Commerce Guide

Prabir Sir
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Mock Test Paper

Set-2
FINANCIAL RPORTING AND FINANCIAL STATEMENT ANALYSIS
- HONOURS
Course: DSE 6.1A
Full Marks: 80
Group - A
1.What are the Objective of Indian AS 16?Mention any 5 items which are to be
Capitalized while purchasing Plant & Machinery. Define caring amount and
depreciation amount as per Ind AS 16.
Or
What are the Fundamental Accounting Assumptions? What are the components of
financial statements as per Ind-AS-1- Preparation of Financial Statements?
2.From the following information, calculate fun flow operation of Exe Ltd. Profit
before Tax (PBT) ₹ 2,40,000; Bad Debt written off ₹ 12,000; Office expenses charged
₹ 37,000; Depreciation charged ₹ 32,000; Provision for tax debited to Statement of
Profit & Loss ₹ 44,000; Dividend Paid ₹ 20,000; Profit on Sale of asset credited ₹
15,000 and Goodwill amortized ₹ 25,000.
3. Compute "Operating ratio" and "Operating profit ratio" from the following: Cost of
goods sold 3/4 of net sales
Income tax = 20% of net profit before tax.
Administrative expenses = ₹1,00,000
Net income after tax = ₹2,40,000
Selling expenses = ₹ 50,000
Other Income = ₹ 50,000.
Or
Name the ratio that you would calculate in each of the following cases to indicate:
(a) The ability of the company to meet its current obligations.
(b) The rapidity with which accounts receivables are collected.
(c) The ability to meet interest (and other fixed charges) obligations.
(d) The profitability of equity funds invested in the firm.
(e) The dividend paid in relation to earnings per share.
Group-B
4.(a) Qaid Ltd has purchased an equipment for its manufacturing unit The price paid for
the equipment is ₹ 4,40,000 inclusive of GST of ₹ 79,200. The company gets a credit of GST
while calculating tax payable on finished goods sold.
The additional costs incurred are:
Freight ₹ 9,000
Customs duty ₹ 8,000
Installation expenses ₹ 6,000
Estimated cost of dismantling and removing the item would be ₹ 3,000.
After the equipment was put into use ₹ 22,000 was spent for cleaning the spare parts.

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Calculate the cost of PPE as per Ind AS - 16.

(b) From the following information relating to Simplex Ltd., calculate Basic EPS and Diluted
EPS as per Ind AS 33:
Net profit (after tax) for the current year ₹ 3,00,00,000
No. of outstanding equity shares 50,00,000 shares of ₹ 10 each

No. of 10% Fully Convertible Debentures 50,000 debentures of ₹ 100 each

12% Cumulative Preference shares 50,000 shares of ₹ 100 each

Corporate tax rate 30%

Each fully Convertible Debenture will be converted into 8 equity shares of ₹10 each.

5. From the following figure of the Balance sheet of L & T Ltd., prepare a
Comparative Balance Sheet:
Particulars 31.03.2020 (₹) 31.03.2021 (₹)
Equity Share Capital 4,00,000 5,00,000
Preference Share Capital 2,00,000 1,00,000
10% Debenture 1,50,000 1,00,000
Reserve and Surplus 40,000 70,000
Long-term Loan 2,00,000 3,00,000
Investment 2,20,000 2,50,000
Fixed Assets 5,70,000 6,30,000
Current Assets 2,80,000 3,10,000
Current Liabilities 80,000 1,20,000
Or
From the trend % supplied below, prepare a comparative statement of current
assets in absolute value taking 2013 as the base year:
Trend percentage Corresponding value of current assets
2014 2015 2016 2016 (Rs.)
120 130 150 7,200-Debtors
130 140 200 13,600 - Raw materials
160 220 250 8,000-W.I.P
175 250 300 9,000-Cash at bank
110 150 175 3,500 - Finished goods
Group-C

6. The Balance Sheet of H. Ltd. and S. Ltd. as on 31.3.2019 are as follows:

Note H. Ltd. (₹) S. Ltd. (₹)
Particulars No
I. EQUITY and LIABILITIES:
1. Shareholder's Fund
(a)Share Capital 1 1100000 540000
(b) Reserve & Surplus 2 480000 300000
2. Current Liabilities:
(a) Trade Payables 3 220000 160000
Total 1800000 1000000

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 II. Assets:
1.Non-Current assets:
(a) Property, Plant and Equipment 820000 540000
(i) Intangible Assets (Goodwill) 80000 60000
(b) Non-Current Investment 5 480000 -
2.Current Assets:
(a)Inventories (Stock) 200000 180000
(b) Trade Receivables (Debtors) 40000 150000
(c) Cash and Cash Equivalents (cash at Bank) 180000 60000
(d)Other Current assets (Preliminary Expenses) - 10000
Total 1800000 1000000
Notes Of Accounts
Particulars H. Ltd. (₹) S. Ltd. (₹)
1. Share Capital:
(a) Subscribed and fully paid up:
(i) Preference Share Capital (Of ₹100 each) 300000 140000
(ii) Equity Share Capital of ₹100 each 800000 400000
1100000 540000
2. Surplus:
(a) General Reserve (31.03.18) 200000 120000
(b) Balance in Statement of Profit & Loss 280000 180000
480000 300000
3. Trade Payables:
(a) Creditors 220000 120000
(a) Bills Payable - 40000
220000 160000
4. Property, Plant and Equipment- Tangible Assets:
(a) Land & Building 500000 360000
(b) Plant and Machinery 320000 180000
820000 540000
5. Non-Current Investments:
3,000 shares in S. Ltd. Purchased on 30.9.18 480000 -
480000 -
Further Information:
(a) Balance in Statement of Profit and Loss Account of S. Ltd. showed a credit balance of
₹1,00,000 on 1.4.18.
(b) A dividend of 15% was paid by S. Ltd. in October 2018 for the year 2017-18 which was
credited to Statement of Profit and Loss of H. Ltd.
(c) Creditors of S. Ltd. includes ₹40,000 for goods supplied by H. Ltd. Also included in the
stock of S. Ltd. are goods valued ₹16,000 which were supplied by H. Ltd. at a profit of 25%
on sales.
(d) Plant and Machinery were revalued at ₹3,00,000 on acquisition date which stood in the
books ₹2,00,000 on 1.4.2018.
(e) There is a contingent liability of ₹2,000 for pending suit in the books of H. Ltd.
Prepare a consolidated Balance Sheet of H. Ltd. and its subsidiary S. Ltd. as on
31.03.2019.
7. Following are the Liabilities and Assets of Andhra. Ltd. as on 31.03.2017 and
31.03.2018:

