Calculate, the managerial remuneration from the following particulars of Anklt and Company Ltd. due to managing director of the company at the rate of 5% of the profits. Also determine the excess remuneration paid, if any : Net Profit 2,00,000 Net profit is calculated after considering the following : (i) Depreciation (ii) Tax provision (iii) Directors' fees (iv) Bonus (v) Profit on sale of fixed assets (original cost $20,000 written down value $11,000). (vi) Provision for doubtful debts (vii) Scientific research expenditure (for setting up new machinery) (viii) Managing director's remuneration paid Other information : 40,000 3,20,000 8,000 15,000 15,500 9,000 20,000 30,000 (a) Depreciation allowable according to the Companies Act, 2013 (b, Bonus liability as per Payment of Bonus Act, 1965 35,000 18,000

Calculate, the managerial remuneration from the following particulars of Anklt and Company Ltd. due to managing director of the company at the rate of 5% of the profits. Also determine the excess remuneration paid, if any : Net Profit 2,00,000 Net profit is calculated after considering the following : (i) Depreciation (ii) Tax provision (iii) Directors' fees (iv) Bonus (v) Profit on sale of fixed assets (original cost $20,000 written down value $11,000). (vi) Provision for doubtful debts (vii) Scientific research expenditure (for setting up new machinery) (viii) Managing director's remuneration paid Other information : 40,000 3,20,000 8,000 15,000 15,500 9,000 20,000 30,000 (a) Depreciation allowable according to the Companies Act, 2013 (b, Bonus liability as per Payment of Bonus Act, 1965 35,000 18,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 32BEB

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