IVashant Limited has been in existence for two years.

The most important facts

from its published accounts are given below.
Balance Sheet
1st Year 2nd Year
Rs. Rs.
Equity Share Capital : Shares of Rs. 100 each 1,00,000 1,00,000
Reserves 10,000 20,000
Profit and Loss Account 14,000 2,000
Loans on Mortgage 1,10,000 80,000
—
Bank Overdraft 20,000
Provision for Taxation 34,000 13,000
Creditors 30,000 90,000
Proposed Dividend 10,000 15,000
3,08,000 3,40,000
Fixed Assets Less Depreciation 2,08,000 1,98,000
Stock-in-trade 30,000 60,000
Debtors 40,000 80,000
Cash and Bank Balances 30,000 2,000
3,08,000■ 3,40,000

Profit and Loss Account for Two Years

Year I Year II Year I Year II
Rs. Rs. Rs. Rs.
To Interest on By Balance b/d _ 14,000
Mortgage " Profit for the
Loan 2,400 4,800 Year after
v
' Directors' normal
Remuneration 10,000 30,000 running
Provision for cost and 80,400 60,800
Taxation 34,000 13,000 depreciation
Dividend 10,000 15,000
Transfer to
Reserve 10,000 10,000
Balance c/d 14,000 2,000
80,400 74.800 80,400 74,800
You are informed that the total sales amounted to Rs. 6,00,000 in the first year and
Rs. 5.00,000 i n the second year.