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HOME

ASSIGNMENT

XII

ACCOUNTANCY

2019 - 2020

PREFACE

The home assignment , being given to the

students , aims at strengthening the concepts of

each student through reinforcement of topics

covered in class lectures by practicing the

questions given in the assignment.

Some sample papers in each subject have been

given.

The maximum benefit can be gained only if the

student goes through all the topics of fragment

1 thoroughly before attempting the sample

paper. The assignment will not only act as a

reinforcement tool but will also help the

students acquire the tendency of solving the

entire paper in one sitting, just like he/she sits in

an examination for three hours. Hence ,

improving student’s time management skill in

examination.

This assignment will also fetch the student 5

marks in practical. The solutions of all the

question papers given in the home assignment

have to be written on separate A-4 sheets.

For all the subjects , the assignments have to be

submitted in different folders respectively.

Last date to submit the assignment for each

subject 5th

July ’19.

- PRINCIPAL

ASSIGNMENT 1 : 2019-20

TIME:3 Hrs. ACCOUNTANCY : XII MARKS: 80

General Instructions:- i) All questions in this paper are compulsory.

ii) Attempt all parts of a question at one place.

iii) Answers should be followed by clear working notes, wherever required.

1. __________ analysis involves the comparison of different firm’s financial ratios at the

same point of time (1)

2. Time- series (b) Cross-sectional (d) Marginal (e) Quantitative

_______ are especially interested in the average payment period, since it provides

them with a sense of the bill paying patterns of the firm. (1)

(a) Customers (b) Shareholders(c)Lenders and suppliers (d) Borrowers and buyers

3. An analysis in which the firm’s ratio values are compared to these of a key competitor or

group of competitor, primary to identify areas for improvement is called (1)

(a) Time-series analysis (b) Benchmarking (c) Combined analysis

(d) None of these 4. The ___ indicates the percentage of each sale rupee remaining after the firm has paid

for its goods. (1)

(a) Net Profit margin (b) Operating profit margin (c) gross profit margin (d) earning

available to equity shareholders (1)

5. The ___ ratio provides the information critical to the long-run operation of the firm.

(a) Liquidity (b) Activity (c) Solvency (d) Profitability (1)

6. ___ ratios are a measure of the speed with which various account are converted into

sales or cash (1)

(a) Activity (b) Liquidity (c) Debt-equity (d)Profitability

7. If operating cycle of a company is 10 months and expected period of payment of trade

payable is 12 months then it is (1)

8. Current liability (b) Non-current liability (c) Non-current Asset (d) Current Asset GST

payable will come under____ sub-heading in a balance sheet. (1)

(a) Reserve and surplus (b) Other current Liabilities (c) Short-term Provisions

(d) trade payable 9. ____ is one of the most useful forms of horizontal analysis in making comparative

study for the financial statement for number of years. (1)

(a) Comparative statement (b) Trend Analysis

(c) Common-size statement (d) Cash flow statement

10. ............... Is the point where total cast are exactly equal to the total sales? (1)

(a) Trend analysis (b) Break-even point-analysis

(c) Funds flow statement (d) Accounting ratios

11. What is vertical analysis? (1)

12. List any two uses of analysing the financial statements? (1)

13. Give two areas of interest for management while analysing the financial statement?

(1)

14. What is the advantage of comparative balance sheet? (1)

15. Name any two tools of financial analysis? (1)

16. What are the objectives of common size statement? (1)

17. What is meant by trend percentage analysis? (1)

18. State whether the following will increase, decrease or have no effect on cash

flow from operating activities - Decrease in outstanding employees benefits expenses by ₹ 3,000. (1) 19. Why is depreciation added to net profit while preparing ‘cash flow statement’? (1)

20. Cash receipts from sale of goods by a trading company will come under which

activity while preparing cash flow statement? (1) 21. Briefly explain any three advantages of financial statement analysis. (3)

22. List the different items which are presented under the major head non-current assets as

per schedule III, part I of the Companies Act, 2013. (3)

23. From the following information, calculate: (4)

(a) Operating profit ratio; and

(b) Working capital turnover ratio

24. Under which major headings and subheadings will the following items be shown in the

balance sheet of a company as per schedule III part I of the companies act, 2013? (4)

(i) Net loss as shown by statement of profit and loss.

