Question

Illustration 19:
The following is the Balance Sheet of Jayant Ltd. as on 31-3-2012
Liabilities
Rs.
Assets
Rs.
105. Preference
Goodwill
1.50.000
Share Capital
6.00.000 Fixed assets
18.75.000
Equity shares of Rs. 10
Investments
3,00.000
each fully paid up
15.00.000 Current Assets
18.00.000
Reserves and Surplus 9.00.000 Preliminary expenses
75.000
Current Liabilities
12,00.000
42.00.000
42.00.000
Additional Informations is as under :
(1) The rate of normal expected return in this type of business is considered
159.
(2) The average profits of the company (after tax at 50%) for the last
three years amount Rs. 6.45.000.
(3) For the purpose of valuation of shares, Goodwill of the business of
the company is to be valued at 4 years purchase of its super profits.
(4) Al present fixed assets are worth 20% above their book-value.
(5) of the investment, 60% is non-trading and the balance is trading
All trade investments are to be valued at 25% above their book value.
A uniform rate of dividend is earned at 15% p.a. on both the types
of investments, which is taxable.
From the above particulars ascertain the Fair Value of the Equity
Share Sau.. Uni S.Y. April. 2001: South Guj. Uni., S.Y., April, 2010)​

Answer 1

Answer:

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