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A & B are partners sharing pretits in the ratio 3:2 with capital of ₹ 5,00,000 &
3,00,000 resp. Interest on capitl is a greed @ 6% p.a. Bis to be allowed an annual
salary of ₹ 60,000, during the year 2013-14, the profit prior to the calculation of
interest on capitla but after charging B’s salary amounted to ₹ 1,80,000 A provision of
5% of the profit is to be mad ein respect of commission to the manager.
prepare P & L app. a/c showing the distribtin of profit the partners capital account for
the year snding March, 31, 2014
Q2. A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2 with
capitals of ₹ 5,00,000 and ₹ 2,50,000 respectively on 1st April, 2013. Each partner is
entitled to 10% p.a. interest on his capital A is entitled to a commission of 10% on net
profit remans after deducting interest on capitals but before charging any commission
B is entitled to a commission of 8% of net profit remaing after deducting interest on
capitals and after charging all commission. The profits for the year ended 31 st March,
2014 prior to calculation of interest on capital was ₹ 3,75,000 prepare profit and Loss
Appropriation Account.
Q3. From the following Balance sheet of long andshort calcolate interest on capital @8%
p.a. for the year ended 31st March 2012.
balance Sheet as at 31st March 2012
Labilities ₹ Assets ₹
long capital A/c 1,60,00 fixed assets 3,00,00
Short Capital Account 0 Drawing 0
Profit loss app a/c (2011-12) 1,40,00 long 40,000
0 other assets 60,000
1,00,00
0
4,00,00 4,00,00
0 0
During the year, long’s drawing were ₹ 40,000 and short drawing were ₹ 50,000
profit for the year was ₹ 1,50,000
Q4. A, B and C were partners with capitals ₹ 60,000 ₹ 60,000 and ₹ 30,000 resp. Their
current account balance were A ₹ 10,000, B ₹ 5,000 and C ₹ 2000 cds according to
partnership deed 10% of the profit is to be transferred to general reserve and partners
were entitie to interest on capital @ 5% p.a. c being the working partner was also
entitled to salary of ₹ 12,000 p.a. the profits were to be divided as follows.
(a) the first ₹ 20,000 in proportion to their capitals
(b) Next ₹ 30,000 in the ratio of 5:3:2
(c) Remaining profits to be shared equally.
The firm made profit of ₹ 1,80,000 for the year ended 31st march 2014 before
charging any of the above items. prepare profit and loss appropriation a/c and pass
entries.
Q5. X and Y are partners with a profit sharing ratio of 1:2 with capitals of ₹ 4,00,000 and
₹ 6,00,000 resectively. On 1st October, 2004 X and Y granted loans of ₹ 1,00,000 and
₹ 60,000 respectively to the firm. Distribute the profit/losses amongst in partners for
the year ended 31st March, 2005 in credit of the following cases.
Case(a) If the profit before interest for the year amounted to ₹ 12,000
Case (b) If the profit before interest for the year amounted to ₹ 3,000
Case (c) If the loss before interest for the year amounted to ₹ 7,500.
Q6. Calculate the interest on drawings of Mr. Arun @ 10% p.a. for the year ended 31st
march, 2007 in each of the following alternative cases:
Case (a) If he withdrew ₹ 5,000 p.m. at the end of every month;
Case (b) If he withdrew as follows:
1st June, 2006 20,000
st
31 August, 2006 10,000
31st Oct, 2006 18,000
st
1 Feb, 2007 12,000
Case (c) if he withdrew ₹ 15,000 in the beginning of each quarter;
Q7. P, A and R are the partner in a firm. Find that drawings Q frew ₹ 6,000 at the end of
year month for 6 month ending 30th September 2006.
Q8. A, B and C starting business on 1st July 2006 find that B Drew ₹ 8,000 at the end of
every month for 9 month ending 31st March, 2007
Q9. A and B contribute ₹ 4,00,000 and ₹ 3,00,000 respectively as their capital. they
decide to allow interest on capital @8% p.a. Their respective share of profit 3 : 2 and
the profit for the year is ₹ 42,000 before allowing for interest on capital Show the
distribution of profits (I) Where there is no agreement except for interest capitals, and
(II) Where there is a clear agreement that the interest on capitals will be allowed even
if it involves the firm in loss.
