I have these queries pertaining to the study module of the chapter electricity companies
1)The moon electricity co. had to discard a machine on 1st oct, 2005. On 1st april, the depreciation provision in this respect stood at Rs.150000 against the cost of RS. 250000 as on april 1, 1997. Show the affected accounts for 2005 assuming the machine realised Rs.30000 immediately on being discarded and in the normal course it would have been depreciated fully by 31st march, 2006
2) The D electricty com has to replace 1/4 of a main at a cost of Rs. 180000 and lay an auxillary main for the remaining length at a cost of Rs.260000. The original main had a cost Rs.240000 twenty years ago when cost were one half of what they are now.Old material realised Rs.5000.
3) An electricity co. earned a profit of Rs. 1850000 during 2004-05. The capital base was Rs15000000 after deducting the Electricity board loan of Rs.5000000. Besides the co had a reserve of Rs.1000000 invested in 5% government securities. HOw much profit would be at disposal of comanies??
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