Model: Repairs & renewals The following particulars are available from the books of Modern Electricity Company:
|
Rs. |
|
|
Balance of Repairs and Renewals Reserve |
|
|
Account as on 1 April 2009 |
2,10,000 |
|
Actual Repairs Incurred During the Year Ended |
|
|
31 March 2010 |
90,000 |
|
31 March 2011 |
60,000 |
The Company transfers annually a sum of Rs.80,000 to the “repairs and renewals” reserve account Draw up the account for the years the years 2009–10 and 2010–11.
- Provide depreciation on: building 21/2%, machinery 71/2%, mains 5%; transformers, etc. 10%; Meters 15%
- A call of Rs.5 per share was payable on 30 June 2010 and arrears are subject to interest at 5% per annum
You are required to prepare (a) revenue A/c; (b) capital A/c for the year ended 31 December 2010 and (c) the balance sheet as on that date.