(ii) Capital redemption reserve.

(iii) Bonds.

(iv) Loans repayable on demand.

(v) Unpaid dividend.

(vi) Buildings.

(vii) Trademarks.

(viii) Raw materials.

25. Name three users of financial statement analysis. (4)

26. Following information is extracted from the statement of profit and loss of gold Coin

Ltd. For the year ended 31st March, 2015. (4)

Particulars

31-03-2015

Amount(₹)

31-03-2014

Amount(₹)

Revenue from operations Employee benefit-expenses Depreciation Other Expenses Tax rate

60,00,000 30,00,000

7,50,000 15,50,000

30%

45,00,000 22,50,000

6,00,000 10,00,000

30%

Prepare comparative statement of profit and loss.

Information (₹)

(i) Revenue from operations (ii) Gross profit (iii) Office expenses (iv) Selling expenses (v) Interest on debentures (vi) Accidental losses (vii) Income from rent (viii) Commission received (ix) Current assets (x) Current liabilities

2,00,000 75,000 15,000 26,000

5,000 12,000

2,500 2,000

60,000 10,000

27. From the following information, calculate the amount of cash flows from investing activities:

(4)

Particulars (₹)

Land acquired during the year Non-current investment purchased Fixed tangible Assets (machinery) purchased Fixed tangible Assets sold (building) Sale of Non-current investment Sale of fixed tangible Assets (machinery) Receipt for permission of use of trademark Interest received on debentures held as investments Dividend received on shares as investments

5,00,000 2,70,000 4,50,000 6,00,000 1,60,000 2,10,000

90,000 20,000 30,000

Or From the following particulars, calculate cash flow from investing activities:

Particulars Purchased Sold

1. Machinery 2. Investment 3. Good will 4. 4. Patent 5. Interest received on debentures held as

investment ₹ 10,000. 6. Dividend received on shares held as investment

₹ 5,000. 7. A plot of land was purchased out of surplus funds for commercial use and rent received was

₹20,000.

8. Repayment of loans and advances ₹ 40,000

(₹) 4,00,000 2,00,000 1,00,000

(₹) 2,00,000 3,00,000

1,50,000

28. Under which head the following items will be placed in the balance sheet of the company

as per schedule III, part I of companies Act 2013. (6)

(i) Loans provided repayable on demand

(ii) Goodwill

(iii) Copyright

(iv) Loose tools

(v) Cheque

(vi) General reserve

(vii) Stock of finished goods

(viii) 9% Debentures repayable after three years

29. How will you show the following items in the balance sheet of Rama Ltd.? As at 31st

March, 2016? : (6)

(i) Company issued 10,000 equity shares of ₹ 10 each payable ₹ 5 on application and

balance on allotment. Company received applications for 9,000 shares and the company

hopes to allot shares to all the applicants.

(ii) Provision for tax for the year was ₹ 4, 00,000 though as per tax authorities the liability of

tax comes to ₹ 3, 00,000 only.

(iii) Creditors for plant purchased ₹ 5, 00,000 payable in 4 equal annual instalments.

(iv) Debtors and bills receivables 60,000

(v) 10% Debentures₹ 6, 00,000 redeemable in 3 equal annual instalments.

30. Prepare comparative income statement of blue black Ltd., from the following

information: (6)

Particulars 31st March, 2016

31st March, 2015

Revenue from operations (% of material consumed ) Cost of material consumed Employees benefit expenses (%of material consumed) Other expenses (% of revenue from operations) Other income ((% of revenue from operations)

�₹� 135%

14,00,000

17% 10% 7%

�₹� 140%

10,00,000

15% 10% 5%

Or Following is the comparative balance sheet of Alpha Ltd. as at 31st March, 2014 and 2015. Prepare comparative Balance Sheet.