Q10. A, B and C are partners sharing profits and losses in the ratio of 5 : 3 : 1. After the
final accounts have been prepared, it was discovered that interest on drawings had not
been taken into consideration. The interest on drawing of partners amounted to A ₹
800, B ₹ 600 and C ₹ 400. give the necessary adjusting journal entry.
Q11. Anil, Sunil and Sanjay have omitted interest on Capitals for two years ended on 31 st
March, 2014. their fixed capitals in two years were Anil ₹ 80,000, Sunil ₹ 70,000 and
Sanjay ₹ 30,000. rate of interest on Capital is 10% p.a. Their profit Sharing ratios
were in first year 4 : 3 : 2 and in second year 3 : 2 : 1.
Give necessary adjusting entry at the beginning of next year.
Q12. A, B and C were partners in a firm. On 1-4-2010 their capitals stood at ₹ 50,000, ₹
25,000 and ₹ 25,000 respectively. As per the provisions of the partnerhip deed:
(a) C was entitled for a salary of ₹ 1,000 p.m.
(b) Partners were entitled to interest on capial at 5% p.a.
(c) Profits were to be shared in the ratios of capials.
The net profit for the year ended 31-3-2011 of ₹ 33,000 was divided equally without
providing for the above terms.
Pass an adjustment entry to rectify the above error.
Q13. X, Y and Z are partners in a firm sharing profits and losses in the ratio 5 : 3 : 2. Their
capitals (fixed) are ₹ 2,00,000; ₹ 1,50,000; ₹ 1,25,000 respectively. for the year
ended 31st March, 2014 interest on capital was credited to them @ 8% instead of 10%.
\
Give adjusting journal entry.
Q14. The partners of a firm distributed the profits for the year ended 31 st March, 2003, ₹
1,50,000 in the ratio of 2 : 2 : 1 without providing for the following adjustments.
(a) A and B were entitled to a salary of ₹ 1,500 per quarter.
(b) C was entitled to a commission of ₹ 18,000.
(c) A and C had guaranteed a minimum profit of ₹ 50,000 p.a. to B.
(d) Profits were to be shared in the ratio of 3 : 3 : 2.
Pass necessary journal entry for the above adjustments in the books of the firm.
Q15. Ram and Mohan are partners sharing profits and losses in the ratio of 2 : 1. At the end
of third year, i.e., on 31st March, 2011, they decided to take their manager Mr. Sohan
into partnership with effect from 1 st April, 2008. As manager, Sohan was getting
annual salary of ₹ 24,000. He had also advanced ₹ 30,000 to the firm by way of a
loan on which he was getting interest @ 15% per annum.
During the three years firm’s profits after adjusting salary to Sohan, interest on loan
and interest on the capital of the partners were:
200 Profi ₹ 43,900
9 t
201 Loss ₹ 20,000
0
2011 Profi ₹
t 1,00,000
According to the new agreement, Sohan is to be given annual salary of ₹ 16,800 and
1/5th share in the profits of the firm. Sohan’s loan shall be treated as his Capital from
the beginning and similar to other partners as his capital will carry interest @ 10% per
annum.
Record the journal entry to give effect to the above
Q16. A, B and C are partners in a firm. their profit sharing ratio is 3 : 2 : 1. However, C is
guaranteed a minimum amount of ₹ 10,000 as share of profits every year. Any
deficiency arising on that account shall be met by A. the profits for the two years
ending 31st March, 2010 and 2011 were ₹ 30,000 and ₹ 90,000 respectively. Prepare
Profit and Loss Appropriation Account for the two years.
Q17. A, B and C are partners having capital of ₹ 10,00,000, ₹ 8,00,000 and ₹ 6,00,000 in a
firm and shaving profit Y& loss equally. C is guaranteed a minimum profit of ₹
1,00,000 as a share of profit every year. The firm incurred a loss of ₹ 3,00,000 for the
year ended 31st March 2015.
You are required to show the necessary accounts for division of loss and giving effect
to minimum granted profit to C
Q18. A and B are partners in a firm A is to get a commission of 10% of net profit before
charging any commission. B is to get a commission of 10% on net profit after
charging all commission. Net profit before charging any commission was ₹ 55,000.
find out the commission of A and B.
