Prepare a Value Added Statement for the year ended on 31 st March, 2019 and also Reconciliation of Total value added with Profit before Taxes, from the Profit and Loss Statement of Fungi Ltd.: Particulars Amount (₹ in '0
CS Executive · Corporate and Management Accounting · PYQS · June 2019
Prepare a Value Added Statement for the year ended on 31 st March, 2019 and also Reconciliation of Total value added with Profit before Taxes, from the Profit and Loss Statement of Fungi Ltd.: Particulars Amount (₹ in '000) Income : Sales 24,400 Other Income 508 24,908 Expenditure : Operating cost 21,250 GST 1,110 Interest on Bank Overdraft 75 Interest on 9% Debentures 1,200 23,635 Profit before Depreciation 1,273 Depreciation 405 Profit before Tax 868 Provision for tax 320 Profit after Tax 548 Proposed dividend 48 Retained profit 500 The following additional information is provided to you: (1) Sales represent net sales after adjusting discounts and returns. (2) Operating cost includes ₹ 82,50,000 as wages, salaries and other benefits to the employees. (3) Bank overdraft is for the temporary period only.
Answer & Explanation:
Value added Statement of Fungi Ltd. Rs. in '000 Particulars Rs. Rs. Sales 24,400 Less: Operating cost - cost of brought in material and services (₹ 21,250 - 8,250) 13,000 GST 1,110 Interest on bank overdraft 75 (14,185) Value added by trading and manufacturing activities 10,215 Add: other income 508 Total value added 10,723 Application of value added Particulars Amount (Rs. in '000) % To pay employees: Wages, salaries and other benefits 8,250 76.94% To pay Government: Corporate tax 320 2.98% To pay provider of capital: Interest on 9% debentures 1200 Proposed dividend 48 1248 11.64% To provide for maintenance and expansion of the company: Depreciation 405 Retained profit 500 905 8.44% 10,723 100% Reconciliation Particulars Amount (Rs. in '000) Profit before tax 868 Add: Depreciation 405 Add: Wages, salaries and other benefits to employees 8,250 Add: Debenture interest 1,200 10,723
Topics: Management Accounting
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