Model: Capital employed—Computation of The following is the balance sheet of Vasanth Ltd. as at 31 March 2010:
|
Liabilities |
Assets |
||
|
Equity shares of ? 10 Each Fully Paid Up |
10,00,000 |
Goodwill |
1,00,000 |
|
General Reserve |
Buildings (Cost): 30,00,000 |
||
|
Profit and Loss Account |
3,00,000 |
Less: Depreciation 30,000 |
2,70,000 |
|
15% Debentures |
2,00,000 |
Plant & Machinery (Cost): 6,00,000 |
|
|
Creditors |
2,00,000 |
Less: Depreciation: 1 00 000 |
5,00,000 |
|
Workmen”s Profit Sharing Reserve |
60,000 |
Furniture (Cost): 70,000 |
|
|
Workmen”s Compensation Reserve |
50,000 |
Less: Depreciation: 20.000 |
50,000 |
|
30,000 |
Trade Investments |
||
|
(Cost: ? 2,00,000) |
1,75,000 |
||
|
Stock |
2,80,000 |
||
|
Debtors: 40,00,000 |
|||
|
Less: Prov. for Bad Debts: 50,000 |
3,50,000 |
||
|
Cash at Bank |
90,000 |
||
|
Preliminary Expense |
25,000 |
||
|
18,40,000 |
18,40,000 |
Buildings are now worth Rs.5,00,000, and plant and machinery is worth Rs.4,75,000. You are required to compute the value of capital employed.