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BRILLIANT’S Long Term Financing and Valuation of Goodwill & Shares 201

Illustration 3.1.6
The Balance Sheet of Platinum Ltd. as at 31st March, 2016 is as under:
31 ‘mM© 2016 H$mo ßbo{Q>Z‘ {b{‘Q>oS> H$s ~¡b|g erQ> {ZåZ{b{IV h¡…
Balance Sheet of Platinum Ltd. as at 31 March, 2016
31 ‘mM© 2016 H$mo ßbo{Q>Z‘ {b{‘Q>oS> H$s ~¡b|g erQ>

Particulars Note No. Amount
({ddaU) (ZmoQ> g§.) (am{e)
(`)

I. EQUITY AND LIABILITIES / Bp³dQ>r Am¡a bm¶{~{bQ>rO
(1) Shareholder's Funds / eo¶a hmoëS>g© H$m ’§$S>…
(a) Share Capital - 40,000 Equity Shares of ` 10 each
eo¶a H¡${nQ>b - 40,000, ` 10 H$m Bp³dQ>r eo¶a 4,00,000

(b) Reserves and Surplus / [aOd© Am¡a gaßbg:
General Reserve / OZab [aOd© 90,000
Profit and Loss Account / àm°{’$Q> Am¡a bm°g AH$mC§Q> 20,000
(2) Share Application Money Pending Allotment:
eo¶a EpßbHo$eZ ‘Zr n|qS>J Abm°Q>‘|Q –
(3) Non-current Liabilities / / Zm°Z-H$a§Q> bm¶{~{bQ>rO:
(a) Long-term Borrowings - 6% Debentures
bm§J-Q>‘© ~m°amoB§½g - 6% {S>~|Mg© 1,00,000
(4) Current Liabilities: / H$a§Q> bm¶{~{bQ>rO

(a) Other Current Liabilities / Aݶ H$a§Q> bm¶{~{bQ>rO 1,30,000
TOTAL/ Hw$b 7,40,000
II. ASSETS / AgoQ²>g
(1) Non-current Assets / Zm°Z-H$a§Q> AgoQ²>g:
(a) Fixed Assets / {’$³ñS> AgoQ²>g
(i) Tangible Assets / Q>¢{O~b AgoQ²>g 5,00,000
(ii) Intangible Assets - Goodwill / B§Q>¢{O~b AgoQ²>g-JwS>{db 40,000

(2) Current Assets / H$a§Q> AgoQ²>g:
(a) Other Current Assets / Aݶ H$a§Q> AgoQ²>g 2,00,000
TOTAL / Hw$b 7,40,000
On 31 March, 2016 the tangible fixed assets were independently valued at ` 5,50,000 and the
goodwill at ` 50,000. The net profits after tax for the three years were: