Q 1:

The following is the Profit & Loss a/c of Mudra Ltd for the year ended 31-3-13:
To Administrative, Selling &
By Balance b/d
572350.00
Distribution exp
822542.00 By Balance from Trading
4025365.00
To Donation to Charitable
a/c
232560.00
Funds
25500.00 By Subsidy received Govt
15643.00
To Directors Fee
66750.00 By Interest on investment
722.00
To interest on Debentures
31240.00 By Transfer Fee
25000.00
To Compensation for Breach
By Profit on sale of
of contract
42530.00 Machine
To Managerial Remuneration
285350.00
(WDV Rs 30000)
To Depreciation of Fixed
522543.00
Assets
1242500.00
To Provision for Taxation
400000.00
To General Reserve
To Investment Revaluation
12500.00
Reserve
1420185.00
To Balance C/d
4871640.00
4871640.00
Additional Information:
1- Original Cost of machine sold was Rs 40000.00
2- Depreciaiton on fixed assets as per companies act was Rs 575345.
You are required to comment on the managerial remuneration in the following situations:
a- There is only 1 whole time director
b- There are 2 whole time directors
c- There are two whole time directors, one part time & a manager.

Q 2: Calculate managerial remuneration:

Profit before tax & managerial remuneration but after
870410.00
depreciation
& tax provision for repairs
310000.00
Depreciation (as per books)
25000.00
Provision for Repairs
260000.00
Depreciation (as per companies act)
15000.00
Repair Exp
Case 1: If only 1 whole time director.
Case 2: If 2 whole time directors.
Case 3: 2 whole time directors, 1 part time directors & 1 manager.

Q 3: Following details are extracted from Profit & Loss account:

Remuneration to :
Managing Director
Whole time Director
Provision for Bonus (Including to director Rs 5000)
Provision for Gratuity (Including to director Rs 6000)
Provision for Doubtful Debts
Profit on sale of Building (includes short term capital gain Rs
120000)

Financial Statements of Companies

75000.00
60000.00
550000.00
50000.00
30000.00
150000.00
7000.00
1

Loss on sale of machine (WDV Rs 150000)

Donation to charitable institutions
Contribution to research association approved
Tax Provision
Net Profit as per Profit & Loss Account
Calculate profit available for Managerial Remuneration?

50000.00
400000.00
800000.00
1600000.00

Q 4:
From the following particulars furnished by Pioneer Ltd. Prepare the Balance Sheet as at 31st
March, 2102 and Statement of Profit & Loss for the year ended on that date as required by Parts 1st
& 2nd of New Schedule VI of the Companies Act.
The Details have been properly grouped in the trial Balance itself to avoid further
working.
Particulars
Working Debit
Credit
Equity Capital (Face Value of Rs.100)
4,000
Money received against Share Warrants
1,000
Share Application money pending allotment
500
General Reserve
400
Profit & Loss Account Opening balance 700- Proposed
200
600
Dividend 500
4,500
Land & Building
1,800
Plant and Machinery
6,500
200
Other tangible Fixed asset
500
Intangible Fixed Assets
800
Investment in shares & Debenture- Non Current
700
Investment In shares & debenture- Current
400
Loan from State Financial Corporation for Fixed assets
1,200
800
Long term
1,000
12% Mortgage Debentures
1,600
Borrowing for working capital : Short term
400
Inventory : Finished Goods 900 + WIP 100 + Raw Material 50
600
200
150
Sundry Debtors
150
Cash Balance
300
Cash at Bank
100
Other current assets
200
100
Sundry Creditors
200
Share Application money refundable
700
500
Other current liability
700
Provision for Taxation
400
Proposed Dividend
9,000
Provision for employee retirement benefit
900
Other long term liability (Deferred credit for equipment)
9,300
(-) 600
Purchases of Raw material
1,000
+ Opening Stock of raw material
300
(-)
700
(-) Closing Stock of Raw material
1,000
Closing Stock of WIP & Finished Goods
2,000
(-) Opening Stock Of WIP & Finished Goods
200
Purchase of Finished Goods
100
Salaries and Wages
200
Power and electricity expenses
750

Financial Statements of Companies

Repairs & Maintenance

Commission on sales
Other expenses
Depreciation

250

Interest on Debenture
Interest on Other borrowings
Sakes (net)
Other income: Interest, Dividend, Profit on sale of
investment
Exception item: Profit on sale of Fixed assets
Deferred tax assets
(-) Deferred tax liability
Income Tax
Deferred tax
Loans and advanced for Fixed Assets
Advances to Customer

96
124

730

220
15,000
250
100

350
(-) 200

150
750
75
300
125
26,250

Financial Statements of Companies

26,250