Superior Trading Co. Ltd. Financial Analysis

Study Notes

Superior Trading Co. Ltd. Financial Statements

Financial statements are for the year ending March 31, 2018
Company has 60,000 equity shares fully paid at Rs. 10 each
As of April 1, 2017, the company had a stock of Rs. 14,70,000 and a surplus account of Rs. 70,000
Expenses for the year include:
- Productive wages: Rs. 3,00,000
- Salaries: Rs. 45,000
- Rent: Rs. 29,700
- General expenses: Rs. 1,02,300
Company paid a dividend of Rs. 54,000 for the previous year
Loan to managing director: Rs. 19,500
Bad debts: Rs. 9,300
The company has plant and machinery worth Rs. 1,74,000
As of March 31, 2018, the company has a stock of Rs. 4,92,000
Machinery is to be depreciated at 10% per annum
A 5% reserve is to be made on debtors for doubtful debts
A 2% discount is to be provided on creditors
Rent of Rs. 2,700 was due on March 31, 2018
Six months' insurance was unexpired at Rs. 4,500 per annum
An income tax provision of Rs. 27,336 is to be made
The board recommends a dividend of 5% per annum
A provision for corporate dividend tax (CDT) at the applicable rate is to be made
5% of net profit is to be transferred to general reserve

Tandon's Investment Account

Tandon invested in shares of Bright Ltd.
On April 1, 2017, Tandon bought 20,000 shares at Rs. 1 each, paying a total of Rs. 30,000
On May 15, 2017, Tandon sold 4,000 shares for Rs. 7,600
On June 15, 2017, Bright Ltd. announced a bonus share issue of 1 fully paid share for every 4 shares held
Members had the right to apply for 1 bonus share for every 5 shares held on June 1, 2017
The price of the bonus shares was Rs. 1.50 each, with 75 paise payable by July 15, 2017, and 75 paise payable by September 15, 2017
These bonus shares do not qualify for dividends in the year ending December 31, 2017
On September 30, 2017, Tandon received proceeds from selling remaining rights to shares at 40 paise each
Tandon paid the applicable sums when due for the bonus shares
On March 15, 2018, Tandon received a 15% dividend from Bright Ltd. for the year ending December 31, 2017
On March 30, 2018, Tandon sold 10,000 shares for Rs. 14,000
Tandon's investment account is to be prepared using the average cost basis, ignoring expenses and taxes

Consequential Loss Claim Calculation

Not enough information is given to provide a calculation.
The document only states the date of the fire: September 1st
Information on the cause, type, and extent of the loss is not provided.

Description

This quiz focuses on the financial statements of Superior Trading Co. Ltd. for the year ending March 31, 2018. It covers topics such as equity shares, expenses, dividends, assets, and provisions. Test your knowledge on financial analysis and accounting practices relevant to this company.