Time: 3Hours Marks: 100
N.B:
1. Questions No. 1 is compulsory and carries 20 marks.
2. Attempt any five from the rest questions,each carrying 16 marks
from remaining questions.
3. Working notes should form part of your answer.
4.Proper presentation and neatness is essential.
5. Use of simple calculator is allowed.
Q.1.
ABC Ltd. provides you following Balance-sheets as on 31st March: (20)
Liabilities | 2006 Rs. | 2007 Rs. | Assets | 2006 Rs. | 2007Rs. |
Equity Share Capital | 15,00,000 | 24,00,000 | Fixed Assets | 30,00,000 | 31,00,000 |
10% Preference Share Capital | 20,00,000 | 15,00,000 | Investments | 22,60,000 | 28,00,000 |
Profit & Loss A/c | 20,08,000 | 20,58,000 | Inventory | 9,20,000 | 8,00,000 |
15% Debentures | 3,00,000 | 10,00,000 | Debtors | 12,00,000 | 11,00,000 |
Bank Loan (Long Term) | 4,40,000 | - | Bills Receivable | 5,75,000 | 6,00,00 |
Creditors | 12,48,000 | 8,60,000 | Cash | 2,21,000 | 5,48,000 |
Provision for Tax | 4,80,000 | 7,30,000 | Proposed Dividend | 2,00,000 | 4,00,000 |
Total | 81,76,000 | 89,48,000 | Total | 81,76,000 | 89,48,000 |
The following information is given for the year ended on 31st March, 2007:
- 10% Preference shares were redeemed out of fresh issue of Equity shares on 1st April, 2006.
- Partly paid Equity shares were converted into a fully paid shares by utilizing Rs. 4,00,000 from Profit and Loss A/c during the year.
- Interim dividend of Rs. 1,00,000 was paid.
- Depreciation was charged during the year Rs. 2,00,000.
- Fixed Assets were revalued in excess of book value and amount was credited to Profit and Loss A/c.
- Dividend on Equity shares paid for the year 2005-08 Rs. 2,00,000.
- Tax paid Rs. 5,50,000.
Prepare fund flow statement and statement showing changes in working capital in detail for the year ended on 31st March, 2007.
Q.2.
You are required to prepare a statement showing the working capital required to finance the level of activity of 12,000 Units per year from the following information: (16)
1. Raw materials are in stock on an average for 2 months
2. Materials are in process on an average for half a month.
3. Finished goods are in stock on an average for one month.
4. Credit allowed by the suppliers is 1½ months of purchase of raw materials and credit allowed to the customers is 2 ½ months.
5. Lag in payment of wages and overheads is one month.
6. Cash and Bank balance is expected to be 10% of Net working
7. Capital before considering the Cash and Bank balance.
8. Activities are spread evenly through out the year:Cost Per Unit:
Raw Material - Rs. 10
Wages - Rs. 5
Total Cost - Rs. 30
Profit is 20% on selling price.
Q.3.
The following is financial information of ZN Ltd. for 3 years ended on 31st December every year. (16)
Particulars 2005 | Rs. 2006 | Rs. 2007 | Rs. |
Share Capital | 1,50,000 | 1,80,000 | 1,90,000 |
Gross profit | 3,50,000 | 3,50,000 | 4,00,000 |
Current liabilities | 40,000 | ? | |
Fixed Assets | 2,40,000 | 2,50,000 | 2,35,00 |
Long Term Loan | 1,00,000 | ? | 1,20,000 |
Cost of Goods Sold | ? | 4,00,000 | 3,00,00 |
Working Capital | 60,000 | 4,50,000 | 1,40,000 |
Net Worth | 2,00,000 | 2,20,000 | 2,55,000 |
Current Assets | ? | 1,20,000 | 2,00,000 |
Sales | 5,50,000 | 7,50,000 | |
Capital Employed | 3,00,000 | ? | ? |
Reserve and Surplus | ? | 40,000 | 65,000 |
You are required to prepare vertical Trend Financial Statement taking 2005 as the Base.
Q.4.
Complete the following Balance-sheet from the information given below: (16)
Liabilities | Rs. | Assets | Rs. | |
Equity Share Capital (Rs.100 each) | ? | Fixed Assets | ? | |
Reserve and Surplus | ? | Current Assets | ||
20% Debentures | 5,00,000 | Stock | ? | |
Current Liabilities | Debtors | ? | ||
Sundry Creditors | ? | Bank / Cash Balance | ? | |
Provision for Tax,(Current Year) | ? | |||
? | ? |
Following information is available:
1. Gross profit ratio is 25% and which is Rs. 12,00,000.
2. Operating expenses (including Debenture interest) Rs. 8,00,000.
3. Rate of Income Tax is 50%.
4. Purchases and Sales are on credit basis.
5. Debtors Turnover Ratio (Sales / Debtors) = 12 times.
6. Creditors Turnover Ratio (Cost of sales / creditors) = 12 times
7. Earning per share Rs. 20
8. Stock Turnover Ratio = 10 times
9. Debt Equity Ratio 0.25 : 1
10.Current Ratio 2 : 1.
Q.5.