Q19. Tulsi and Kabir are partners sharing profits in proportion of 3 : 2 with capitals of ₹
8,00,000 and ₹ 6,00,000 respectively. Interest on capitals is agreed at 6% p.a. tulsi is
to be allowed a salary of ₹ 6,000 per month. For the year ended 31 st March, 2014, the
profits prior to calculation of interest on capital but after charging Tulsi’s salary
amounted to ₹ 2,28,000. Manager is to be allowed a commission of 10% of the
profits.
Prepare an account showing the allocation of profits.
Q20. X and Y are in partnership sharing profits and losses in the ratio of 2 : 1. they decided
to admit Z, their manager, as a partner giving him 1/5th share of profit.
Z, while a manager, was receiving a salary of ₹ 25,000 per annum plus a commission
of 10% of the net profit after charging such salary and commission.
It was also agreed that any excess amount which Z receives as a partner (over his
salary and commission) will be borne by X. Profit for the year amounted to ₹
3,22,000. before payment of salary and commission. Prepare a Profit & Loss
Appropriation Account.
Q21. Fill in the missing figures in the following Accounts.
Profit and Loss Account
for the year ended 31st March, 2014
Particulars ₹ Particulars ₹
To Mgr Commission 10%. 6,00 By Profit for the ……
of ₹ …………….. 0 year .
To net profit T/F to P&L
app a/c
…… ….
Profit and Loss appropriation account
for the year ended 31st March, 2014
Particulars ₹ paritculars ₹
To interest on Capital @ 8% p.a. By Profit & Loss
X A/c
Y
To salary to Y
To profits transferred to Capial
Accounts X 3/5
Y 2/5 10,000
Q22. A and b are partners sharing profits in the ratio of 3 : 2 Interest on Capital is allowed
at 10% p.a. and charged on drawings at the same rate. Fill up the missing figures in
the following accounts.
Dr. Profit and loss appropriation account Cr.
for the year ended 31st March, 2015
Particulars ₹ Particulars ₹
To Salary to B By profit & Loss A/c (Net Profit)
To By interest on Drawings
To profit transferred to 1,20,00 A 2,500
0 B 1,500
2,84,00
0
Chapter 2
Q1. Meena purchased simmi’s business from 1st April, 2015. The Profits disclosed by
Simmi’s Business for the last three years were as follows:
Year ending 31st March 2013 - ₹ 40,000 (Including an Abnormal gain of ₹ 5,000)
Year ending 31st March, 2014 - ₹ 50,000 (After charging an Abnormal Loss of
₹ 10,000)
Year ending 31st March, 2015 - ₹ 45,000 (Excluding ₹ 5,000 as annual Insurance
Premium of firm’s Pro-perty now Insured)
Calculate the Value of firm’s goodwill on the basis of 2 years Purchase of the average
Profit for the last three years.
Q2. A and B are partners sharing profits and losses in the ratio of 3 : 2. they agree to take
C into partnership for 1/3rd share. for this purpose, goodwill is to be valued at two
year’s purchases of the average profit of last four years which were as follows:
year ending on 31st March, 2008 50,000 (Profit)
Year ending on 31st March, 2009 1,20,000 (Profit)
st
Year ending 31 March, 2010 1,80,000 (Profit)
Year ending on 31st March, 2011 70,000 (Loss)
On 1 April, 2010 a Motor bike costing ₹ 50,000 was purchased and
st
Chapter 3
Q1. X and Y are partners sharing profits in the ratio of 4 : 3. Z joins partnership for
2/7th share in the profits (of which he acquires 3/4 th from X and 1/4th from Y). Z
brings in ₹ 3,00,000 for his capital and ₹ 1,20,000 for goodwill. Half of the
amount of goodwill is withdrawn by the old partners.
Pass necessary journal entries and find out new profit sharing ratio.
Q2. Partners A, B and C share the profit of a business in the ratio of 3 : 2 : 1
respectively. for one sixth share they admit D who brings in ₹ 2,00,000 including
₹ 60,000 for his share of goodwill. Show the journal entries if A, B, C and D decide
to share the profits respectively in the ratio of (a) 15 : 10 : 5 : 6; (b) 5 : 3 : 2 : 2
and (c) 2 : 2 : 1 : 1. Assume that the entire cash brought in by D remains in the
business Give Journal entries.