31. Compute gross profit ratio, operating ratio, operating profit ratio and net profit from the

following information: (8)

Particulars (₹)

Cost of material purchased Change in inventories of finished goods and work-in-progress Employees Benefit Expenses : Wages 1,00,000 Salaries 60,000 Depreciation Other Expenses :

7,50,000 90,000

1,60,000 30,000

Carriage 10,000 Freight 20,000

Administrative expenses 60,000

Selling expenses 80,000 Provision for doubtful debts 5,000 Loss on sale of investments 10,000 Revenue from operations (sales) Other income Tax provisions

1,85,000 16,00,000

50,000 70,000

32. Following are the balance sheets of Krishtec Ltd., for the year ended 31st March, 2011

and 2012 : (8)

Particulars Note No.

2011-12

(₹)

2010-11

(₹)

I. EQUITY AND LIABILITIES (1) Shareholder’s Fund (a) Share capital (b) Reserve and surplus (2) Non-current liabilities Long-term borrowings (3) Current liabilities Trade payables

12,00,000

3,50,000

4,40,000

60,000

8,00,000 4,00,000

3,50,000

50,000

Total 20,50,000 16,00,000

II. ASSETS (1) Non-current Assets Fixed assets – Tangible Assets (2) Current Assets (a) Inventories (b) Trade receivables (c) Cash and cash equivalents

12,00,000

2,00,000 3,10,000 3,40,000

9,00,000

1,00,000 2,30,000 3,70,000

Total 20,50,000 16,00,000

Prepare a cash flow statement after taking into account the following adjustment:

(a) The company paid interest ₹ 36,000 on its long-term Borrowings.

(b) Depreciation charged on tangible fixed assets was ₹ 1,20,000.

Or

Following are the balance sheets of Delta Ltd., as on 31st March 2012 and 2013:

Particulars Note No. 2011-12 (Rs.) 2012-13 (Rs.)

I. EQUITY AND LIABILITIES (1) Shareholder’s Fund (a) Share capital (b) Reserve and surplus (2) Non-current liabilities

1

6,00,000 1,00,000

2,25,000

7,00,000 2,00,000

3,30,000

(a) Long-term borrowings

Total 9,35,000 12,30,000

II. ASSETS (1) Non-current Assets Fixed assets – Tangible Assets (2) Current Assets (a) Inventories (b) Trade receivables (c) Cash and cash equivalents

2

8,00,000

60,000 40,000 35,000

11,00,000

70,000 32,000 28,000

Total 9,35,000 12,30,000

Notes of Accounts

Particulars 31stMarch, 2012

(₹)

31stMarch,2013

(₹)

1. Reserve and surplus Surplus (Balance in statement of profit and loss) 2. Fixed Assets Plant and machinery

1,10,000

8,00,000

2,00,000

11,00,000

Adjustment:

A piece of machinery of the book value of ₹ 80,000 was sold for ₹ 65,000 at the beginning of the year. Depreciation provided on plant and machinery during the year

amounted to ₹ 2,00,000. Prepare a cash Flow statement.

ASSIGNMENT 2 : 2019-20

TIME:3 Hrs. ACCOUNTANCY : XII MARKS: 80

General Instructions:- i) All questions in this paper are compulsory.

ii) Attempt all parts of a question at one place.

iii) Answers should be followed by clear working notes, wherever required.

Q1) Shares on which the company has called the entire nominal value and has also received it

is shown in the Notes to Accounts on Share Capital under subscribed Capital as: [1]

(a) Subscribed and fully paid-up (b) Subscribed but not fully paid up (c) None of the above (d) Any of the above Q2) Securities Premium Reserve is shown on the Equity and Liabilities part of the Balance

Sheet under the head: (a) Current Liabilities (b) Reserves and Surplus

[1] (c) Share Capital (d) None of the above Q3) Which of the following item is assumed to be 100 while preparing Common-size Statement of Profit and Loss: (a) Income Tax Paid (b) Revenue from operations [1] (c) Cost of material consumed (d) Other Incomes Q4) What is meant by a Common-Size Statement? [1] Q5) Name any two tools of analysis Financial Statements. [1] Q6) Why are investors interested in analysing Financial Statements? [1] Q7) State one advantage of Financial Statements Analysis. [1] Q8) What is meant by a Common-Size Statement? [1] Q9) What is the objective of Comparative Balance Sheet? [1]