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 Balance Sheet of XYZ Ltd.
31.03.17 31.03.18
Particulars (₹) (₹)
I. EQUITY and LIABILITIES:
1. Shareholder's Fund:
(a) Equity Share of ₹10 each fully paid 800000 1000000
(b) Surplus:
Securities Premium 100000 120000
General Reserve 360000 440000
Profit and Loss Balance 220000 296000
2. Non-Current Liabilities: -
Bank Loan 420000 460000
3. Current Liabilities:
Trade Payables: 166000 216000
Provision for Tax 200000 210000
Total 2266000 2742000
II. Assets:
1.Non-Current assets:
(a) Property, Plant and Equipment- Tangible Assets 1700000 2060000
(b) Non-Current Investments 96000 124000
2.Current Assets:
Inventories 240000 280000
Trade Receivables 160000 190000
Cash and Cash Equivalents 70000 88000
Total 2266000 2742000
Following further information for the year 2017-18 are also given:
(i) Dividend paid during the year ₹75,000.
(ii) The company sold part of the fixed asset for ₹24,000 (W.D.V. ₹20,000). Depreciation
charged on fixed assets during the year ₹1,40,000.
(iii) Investment costing ₹16,000 were sold during the year for ₹19,000.
(iv) Interest on investment received ₹7,000 and credited to Profit & Loss Account
(v) Interest accrued and paid during the year on Bank Loan ₹ 24,000.
(vi) Income Tax provided during the year ₹1,98,000.
You are required to prepare:
(a) The schedule of changes in working capital from 31.3.2017 to 31.3.2018 and
(b) Fund Flow Statement of Andhra Ltd. for the year ended 31.3.2018.

Or

Presented below are the Balance Sheets of Joy Ltd. as at March 2019 and 2018.
Note 31.03.2019 31.03.2018
Particulars No (₹) (₹)
I. EQUITY and LIABILITIES:
1. Shareholder's Fund:
(a) Share Capital
(i) Equity Share Capital (₹10 each fully paid) 4300000 4000000
(b) Reserve and Surplus 640000 980000
2. Non-Current Liabilities:

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 (a) Long term Borrowing
(i) Debenture 2050000 2200000
3. Current Liabilities:
(a) Trade Payables 650000 800000
(b) Short term Provision
(i) Provision for Taxation 125000 100000
Total 7765000 8080000
II. Assets:
1.Non-Current assets:
(a) Property, Plant and Equipment 1 5100000 5200000
2.Current Assets:
(a) Inventories 1400000 1550000
(b) Trade Receivables 800000 650000
(c) Cash and Cash Equivalents 400000 600000
(d) Other Current Assets
(i) Prepaid Expenses 65000 80000
Total 7765000 8080000
Notes Of Accounts
31.03.19 31.03.18
Particulars (₹) (₹)
1. Property, Plant and Equipment
(a) Land 1500000 1800000
(b) Buildings 2500000 2500000
Less: Provision for Depreciation 6000000 500000
1900000 2000000
(c) Equipments 2000000 1600000
Less: Provision for Depreciation 300000 200000
1700000 1400000
Total (a + b + c) 5100000 5200000
Additional information:
i. Land was sold at a profit of ₹50,000.
ii. Dividend paid during the year ₹ 4,50,000.
iii. Net Profit for the year ₹1,80,000.
iv. Equipment costing ₹6,00,000 was purchased and costing ₹2,00,000 with a book
value of ₹40,000 was sold for ₹30,000.
v. Debenture were redeemed at face value by issuing shares at par.
vi. Amount transferred to Provision for Taxation during the year ₹1,60,000.
Prepare a Cash Flow Statement as per AS 3 for the year ended March 31, 2019
8. Preparation of Profit & Loss A/c and Balance Sheet out of Accounting Ratios.
From the following accounting ratios and other information given below, prepare a Trading
Account, Profit and Loss Account and Balance Sheet of an enterprise for the year ended on
31st March 2019:
G. P. Ratio 25%
Net Profit/Sales 20%
Stock Turnover Ratio 10
Net Profit/Capital 1/5

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Capital/Total Liabilities 1/2
Non-Current Assets/Capital 5/4
Non-Current Assets/Total Current Assets 5/7
Non-Current Assets ₹ 10,00,000
Closing Stock ₹ 1,00,000
Or
From the following particulars, prepare the Balance Sheet of Mohan Ram Ltd.
Current Ratio 2
Working Capital ₹ 4,00,000
Capital Block to Current Assets 3:2
Non-Current Assets to Turnover 1:3
Sales Cash/Credit 1:2
Creditors Velocity 2 months
Stock Velocity 2 months
Debtors Velocity 3 months
Capital Block:
Net Profit 10% of turnover
1
Reserve 2 % of turnover
2
Debentures / Share Capital
Gross Profit Ratio - 25% (to sales) 1:2

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