Q3. X and y are partners sharing profits and losses in the ratio of 3 : 2. They admit Z
into partnership, Z paying a premium of ₹ 1,00,000 for ¼ share of the profits
while X and Y as between themselves sharing profits and losses equally. Give
Journal entries.
Q4. B and C are in partnership sharing profit and losses as 3 : 1. they admit D into the
firm, D paying a premium of ₹ 15,000 for 1/3 rd share of the profits. As between
themselves B & C agree to share the future profit & Losses equally. Defft journal
entries showing appropriation of the premium money.
Q5. X, Y and Z were partners sharing profits and losses as to X one half one third; and
Z one sixth As from 1st April, 2014, they agreed to admit A into partnership for
one – sixth share in profits and losses, which he acquires equally from X and Y ,
and is to bring in ₹ 50,000 for his capital and ₹ 20,000 as premium of goodwill A
paid in his capital money but in respect of premium for goodwill, he could bring
in only ₹ 15,000.
You are required to
(i) Give the Journal entries to carry out the abvoe arrangments, and
(ii) Work out the new profit sharing ratio of the partners.
Q6. X and y are partners in a firm sharing profits and losses in the ratio of 5 : 3
March, 2009, their balance Sheet was as under:
Liabilities ₹ Assets ₹
Creditors 50,000 Bank 29,000
Provident Fund 15,000 Debtors 1,80,000
Workmen’s cump reserve 40,000 Stock 1,25,000
Capitals Premises 1,50,000
X 2,60,000 Advt exp 16,000
Y 1,35,000 3,95,000
5,00,000 5,00,000
On 1 April, 2009, Z is admitted as a partner, X surrenders 1/4 th of his share and
st
8,65,00 8,65,00
0 0
Raman is admitted as a new partner introducing a capital of ₹ 1,60,000. The new
profit-sharing ratio is decided as 5 : 3 : 2. Raman is unable to bring in any cash for
Goodwill So, it is decided to value the goodwill on the basis of Raman’s share in
the proifts and the capital contributed by him. following revaluations are made
(i) Stock to depreciate 5%
(ii) Provision for doubtful debts is to be ₹ 5,000.
(iii) Furniture to depreciate 10%
(iv) Buildings are valued at ₹ 4,00,000.
Show the necessary Ledger Accounts and the balance Sheet of the new firm.
Q10. Mohan and Sohan are in partnership sharing profits in the proportion of 3/5 and
2/5 respectively.
The balance sheet is as follows:
Liability ₹ Assts ₹
Capital Mohan 2,00,000 Cash 65,000
Sohan 1,00,000 Debtors 1,00,000
Creditors 40,000 Prov 40,000 60,000
Stock 1,50,000
Plant 65,000
They decided to admit Rohan to 1/3rd share on terms that he is to pay into the
business ₹ 1,00,000 as Goodwill and sufficient capital to give him 1/3 rd share of
the total capital of the new firm. It was agreed that Provision for bad debts be
reduced to ₹ 10,000, that the stock be revalued at ₹ 2,00,000; and that the plant
be reduced to ₹ 50,000.
Prepare necessary ledger accounts and show the balance sheet of the new
partnership.
Q11. Mohan and Mahesh were partners in a firm sharing profits in the ratio of 3 : 2. On
1st April, 2012 they admitted Nusrat as a partner in the firm. The balance sheet of
Mohan and Mahesh on that date was as under.
balance sheet of mohan and Mahesh
as on 1st April 2012
Liabilities ₹ Assets ₹
Creditors 2,10,00 Cash 1,40,00
Workman compfund 0 Debtor 0
reserve 2,50,00 s 1,60,00
capital 0 Stock 0
Mohan 1,60,00 Mach 1,20,00
Mahesh 0 0
1,00,00
1,00,00 0
0 2,80,00
80,000 0
4,00,000 4,00,000
Capital Accounts
Particulars ₹ ₹ ₹
To Goodwill (w/o) By Bad b/d
to Baat 40,00 By C’s current
0 a/c (Goodwill)
By cash a/c
Part B
Q1. The authorised capital of mercury ltd is ₹ 15,00,000 divided into 1,50,000 equity
shares of ₹ 10 each. Out of these the company issued 1,00,000 equity shares for
subscription to the public. The public applied for 98,000 equity shares and all the
money was duly received. how will you show the share capital A/c in the balance
sheet of star ltd. as per serviced a schedule XI – Part I of the companies Act. 1956,
Also prepare notes to account for the same.
