From the following balance sheet of M.P. Products Ltd., find out the values of equity shares and preference shares:
Balance Sheet of M.P. Products Ltd.
|
Liabilities |
Rs |
Assets |
Rs |
|
20,000 equity shares of |
2,00,000 |
Goodwill |
25,000 |
|
Rs.10 each |
Machinery |
1,60,000 |
|
|
8% 1,000 preference shares |
Furniture |
5,000 |
|
|
of Rs.100 each |
1,00,000 |
Stock |
80,000 |
|
Reserves |
30,000 |
Debtors |
1,50,000 |
|
Profit and loss account |
10,000 |
Cash |
2,000 |
|
Sundry creditors |
60,000 |
Preliminary expenses |
3,000 |
|
Other liabilities |
12,000 |
||
|
Overdraft |
5,000 |
||
|
Proposed preference dividend |
8,000 |
||
|
4,25,000 |
4,25,000 |
Goodwill is valued at Rs.15,000. Stock is overvalued by Rs.10,000. Machinery is undervalued by Rs.15,000.