Q10) Which tool of Financial Analysis can be used to know the reasons for changes in financial performance of an enterprise? [1]

Q11) Assuming that the current ratio is 2:1, state whether the ratio will improve, decline or will have no change in case a Bill Receivable is dishonoured. [1]

Q12) State any two items which are included in Current Assets. [1]

Q13) What is measured by Liquidity Ratios? [1]

Q14) How is average Inventory computed? [1]

Q15) Gross Profit Ratio of a company is 50%. State whether the decrease in rent received by 15,000 will increase, decrease or not change in ratio? [1]

Q16) Payment of Income Tax is classified as: [1]

(a) Operating Activities (b) Investing Activities (c) Financing Activities (d) None of the above Q17) Dividend received by financial enterprise is shown in Cash Flow Statement under: [1] (a) Operating Activities (b) Investing Activities (c) Financing Activities (d) None of the above Q18) Interest received by other than financial enterprise is shown Cash Flow Statement under: [1] (a) Operating Activities (b) Investing Activities (c) Financing Activities (d) None of the above Q19) State the primary objective of preparing Cash Flow Statement. [1] Q20) Normally, what should be the maturity period for a short-term investment from the date of

acquisition to be qualified as Cash Equivalents? [1]

Q21) Name Sub-heads under the head ‘Current Assets’ as Schedule III Part I of the Companies Act, 2013 [3]

Q22) State any three objectives of Financial Statement. [3]

Q23) Under which major headings and sub-headings the following items will be shown in the Balance Sheet of a company as per Schedule III of the Companies Act, 2013? [4]

(a) Long-term Loans (b) Loose Tools (c) Trademarks (d) Drafts in Hand

(e) Bank Overdraft (f) Stores and Spares (g) Bonds (h) Capital Reserve

Q24) State any four limitations of Financial Statement. [4]

Q25) From the following, prepare a ‘Comparative Statement of Profit and Loss’ of Good Services Ltd. [4]

Particulars 2018-19

(`)

2017-18

(`)

Revenue from Operations Other Incomes Expenses

20,00,000 10,00,000 21,00,000

15,00,000 4,00,000

15,00,000

Rate of Income Tax 50%

Q26) Calculate ‘Return on Investment’ and ‘Debt to Equity’ Ratio from the following information: [4]

Net Profit after Interest and Tax `3,00,000 10% Debentures `5,00,000 Tax Rate 40%

Capital Employed `40,00,000 Q27) Calculate Cash Flows from Investing Activities from the following information: [4]

Particulars 31st March,

2019 (`)

31st March,

2018 (`)

Investment in Land 10% Long-term Investment Plant and Machinery

16,00,000 2,50,000 3,00,000

6,00,000 4,00,000 2,00,000

Goodwill 80,000 15,000

Additional Information:

(i) A machine costing `40,000 (depreciation provided thereon `12,000) was sold for `35,000. (ii) Depreciation charged during the year was `60,000.

Q28) The authorised capital of Suhani Ltd. is `45,00,000 divided into 30,000 shares of `150 each. Out of these, company issued 15,000 shares of `150 each at a premium of `10 per share. The amount was payable as follows:

`50 per share on application, `40 per share on allotment (including premium), `30 per share on first call and balance on final call. Public applied for 14,000 shares. All

the money was duly received. Prepare an extract of Balance Sheet of Suhani Ltd. as per Schedule III of the Companies

Act., 2013 disclosing the above information. Also prepare ‘Notes to Accounts’ for the same. [6]

Q29) What is meant by Analysis of Financial Statements? What is its importance to shareholders and employees? [6] Q30) Prepare a common size Balance Sheet of KJ Ltd. from the following information: [6]

Particulars Note No.