Q2. Moon Ltd. is registered with capital of ₹ 40,00,000 divided into 4,00,000 equity
shares of ₹ 10 each. The company issued 2,00,000 equity shares for subscription
to the public. The public applied for 1,90,000 equity shares and all the money
was duly received, except the final call of ₹ 2 per share on 5,000 shares. 1,000 of
the shares on which the final call was not received, were forfeited. Show how
“Share capital” will appear in the Balance Sheet of the company. Also prepare
‘Notes to Accounts’ for the same.
Q3. Ankit Ltd. was registered with an authorised capital of ₹ 1,20,00,000 divided into
1,20,000 Equity Shares of ₹ 100 each . The company issued 6,000 Equity shares
as fully paid to the vendor for purchases of building and 50,000 Equity Share
were subscribed for by the public. All the calls were made and were duly received
except the second and final call of ₹ 20 per share on 700 shares. Show how
“Share Capital” will appear in the balance Sheet of the Company. Also prepare
Notes to Accounts for the same.
Q4. X Ltd has an authorised capital of ₹ 15,00,000 divided into 1,00,000 Equity
shares of ₹ 10 each and 50,000 9% Preference Shares of ₹ 10 each. the company
invited applications for all the preference shares and 90,000 equity shares. All
the preference shares were subscribed, called and paid, while subscriptions were
received for only 85,000 equity shares. During the first year, ₹ 8 per share were
called. Ram holding 1,000 shares and Shyam holding 2,000 shares did not pay the
first coll of ₹ 2. shyam’s share were forfeited after the first call and later on 1,500
of the forfeited shares will reissued at ₹ 6 per share ₹ 8 called op
Show share capital in the balance Sheet as per serviced schedule VI as at 31 st
March, 2013 or prepare relevant notes to account.
Q5. Venus Ltd. has the following balance in Reserves and Surplus
Amt. (₹)
Debenture Redemption Reserve 4,00,00
General Reserve 0
Surplus, i.e. balance in the statement of profit and loss 2,00,00
0
6,00,00
0
During the year, the company earned a profit of ₹ 3,00,000. It decided to
appropriate ₹ 1,20,000 towards Debenture Redemption Reserve and ₹ 80,000
towards General Reserve. Show how it will be shown in the Notes to Accounts on
Reserve and Surplus.
Chapter
Q1. From the following balance Sheets, Prepare a Comparative Balance Sheet
Particulars Note NO. 31.3.2015 31.3.2014
(₹) (₹)
I. Equity and Liabilities
1. Shareholders’ Funds
(a) Share capital 4,00,000 6,00,000
(b) Reserves and Surplus 2,00,000 2,50,000
2. Non-Current Liabilities
Long – term Borrowings 3,00,000 2,00,000
3. Current Liabilities
(a) Trade Payables 1,50,000 90,000
(b) Other – current liabilities 60,000 54,000
(c) Short term provisions 40,000 34,000
Total 11,50,000 11,28,000
II. Assets
1. Non- Current Assets
(a) Fixed Assets
Tangible Assets 6,00,000 5,40,000
(b) Non-Current Investments 2,00,000 2,00,000
2. Current Assets
(a) Inventories 1,00,000 1,50,000
(b) Trade Receivables 2,00,000 2,00,000
(c) Cash and Cash – Equivalents 50,000 38,000
Chapter
Q1. Calculate Current ratio from the following information:
particulars ₹
total assets 8,00,000
Non-current Assets 6,50,000
Shareholder’s funds 6,00,000
None-Current Liabilities 80,000
Q2. Working Capital ₹ 2,00,000, Tota Assets = ₹ 8,00,000, non – current
assets = ₹ 5,00,000 Calculate current ratio.
Q3. Calculate Current ratio
Particlurs fund 3,00,000
total Assets 4,50,000
Non – current liabilities 70,000
Non current Assets 2,50,000
Q4. The current ratio is 2 : 1 state giving reasons which of the following transaction
would improce, reduce & not change the current ratio.
