20,00,000 Reserves and surplus 40,00,000 10% debentures 40,00,000 GMTESTSERIES.COM Current liabilities Goodwill Fixed tangible assets 10% trade investments Current assets 20,00,000 8,00,000 1,20,00,000 20,00,000 52,00,000 Additional Information: (i) Profit after tax @ 40%. 2019-2020: Rs 24,00,000, 2020-2021: Rs 36,00,000, 2021- 22: Rs 30,00,000 (ii) Trade investments are to be valued at 150% of face value (i.e. Rs 16,00,000) (iii) 60% debentures are to be redeemed prior to valuation of shares. (iv) Rate of Income tax-30% with effect from 1st April, 2022. org (v) Normal rate of return on net assets for equity shareholders is 10% (vi) Goodwill is to be valued at 3 years' purchase of super profits. Required: 1) Calculate goodwill ii) Calculate net asset value of an equity share Calculate yield based value of an equity share iv) Calculate the fair value of an equity share
Q-2 Given below are the extracts from the balance sheet of Bharat & Sheena Ltd. as at 31" March, 2022: Particulars Rs Equity share capital (shares of Rs 10 each fully paid-up) 80,00,000 12% Pref. share capital (Shares of Rs 100 each fully paid up) 20,00,000 Reserves and surplus 40,00,000 10% debentures 40,00,000 GMTESTSERIES.COM Current liabilities Goodwill Fixed tangible assets 10% trade investments Current assets 20,00,000 8,00,000 1,20,00,000 20,00,000 52,00,000 Additional Information: (i) Profit after tax @ 40%. 2019-2020: Rs 24,00,000, 2020-2021: Rs 36,00,000, 2021- 22: Rs 30,00,000 (ii) Trade investments are to be valued at 150% of face value (i.e. Rs 16,00,000) (iii) 60% debentures are to be redeemed prior to valuation of shares. (iv) Rate of Income tax-30% with effect from 1st April, 2022. org (v) Normal rate of return on net assets for equity shareholders is 10% (vi) Goodwill is to be valued at 3 years' purchase of super profits. Required: 1) Calculate goodwill ii) Calculate net asset value of an equity share Calculate yield based value of an equity share iv) Calculate the fair value of an equity share
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Q-2 Given below are the extracts from the balance sheet of Bharat & Sheena Ltd. as at 31"
March, 2022:
Particulars
Rs
Equity share capital (shares of Rs 10 each fully paid-up)
80,00,000
12% Pref. share capital (Shares of Rs 100 each fully paid up)
20,00,000
Reserves and surplus
40,00,000
10% debentures
40,00,000
GMTESTSERIES.COM
Current liabilities
Goodwill
Fixed tangible assets
10% trade investments
Current assets
20,00,000
8,00,000
1,20,00,000
20,00,000
52,00,000
Additional Information:
(i) Profit after tax @ 40%.
2019-2020:
Rs 24,00,000, 2020-2021:
Rs 36,00,000, 2021-
22:
Rs 30,00,000
(ii) Trade investments are to be valued at 150% of face value (i.e. Rs 16,00,000)
(iii) 60% debentures are to be redeemed prior to valuation of shares.
(iv) Rate of Income tax-30% with effect from 1st April, 2022.
org
(v) Normal rate of return on net assets for equity shareholders is 10%
(vi) Goodwill is to be valued at 3 years' purchase of super profits.
Required:
1)
Calculate goodwill
ii)
Calculate net asset value of an equity share
Calculate yield based value of an equity share
iv)
Calculate the fair value of an equity share](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fefd61fce-ffcb-4548-8256-1a303637797b%2F064b8426-6711-4277-ae4f-f4029a7f362f%2Fq961j2r_processed.png&w=3840&q=75)
Transcribed Image Text:Q-2 Given below are the extracts from the balance sheet of Bharat & Sheena Ltd. as at 31"
March, 2022:
Particulars
Rs
Equity share capital (shares of Rs 10 each fully paid-up)
80,00,000
12% Pref. share capital (Shares of Rs 100 each fully paid up)
20,00,000
Reserves and surplus
40,00,000
10% debentures
40,00,000
GMTESTSERIES.COM
Current liabilities
Goodwill
Fixed tangible assets
10% trade investments
Current assets
20,00,000
8,00,000
1,20,00,000
20,00,000
52,00,000
Additional Information:
(i) Profit after tax @ 40%.
2019-2020:
Rs 24,00,000, 2020-2021:
Rs 36,00,000, 2021-
22:
Rs 30,00,000
(ii) Trade investments are to be valued at 150% of face value (i.e. Rs 16,00,000)
(iii) 60% debentures are to be redeemed prior to valuation of shares.
(iv) Rate of Income tax-30% with effect from 1st April, 2022.
org
(v) Normal rate of return on net assets for equity shareholders is 10%
(vi) Goodwill is to be valued at 3 years' purchase of super profits.
Required:
1)
Calculate goodwill
ii)
Calculate net asset value of an equity share
Calculate yield based value of an equity share
iv)
Calculate the fair value of an equity share
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