From the following information in respect of Sun Ltd., prepare value added statement and its distribution for the period ended 31 st March, 2016: (in lakh) Gross sales 1,250 Discount allowed 50 Depreciation on plant and

CS Executive · Company Accounts & Auditing Practices · PYQS · December 2016
From the following information in respect of Sun Ltd., prepare value added statement and its distribution for the period ended 31 st March, 2016: (in lakh) Gross sales 1,250 Discount allowed 50 Depreciation on plant and machinery 70 Dividend to equity shareholders 40 Raw material consumed 780 Salary and wages 160 Interest on term loan 60 Retained profit for the year 30 Office expenses 30 Rate of income-tax be assumed @ 30%.

Answer & Explanation:

Sun Ltd. Value Added Statement For the year ended 31 st of March, 2016 Particulars Amount (₹) in lacs Gross Sales 1250 Less: Discount 50 1200 Less: Raw Material 780 Office Expenses 30 810 Value added by Manufacturing & Trading 390 Distribution of Value Added 160 - Employees Salary & Wages - Government Income Tax 30 - Stake holders (Provider of capital) Interest on Term loan 60 Dividend 40 100 - Maintenance and Expansion of Company Depreciation 70 Retained Profit 30 100 Total Value Distributed 390 Working Notes: Calculation of Income Tax Taxable Profit = 1250 - 50 - 70 - 780 - 160 - 60 - 30 = ₹100 lacs Income Tax at 30% = ₹30 lacs

Topics: Company Accounts

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