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.

  1. Provide depreciation on: building 21/2%, machinery 71/2%, mains 5%; transformers, etc. 10%; Meters 15%
  2. 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.