31st March, 2017

(`)

31st March, 2016

(`)

I. EQUITY AND LIABILITIES 1. Shareholder’s Funds 2. Non-Current Liabilities 3. Current Liabilties

Total II. ASSETS

1. Non-Current Assets 2. Current Assets

Total

8,00,000 5,00,000 3,00,000

16,00,000

10,00,000 6,00,000

16,00,000

4,00,000 2,00,000 2,00,000 8,00,000

5,00,000 3,00,000 8,00,000

Q31) From the given information, calculate the following: [8]

(i) Cost of Revenue from Operations

(ii) Opening and Closing Inventory

(iii) Quick Assets

(iv) Current Assets

Information:

Inventory Turnover Ratio 6 times, Inventory at the end is ` 6,000 more than the inventory in the beginning, Revenue from Operations (all credit) `2,40,000, Gross Profit 25% on cost, Current Liabilities `80,000, Quick Ratio 0.80 : 1

Q32) Following are the balance sheets of Sunrise Ltd, as at 31st March ,2019 and 31st March 2018, prepare a Cash Flow Statement.

Particulars Note No.

31-03-2019

(`)

31-03-2018

(`)

I. EQUITY AND LIABILITIES

1

6,50,000

4,50,000 1.Shareholders’ funds

a) share capital

b) reserves and surplus

2,10,000 1,50,000

2.Non-Current liabilities

Long term barrowing 2

2,00,000 2,00,000

3.current liabilities

Trade payables. 1,80,000 90,000

Total

12,40,000 8,90,000

II. ASSETS 1. Non-current assets a. Fixed assets

(i) Tangible assets(machinery) 7,50,000 1,50,000

5,15,000 1,00,000 2.. Non –current investment(12%

investments)

3. Current assets.

a. Inventories 1,75,000 1,25,000

b. Trade receivables 90,000 1,05,000

c. Cash and cash equivalent 75,000 45,000

Total 12,40,000 8,90,000

Notes of Accounts:-

Particulars 31-03-2019 (`) 31-03-2018 (`)

1.Reserve and surplus

General reserves 60,000 50,000

Surplus i.e. bal in statement of p & L 1,50,000 1,00,000

Total 2,10,000 1,50,000

2.Long term borrowings

10% debentures 2,00,000 2,00,000

Additional information:- (i) Depreciation charged during the year Rs. 65,000/-

(ii) Rent received during the year ` 20,000/- (iii) New investments made on 1st October ,2018

*****************

ASSIGNMENT 3 : 2019-20

TIME:3 Hrs. ACCOUNTANCY : XII MARKS: 80

General Instructions:- 1. All questions in this paper are compulsory.

2. Attempt all parts of a question at one place.

3. Answers should be followed by clear working notes, wherever required.

4. Ratios provide a _____________ measure of a company’s performance and condition.

a) Definitive b) Gross c) Relative d) Qualitative 1

5. The____________ ratios are primarily measures of return.

a) Liquidity b) Activity c) Debt d) Profitability 1

6. The ___________ of a business firm is measured by its ability to satisfy its

a) Activity b) Liquidity c) Debt d) Profitability 1

7. The ___________ is useful in evaluating credit and collection policies.

a) average Payment period b) Current Ratio

c) Average collection Period d) Inventory Turnover Ratio 1

8. The two basic measures of liquidity are

a) Inventory turnover and Current Ratio

b) Current Ratio and Liquid Ratio

c) Gross Profit Margin and Operating Ratio

d) Current Ratio and Average collection Period 1

9. The __________ is a measure of Liquidity which excludes___________, generally the least

liquid assets.

