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3.14 Management Accounting (Section B)—ISC XII

3. Dr. PLANT ACCOUNT Cr.

Particulars ` Particulars `
To Balance b/d 80,000 By Depreciation A/c 5,000
To Bank A/c (Balancing Figure: Purchase) 25,000 By Balance c/d 1,00,000
1,05,000 1,05,000

Illustration 9.
Calculate Operating Profit before Working Capital Changes from the following Balance
Sheet and information of Grand Marketing Ltd. as at 31st March, 2019:

Particulars Note No. 31st March, 31st March,
2019 (`) 2018 (`)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 1 20,00,000 11,50,000
(b) Reserves and Surplus 2 4,90,000 2,05,000
2. Current Liabilities
(a) Trade Payables 1,20,000 1,10,000
(b) Other Current Liabilities 3 15,000 20,000
(c) Short-term Provisions 4 2,50,000 2,00,000
Total 28,75,000 16,85,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets—Tangible 17,50,000 8,85,000
(b) Non-Current Investments 5,00,000 5,00,000
2. Current Assets 6,25,000 3,00,000
Total 28,75,000 16,85,000

Notes to Accounts
Particulars 31st March, 31st March,
2019 (`) 2018 (`)
1. Share Capital
Equity Share Capital 10,00,000 7,50,000
Preference Share Capital 10,00,000 4,00,000
20,00,000 11,50,000
2. Reserves and Surplus
General Reserve 1,50,000 75,000
Investments Fluctuation Reserve 1,00,000 40,000
Surplus, i.e., Balance in Statement of Profit and Loss 2,40,000 90,000
4,90,000 2,05,000
3. Other Current Liabilities
Outstanding Expenses 15,000 20,000
4. Short-term Provisions
Provision for Tax 2,50,000 2,00,000

Note: Proposed Dividend for the years ended 31st March, 2019 and 2018 were ` 1,50,000 and ` 1,00,000
respectively.