Prepare a Comparative Revenue Statement in Vertical Form from the following details:(16)
Nilkamal Ltd. | |||||
---|---|---|---|---|---|
Trading, Profit and Loss Account for the year ended 31st March | |||||
Particulars | 2006 Rs. | 2007Rs. | Particulars | 2006 Rs. | 2007 Rs. |
To Opening Stock | 2,25,000 | 3,00,000 | By Sales | 45,00,000 | 60,00,000 |
To Purchases | 22,50,000 | 32,10,000 | By Closing Stock | 3,00,000 | 3,60,000 |
To interest on Debenture | 1,50,000 | 1,50,000 | By Dividend | 12,000 | 39,000 |
To Depreciation: | By Profit on Sale of Machinery | 24,000 | - | ||
Furniture | 15,000 | 15,000 | |||
Machinery | 36,000 | 30,000 | |||
To Administrative Expenses | 2,94,000 | 4,41,000 | |||
To Selling Expenses | 4,56,000 | 7,53,000 | |||
To Carriage Outward | 75,000 | 3,15,000 | |||
To Loss by Fire | - | 15,000 | |||
To Wages | 1,95,000 | 3,00,000 | |||
To Provision for Tax | 5,70,000 | 4,35,000 | |||
To Net Profit | 5,70,000 | 4,35,000 | |||
48,36,000 | 63,99,000 | 48,36,000 | 63,99,000 |
Q.6.
Telestar Ltd. gives you the following Balance - Sheets for the year ended 31 st March, 2006 and 2007. Prepare a Cash Flow Statement for the year ended 31st March, 2007 as per As - 3 by indirect method. (16)
Liabilities | 31-3-06 Rs. | 31-3-07Rs. | Assets | 31-3-06Rs. | 31-3-07Rs. |
Equity Share Capital | 1,20,000 | 1,20,000 | Land | 2,10,000 | 2,70,000 |
5% Preference Share Capital | 90,000 | 60,000 | Building | 2,85,000 | 2,70,000 |
General Reserve | 30,000 | 42,330 | Stock | 27,000 | 36,300 |
Profit and Loss Account | 15,240 | 28,080 | Debtors | 40,440 | 38,460 |
Provision for Tax | 17,000 | 8,000 | Prepaid Expenses | 25,880 | 17,000 |
Creditors | 3,37,920 | 3,81,990 | Bank Balance | 15,840 | 3,240 |
Misc Expenditure | 6,000 | 5,400 | |||
Total | 6,10,160 | 6,40,400 | Total | 6,10,160 | 6,40,400 |
Other information for the year ended 31st March,2007:
(1) The company has paid Interim dividend of 5 %on Equity shares.
(2) Preference shares were redeemed during the year at 10% premium.
(3) Income Tax paid during the year Rs. 15,000.
Q.7.
From the following information calculate: (16)
(a) Return on Capital Employed.
(b) Debtors turn over ratio (in Times)
(c) Stock - working capital ratio
(d) Current ratio
(e) Proprietory ratio (on the basis.of Total Fund)
Some of relevant balances as on 31st March, 2007 are given below:
Particulars | Amount(Rs.) |
Equity share capital (of Rs. 10 each) | 2,00,000 |
6% Preference share capital | 1,00,000 |
8% Debentures | 1,50,000 |
Debtors | 18,000 |
Creditors | 15,000 |
Cash in hand | 20,000 |
Bills receivable | 12,000 |
Bank Overdraft | 8,000 |
Reserves and Surplus | 43,000 |
Closing Stock | 32,500 |
Provision for taxation | 35,000 |
Proposed dividends | 10,000 |
Other information for the year 2006-07:
Particulars | Amount (Rs.) |
Sales | 10,00,000 |
Cost of Sales | 7,50,000 |
Net profit before Tax | 1,00,000 |
Q.8.
The following information regarding Maruti car Ltd. for the year ended 31st March.2007 is given to you. (16)
particulars | Rs. |
Sales | 75,00,000 |
Purchases | 50,00,000 |
Opening Stock (01/04/2006) | 5,00,000 |
Closing Stock (31/03/2007) | 7,50,000 |
Return Inward | 75,000 |
Carriage Outward | 57,000 |
Carriage Inward | 50,000 |
Return Outward | 50,000 |
Salesmen Salary | 75,000 |
Advertising and Publicity | 2,52,000 |
Salesmen Travelling Allowance | 7,500 |
Office Salary | 4,00,000 |
Computer Repairs and Maintenance | 84,000 |
Rent, Rates, Taxes | 4000 |
Printing and Stationery | 400 |
Bad Debts | 75,750 |
Purchase of Computer | 40,000 |
Dividend on Shares (Cr) | 10,000 |
Staff Welfare Expenses | 44,000 |
Interest (Dr.) | 50,000 |
Loss on Sales of Shares | 1,25,000 |
Rearrange above information in Vertical Form suitable for analysis.
Q.9.
(a) From the following information calculate the amount of Creditors 0pening Stock and Closing Stock: (5)
Cost of Sales | Rs.3,25,000 |
Gross Profit Ratio | 35% |
Stock Turn Over ratio | 2.5 |
Creditors Turnover Ratio (On Purchaes) | 8 |
Opening Stock is more by Rs. 6,000 than Closing Stock.
(b) Working Capital is Rs. 3,00,000.Quick Ratio is 1.25 : 1.and Current Ratio is 2:1.The Bank Overdraft is Rs.20,000.Non quick assets includes closing stock only.Calculate Closing Stock. (4)
(c) Write short notes on : (any two) (6)
i) Fund Flow Statement and Cash Flow Statement.
ii) Limitations of Ratio Analysis.
iii) Trend Analysis.
iv) MIS Reporting.