a) Current Ratio, Account Receivable b) Liquid Ratio, Account Receivable

c)Current Ratio, Inventory d) Liquid Ratio, Inventory 1

10. If Operating Cycle is 12 months and payment is received in 15 months, how will you classify

the assets? 1

11. Give the meaning of ‘Long term Provisions’. 1

12. State any two objectives of analysis of financial statement. 1

13. State any two limitations of analysis of financial statement. 1

14. What do you understand by Financial Analysis? 1

15. What is meant by Comparative Financial Statement? 1

16. What is Comparative Balance Sheet? 1

17. What is meant by Common Size Statements? 1

18. What is Common Size Balance Sheet? 1

19. List any two investing activities which result in to outflow of cash. 1

20. What is meant by Finance Activities?

1Give any two examples of cash flow from Operating Activities. 1

21. What do you understand by Cash Flow Statement? 1

22. What is Cash Equivalents? 1

23. Explain any three Importance of Financial Analysis. 3

24. Give the meaning of ‘Long term Provisions’. 3

OR Give the meaning of Trade receivables. With examples 3

25. From the following details, calculate Inventory Turnover Ratio:-

Annual Revenue from Operations 2,00,000

Gross Profit Ratio 25% on Revenue

From Operations

Inventory: Opening 38,500

Closing 41,500

4 26. On 1st April 2018, Nissan Ltd. Was formed with an authorized capital of Rs.60, 00,000 divided

in to 6, 00,000 equity shares of Rs.10 each. The Company issued prospectus inviting

applications for 4, 50,000 shares. The issue price was payable as under:

On Application Rs. 3; on Allotment Rs. 4; and balance on Call

Issue was fully subscribed and the company allotted shares to all the applicants.

The company did not make the call during the year. All money due on allotment was duly

received except on 2,000 shares.

Show the Share Capital in the Balance Sheet of the Company as at 31st March, 2019. 4

27. What is the interest of shareholders and prospective investors of financial analysis? 4

28. Prepare a common size Balance sheet of KJ Ltd. From the following information:

Particulars Note No. 31.03.2017 31.03.2016

I. EQUITY AND LIABILITIES

1. Shareholder’s funds 8,00,000 4,00,000

2. Non-Current Liabilities 5,00,000 2,00,000

3. Current Liabilities 3,00,000 2,00,000

TOTAL 16,00,000 8,00,000

II. ASSETS

1. Non-Current Assets 10,00,000 5,00,000

2. Current Assets 6,00,000 3,00,000

TOTAL 16,00,000 8,00,000

4 29. From the following figures, calculate Cash from operating activities:-

Particulars 31.03.2017 31.03.2016

Trade Receivables 1,20,000 1,19,000

Trade Payables 56,000 62,000

Outstanding Expenses 2,000 2,400

Prepaid Expenses 1,600 1,400

Accrued Income 1,200 1,500

Income Received in Advance 600 500

Profit made during the year Rs.2,60,000

OR Calculate cash from operating activities from the following:-

Particulars 31.03.2017 31.03.2018

P & L Balance 75,000 60,000

Cash and Bank Balance 35,000 12,000

Inventory 3,00,000 2,30,000

Trade Receivables 2,00,000 2,40,000

Trade Payables 60,000 80,000

Prepaid Expenses 3,000 10,000

Goodwill 30,000 20,000

Provision for Doubtful Debts 10,000 12,000

4

30. Under which Major headings and sub- headings will the following items be shown in the

Balance Sheet of a Company as per Schedule III Part I of the companies Act, 2013:

i) Balance of the Statement of Profit and Loss.

ii) Loan of Rs. 1, 00,000 payable after three years.

iii) Loose Tools.

iv) Short term deposits Payable on demand.

v) Trade Mark

vi) Land

vii) Cash at Bank

viii) Trade Payables. 6

31. Explain the use of financial analysis. 6

32. Prepare a Comparative Statement of Profit & Loss from the following information:

Particulars 31.03.2017 31.03.2016

Revenue from Operation 50,00,000 40,00,000

Finance Costs 22,00,000 16,00,000

Employee Benefit Expenses 6,00,000 5,00,000

Other Expenses (5% of Revenue from operations)

Income Tax 40% 45%

OR From the following information, prepare a Comparative Statement of Profit & Loss of Zee Ltd.