(a) Repayment of current liability
(b) Purchase of goods on credit
(c) Sale of an office typewriter (Book Value = ₹ 4,000) for ₹ 3,000 only
(d) Sale of merchandise (goods) costing ₹ 10,000 for ₹ 11,000.
(e) Payment of dividend
Q5. Z ltd has a current ratio of 3.5 : 1 & quick ratio of 1.5 : 1 It the excoss of current
assets over quick assets as represented by stock is ₹ 60,000. Calculate current
assts and current liabilities.
Q6. From the following information, calculate current ratio.
Particolars ₹
Total Assets 3,00,000
Long term liabilities 80,000
Share holders’ fund 2,00,000
Non-current assets 2,60,000
Q7. Ratio of current assts (₹ 3,00,000) to current liabilities (₹ 2,00,000) is 1.5 : 1 The
accountant of the firm is interested in maintaining a current Ratio of 2 : 1 by
paying off a part of the Current liabilities. Compute amount of Current liabilities
the should be paid so that the Current + ratio at the local 2 : 1 may be
maintained.
Q8. the Quick ratio of a company is 2 : 1 state givne reasons (for any 4) which of the
following would improve reduce or not change the ratio.
(i) purchas of machinery for cash
(ii) Purchase of goods on credit
(iii) Sale of furniture of cost
(iv) Sale of goods at a profit
(v) cash received from trade receivable
Q9. Shareholders fund ₹ 4,00,000, reserve & surplus ₹ 2,00,000, Total debt ₹
11,40,000 current liabilities ₹ 3,40,000 calculate debt to equity ratio.
Q10. From the following balance sheet of pluto ltd, calculate debt to Equity Ratio.
Q11. Share holders found ₹ 1,30,000, Total debt ₹ 1,90,000. Current liabilities ₹
30,000 Calculate Total Assets to Debt ratio
Q12. Calculate Proprietary Ratio
Particulars ₹
Equity share capital 8,70,000
Preference share capital 4,00,000
reserve of surplus 50,000
12% Debentures 4,00,000
Current Assets 5,00,000
Tangible Assets 12,00,000
Intangible Assets 5,00,000
Q13. Moon Ltd has 15% long term loan of ₹ 1,00,000 The profit after interest and after
tax is ₹ 80,000 calculate Intereest coverage ratio If tax paid during the year is ₹
40,000.
Q14. RK Ltd has 15% Debentures of ₹ 1,00,000 12% long term long loan of ₹ 1,00,000
Its profit after interest and after tax is ₹ 97,200 Calculate Interest coverage ratio
if tax rate is 40%.
Q15. Calculate Inventory turnover ratio
Opening inventory of Materials 2,00,000
Closing inventory of materials 1,50,000
Purchase at materials 6,30,000
Opening inventory of finished goods 70,000
Closing inventory of finished goods 90,000
Opening inventory of work in progress 40,000
Closing inventor of work in progress
wages 30,000
Carriage in wards 10,000
Q16. Calculate opening & Closing inventory from the following in formation. Revenue
from operation (total sales) ₹ 60,000, gross profit 25% inventory turnover ratio
5 times closing inventory is ₹ 12,000 more than the opening inventory
Q17. ₹ 2,40,000 is the cast of Revenue from operation ₹ 4,00,000. Inventory
Turnovers ratio 8 times calculate the value of opening inventory and closing
inventory in loan of the following cases
(a) If closing inventory was ₹ 10,000 more than the opening invenoory
(b) If closing inventory was 4 times of the opening inventory.
(c) If closing inventory was 2 times more than the opening inventory.
Q18. From the following information, calculate trad receivable Turnvers ratio.
Cost of revenue from operation ₹ 3,00,000
Gross Profit 33% of cost
Opening debtors ₹ 1,25,000
Closing debtors ₹ 75,000
Q19. From the following information
Trade receivable turnover ratio 4 times
Cost of Revenue from operation ₹ 3,00,000
Gross Profit 25%
Opening Debtors ₹ 40,000
Calculate closing Debtors if cash Revenue from operation is 20% of total
revenue from operations.
