Practical Questions-Set 1
[Link] the following particulars,prepare a summarised Balance sheet in detail as at 31st
March,2018
Fixed Assets to Networth=0.8:1
Current Ratio=3:1
Fixed asset= Rs 800000
Reserve included in proprietor's fund=25%
Acid Test Ratio=3:2
Cash and Bank=Rs 15000
[Link] the following information, prepare a summarised Balance sheet of X [Link] on 31st
march,2018 assuming that capital is composed of equity shares of Rs 10 each
Liquid Ratio=1.5
Current Ratio=2.5
Asset (Fixed) to Proprietorship Fund Ratio=0.75
Working capital=Rs 120000
Reserve & surplus=Rs 60000
short term loan=Rs 20000
Q.3
The Capital of B & Co. is as follows:
Rs.
10 % Preference Share Capital (Rs. 10) 1200000
Equity Shares of Rs. 10 each 3200000
Share capital 4400000
Profit after tax at 50% 1080000
Depreciation 120000
Equity dividend paid 20%
Market price per Equity share Rs. 90
Calculate: a) Earning per Share b) Dividend Payout Ratio
Q.4
The following information is obtained from the books of X Ltd
Particular 2017(₹) 2016(₹)
Turnover 3000000 2400000
Opening inventory 350000 450000
Purchases 1500000 1100000
Ending Inventory 400000 350000
( a) Compute for each year the inventory turnover ratio
(b) Analyse the results obtained in (a)
( c) What conclusion can be drawn from the above analysis?
[Link] information given below relates to ABC Ltd for the year ended 31.12.2017
Practical Questions-Set 1
(i) opening inventories ₹ 60000,closing inventories ₹ 75000, sales ₹ 1000000
(ii) Rate of inventories turnover: 12 times in the year
You are asked to:
(i) Calculate COGS
(ii) Calculate gross profit ratio
(iii) Give reason for changes in gross profit ratio
(iv) What are the points to be remembered while calculating gross profit ratio?
(v) State what action should be taken for an unexpected reduction in the gross profit ratio?
Q.6
PQR Ltd has the following data:
2017(₹) 2016(₹)
Monthly average of debtors (net) 820000 780000
net credit turnover 6000000 5000000
Terms of sales:- 10% discount can be availed of it payment is made within 60 days
( a) Compute for the year
(1) The debtors turnover ratio
(2) The number of days turnover in debtors
( b) Analyse the results obtained in (a)
( c) What conclusion can be drawn from the above analysis?
Q7. The following are the current assets and current liabilities of X Ltd as on 31.3.2018
Current Assets Amt ( ₹) Current liabilities Amt( ₹)
Inventories 500000 Creditors 119200
Debtors 200000 Bank overdraft 439200
Investment(short term) 60000 Provision for taxation 88000
Proposed dividend 53600
( a) You are required to calculate current ratio and liquid ratio
( b) why liquidity is desirable? Write a brief comment on the liquidity of X co Ltd
( c) To what extent it is true to say that a company should keep an especially close watch on the current and
liquid ratio?
Q8.
Gross profit Rs. 80,000
Gross profit to cost of goods sold ratio 1/3
Stock turnover ratio 6 times
Opening stock Rs. 36,000
Debtor collection period (year of 360 days) 72 days
Creditors payment period 90 days
Current assets Rs. 1,50,000
Fixed assets turnover ratio (Cost of goods sold/ Fixed assets ) 8 times
Practical Questions-Set 1
Prepare balance sheet with as many details as possible.
Q.9.
Amount(Lakhs
Liabilities Amount(lakhs) Assets )
Equity Share Capital 250 Fixed assets 400
General Reserve 280 Investment 50
P&L a/c (current year) 30 Stock 460
Secured loan-long term 300 Debtors 460
Secured loan-short term 360 Cash in hand 10
[Link]
Creditors 150 (not written off) 20
Other liabilities 30
TOTAL 1400 1400
Additional information:
i. From Profit and Loss Account Rs 90 lakhs was transferred to general reserve during the
year
ii. Interest cost amounted to Rs 120 lakhs
[Link] @ 40%
Calculate Interest Coverage Ratio
Q10.
Using the following data, complete the Balance Sheet given below:
Gross Profits Rs. 54,000
Shareholders’ Funds Rs. 6,00,000
Gross Profit margin 20%
Credit sales to Total sales 80%
Total Assets turnover 0.3 times
Inventory turnover 4 times
Average collection period (a 360 days year) 20 days
Current ratio 1.8
Long-term Debt to Equity 40%
Practical Questions-Set 1
Q 11
From the following information prepared a summarised Balance sheet of Amar, a sole proprietor
as at 31st March ,2018:
Inventories velocity 6
Fixed assets to turnover ratio 4
Capital turnover ratio 2
Gross profit 20%
Debtors collection period 2 months
Creditors payment period 73 days
The gross profit 60000
Closing inventories was ₹ 5000 in excess of opening inventories
Ans.
Balance sheet of Amar as on 31st March ,2018
Liabilities Amount Assets Amount
Capital Fixed assets
Creditors Stock
Debtors
OCA (bal fig.)
Total 199000 Total 199000
Q 12
Using the following data,complete the Balance sheet of X Limited as at 31.3.2000
Gross Profit 25% of sales
Gross profit=₹ 1,20,000
Shareholders' equity=₹ 20000
Credit sales to total sales=80%
Total turnover to total assets=4times
Cost of sales to Inventory =10 times
Average collection period=5 days,assume 365 days in a year
Long term debt=₹
Current ratio=1.5
Sundry Creditors=₹ 60000
Ans:-
Liabilities Amt (₹) Assets Amt (₹)
Sundry Creditors Cash
Long term debt(bal fig) Sundry Debtors
Share capital Inventory
Fixed Assets
Total 210000 Total 210000
Practical Questions-Set 1
Q.13
With the help of the following information complete the Balance Sheet of MNOP Ltd.:
Equity share capital Rs. 1,00,000
The relevant ratios of the company are as follows:
Current debt to total debt 0.4
Total debt to owner’s equity 0.6
Fixed assets to owner’s equity 0.6
Total assets turnover 2
Inventory turnover (sales / Inventory) 8
Ans:
Liabilities Amt Assets Liabilities
Equity Fixed assets
Current debt Inventory
LTD Cash (bal fig)
Total 160000 Total 160000
