Unit End Questions For All Units
Unit End Questions For All Units
9 Prepare trading and profit & loss account for the year ended 31-12-2018. And a
balance sheet of ABC Company as on that day from the following trail balance.
S.N Particulars Debit Credit (Rs.)
o (Rs.)
1 furniture 6,500
2 Plant & machinery 60,000
3 Buildings 75,000
4 Capital - 1,25,000
5 Bad debts 1750 -
6 Reserve for bad debts - 3,000
7 Sundry debtors 40,000 -
8 Sundry creditors - 24,000
9 Opening stock(01.01.2018) 34,600 -
10 Purchases 54,750 -
11 Sales - 1,54,500
12 Bank OD - 28,500
13 Sales returns 2,000 -
14 Purchase returns - 1250
15 Advertisements 4,500 -
16 Interest paid 1180 -
17 Commission received - 3,850
18 Cash in hand 6,500 -
19 Salaries 33,000 -
20 General expanses 7,820 -
21 Travelling expanses 9,000 -
22 Insurance paid 3,500 -
Total 3,40,100 3,40,100
Adjustments:
i. Closing stock(31.12.2018)=10,000/-
10 What is financial ratio? Discuss different types of Financial Ratios
11 Write the significance of Liquidity and solvency ratio
12 Explain the importance of turnover ratios.
13 What is the role of Profitability ratios in assessing the financial performance of
company?
14 Calculate the current ratio and write your comments from the following data:
Current liabilities Amount Current assets Amount
Sundry debtors 3,000/- Cash in hand 5,000/-
Outstanding 4,000/- Cash at bank 10,000/-
expenses
Bank over draft 6,000/- Closing stock 4,000/-
Bills payables 5,000/- Prepaid 3,000/-
expenses