Q20. The following information is given for ABC Ltd. Trade Receivabel Turnover Ratio
3 times Revenue from operation ₹ 3,00,000. then Calculate opening debtors and
closing debtors in each of following cases
(a) If closing debtor were ₹ 1,00,000 in excess of opening debtors
(b) If closing debtors were 3 times of the opening debtors.
(c) If closing debtors were 3 times more than the opening debtors.
(d) If closing debtors were 1/3rd of the opening debtors.
Q21. Calculate Gross Profit Ratio
Revenue from Operations (Net Sales) ₹ 4,00,000
Gross Profit 25% on cost
Q22. the following information is given for X ltd.
Average inventory 1,22,500
Inventory Turnover Ratio 4 times
Average Trade Receivable 1,12,000
Trade Recivable turnover Ratio 5 times
Q23. Calculate operating Profit Ratio.
Opening Inventory 1,00,000
Purchases 6,00,000
Employees Benefit Expnses 60,000
Closing Inventory 35,000
Other Expenses 40,000
Revenue from operation 9,00,000
Q24. From the following information Calculate Return on Investment Net profit after
tax ₹ 2,40,000, Tax Rate 50% Revenue from operation ₹ 20,00,000; 15% long
term Borrowings ₹ 8,00,000, Equity Share Capital ₹ 1,50,000; Reserve & surplus
₹ 1,50,000 18% preference share capital 1,00,000
Q25. From the following Balance Sheet of XYZ Ltd. calculate Return on Investment:
Particulars Note NO. 31.3.2014
(₹)
I. Equity and Liabilities
1. Shareholders’ Funds
(a) Share capital 20,00,000
(b) Reserves and Surplus 1 11,00,000
2. Non-Current Liabilities
Long – term Borrowings 2 15,00,000
3. Current Liabilities
(a) Short term borrowings 2,40,000
(b) Trade payable 3,10,000
Total 51,50,000
II. Assets
1. Non- Current Assets
Fixed Assets 41,00,000
2. Current Assets
(a) Current Inventories 5,50,000
(b) Inventories 3,00,000
(c) Cash and Cash – Equivalents 2,00,000
Total 51,50,000
Notes to Accounts
Amt. (₹)
1. Reserves and Surplus
General Reserve 4,00,00
Surplus in the statement of profit and loss 0 11,00,00
2. Long term borrowings 7,00,00 0
15,000; 10% Debentures of ₹ 100 each 0
15,00,00
0
The Surplus in the Statement of Profit and Loss includes profit of ₹ 4,02,000 for
the current period.
Q26. Calculate Return on Investment & Debt Equity Ratio from the following
Net profit after interest and tax 6,00,000
10% Debentures 10,00,000
Tax Rate 40%
Capital Employed 80,00,000
Q27. Calculate Current Ratio of a company from the following information inventory
(Stock) Turnover Ratio 4 times inventory (Stock) in the beginning was ₹ 20,000
loss than inventory at the end. Revenue from operation (net sales) ₹ 6,00,000;
Gross profit Ratio 25% Current liabilities ₹ 60,000 and quick ratio is 0.75 : 1
Q28. Umesh ltd debt equity ratio is 2 : 1 state with reason whether this will increase
decrease or there will be no change in it due to the following transactions:
(i) If track payable of ₹ 5000 was paid
(ii) Issued equity shares of ₹ 2,00,000
(iii) Issued 9% Debenture of ₹ 1,00,000
Q29. From the following details, calculate opening inventory closing inventory ₹
60,000; Total Revenue from operations ₹ 5,00,000 (Including cash revenue from
operation ₹ 1,00,000) total purchase ₹ 3,00,000 (Including credit purchase ₹
60,000) goods are sold at a profit of 25% on cost
Q30. From the following statement of profit and loss of ayus ltd for the year ended 31 st
March, 2015. compute the operating ratio.
Particulars Note No. Amt (₹)
I. Revenue from Operation 20,00,000
II. Expenses
Cost of Material Consumed 12,00,000
Changes in Inventories of Finished Goods and work in 1
progress 1,00,000
Employees Benefit Expenses 60,000
Finance Cost 2 1,00,000
Other Expenses 40,000
Total Expenses 15,00,000
III. Profit from Operations ( I – II) 5,00,000
Note to Accounts