Particulars 31.03.2017 31.03.2016

Revenue from Operations 150% of Material Consumed

120% of Material Consumed

Material Consumed 20,00,000 10,00,000

Other Expenses 20% of Material Consumed

10% of Material Consumed

Income Tax 40% 40%

6

33. From the following, ascertain Debt-Equity Ratio Proprietary Ratio

Equity Share Capital 20,00,000

General Reserve 10,00,000

Security Premium Reserve 6,00,000

Profit & Loss Balance (1,00,000)

10% Debentures 3,00,000

Loan from IDBI 12,00,000

Current Liabilities 10,00,000

Fixed Assets 40,00,000

Current Assets 20,00,000

OR From the following data calculate:-

i) Gross Profit Ratio; ii) Debt Equity Ratio; iii) Net Profit Ratio iv) Proprietary Ratio

Particulars Amount

Revenue from Operations 30,00,000

Cost of Revenue from Operations 20,00,000

Net Profit 3,00,000

Fixed Assets 6,50,000

Current Assets 6,00,000

Current Liabilities 2,00,000

Paid up Share Capital 5,00,000

Debentures 2,50,000

8

34. Following is the Balance Sheet of Mevanca Limited as at 31st March, 2017:

Particulars Note No. 31.03.2017 31.03.2016

I. EQUITY AND LIABILITIES

1. Shareholder’s Fund

a) Share Capital 3,00,000 1,00,000

b) Reserve and Surplus 1 25,000 1,20,000

2. Non-Current Liabilities

Long term Borrowings 2 80,000 60,000

3. Current Liabilities

a) Trade Payables 6,000 20,000

b) Short- term Provision 3 68,000 70,000

TOTAL 4,79,000 3,70,000

II. Assets:

1. Non-Current Assets

Fixed Assets 4 3,36,000 1,92,000

2. Current Assets

a) Inventories 67,000 60,000

b) Trade Receivables 51,000 65,000

c) Cash & Bank Balances 25,000 49,000

d) Other Current Assets - 4,000

TOTAL 4,79,000 3,70,000

Notes to Account:

1. Reserve and Surplus

Surplus i.e. Balance in Statement of Profit & Loss 25,000 1,20,000

2. Long term Borrowings

10% Long term Loan 80,000 60,000

3. Short term Provisions

Provision for Tax 68,000 70,000

4. Fixed Assets

Machinery 3,84,000 2,15,000

Accumulated Depreciation (48,000) (23,000)

3,36,000 1,92,000

Additional Information: 1. During the year 2017-18, Rs. 1, 10,000 has been charged as depreciation on Plant &

Machinery.

OR

Following is the Balance Sheet of Rachna Limited as at 31st March, 2017:

Particulars Note No. 31.03.2017 31.03.2016

I. EQUITY AND LIABILITIES

1. Shareholder’s Fund

a) Share Capital 5,00,000 3,00,000

b) Reserve and Surplus 1 1,25,000 2,20,000

2. Non-Current Liabilities

Long term Borrowings 2 1,80,000 1,60,000

3. Current Liabilities

a) Trade Payables 6,000 20,000

b) Short- term Provision 3 68,000 70,000

TOTAL 8,79,000 7,70,000

II. Assets:

1. Non-Current Assets

Fixed Assets 4 5,36,000 3,92,000

2. Current Assets

a) Inventories 1,67,000 1,60,000

b) Trade Receivables 1,51,000 1,65,000

c) Cash & Bank Balances 25,000 49,000

d) Other Current Assets - 4,000

TOTAL 8,79,000 7,70,000

Notes to Account:

1. Reserve and Surplus

Surplus i.e. Balance in Statement of Profit & Loss 1,25,000 2,20,000

2. Long term Borrowings

10% Long term Loan 1,80,000 1,60,000

3. Short term Provisions

Provision for Tax 68,000 70,000

4. Fixed Assets

Machinery 5,84,000 4,15,000

Accumulated Depreciation (48,000) (23,000)

5,36,000 3,92,000

Additional Information: a) During the year 2017-18, Rs. 2, 40,000 has been charged as depreciation on Plant &

Machinery. 8

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