original cost of fixed assets rs 48 00 000 contributions by consumers for acquisitio 609534

Model: Composition of clear profit From the following details of an electric supply company, maintaining accounts under double account system, calculate the following:(a) capital base; (b) reasonable return; (c) clear profit and (d) amounts available for dividends and contribution to tariff and dividend control reserve and consumer’s rebate reserve.

Original cost of fixed assets: Rs.48,00,000; contributions by consumers for acquisition of such fixed assets: Rs.2,40,000; cost of intangibles: Rs.1,60,000; contingency reserve investments: Rs.1,20,000; stores: opening Rs.1,00,000 and closing Rs.1,40,000; cash and bank balances: opening Rs.1,20,000 and closing Rs.80,000.

Depreciation up to the beginning of the year: Rs.8,70,000; intangibles written off up to the beginning of the year; Rs.70,000; security deposit of customers held in cash: Rs.30,000; Tariffs and dividend control reserve at the beginning of the year: Rs.1,80,000; Development reserve as the beginning of the year: Rs.2,60,000; amount carried forward for distribution to consumers: Rs.40,000; loan from state electricity board: Rs.1,20,000. There is no addition to plant and machinery. Transfer to contingency reserve was Rs.14,000and assume RBI rate as 8%.