The Balance Sheet of Ganesh Ltd. as on 31-3-2009 was as under:
|
Liabilities |
Assets |
||
| 2,000 Equity share of 100 each
General Reserve Profit & Loss A/c Creditors Provision for Taxation Provident Fund |
2,00,000 50,000 25,000 45,000 20,000 17,500 |
Land and Building
Machinery Investment at Cost (Market Value 37,500) Debtors Stock Cash & Bank |
1,25,000 75,000 45,000
50,000 37,500 25,000 |
|
Total |
3,57,500 |
Total |
3,57,500 |
Additional Information:
i) Land and Building & Machinery are valued at 1,37,500 and 55,000 respectively.
ii) Of the total debts 2,500 are bad.
iii) Goodwill is to be valued at 25,500.
iv) The normal dividend declared and paid by such type of companies is 15% on the paid-up capital.
v) The average rate of dividend, declared and paid up by the company is 18% on its paid-up capital.
Calculate the fair value of an equity share of the company.
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