Question
Convert the following income statement into Common Size Statement and interpret the changes in 2005 in the light of the conditions in 2004.
✓
Answer
Comment: Company has reduced its cost and expenses which has resulted in increase in income from operations and net profit.
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A share of ₹ 100 issued at a premium of ₹ 10 on which ₹ 80 (including premium) was called and ₹ 60 (including premium) was paid, has been forfeited. This share was afterwards reissued as fully paid-up for ₹ 70. Give Journal entries to record the above.
Give journal entries for forfeiture and re-issue of shares:
X Ltd. forfeited 300 shares of ₹ 100 each, ₹ 75 called-up, issued at 10% premium (to be paid at the time of allotment) for non-payment of allotment money of ₹ 30 per-share (including premium) and first call of ₹ 20 per share Out of these, 100 shares were re-issued as fully paid-up in such a way that ₹ 3,100 were transferred to capital reserve.
X Ltd. forfeited 300 shares of ₹ 100 each, ₹ 75 called-up, issued at 10% premium (to be paid at the time of allotment) for non-payment of allotment money of ₹ 30 per-share (including premium) and first call of ₹ 20 per share Out of these, 100 shares were re-issued as fully paid-up in such a way that ₹ 3,100 were transferred to capital reserve.
Prepare the format of income statement and explain its elements.
The motto of Yash Ltd., an advertising company is ‘Service With Dignity’. Its management and work force is hard-working, honest and motivated. The net profit of the company doubled during the year ended $31-3-2014$. Encouraged by its performance company decided to give one month extra salary to all its employees. Following is the Comparative Statement of Profit and Loss of the company for the years ended $31st$ March $2013$ and $2014$.
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- Calculate Net Profit Ratio for the years ending $31^{st}$ March, $2013$ and $2014$.
- Identify any two values which Yash Ltd. is trying to propagate.
From the following extracts of Balance Sheets of Exe Ltd., calculate Cash Flow from Financing Activities:
Additional information:
Additional information:
- Equity Shares were issued on 31st March, 2018.
- Interim dividend on Equity Shares was paid @ 15%.
- Preference Shares were redeemed on 31st March, 2018 at a premium of 5%. Premium paid was debited to Statement of Profit and Loss.
- 12% Debentures of face value ₹ 1,00,000 were issued on 31st March, 2018.
Calculate Inventory Turnover Ratio from the following:
Following information is related to ABC Ltd.: 
Notes to Account:
Notes to Account:
|
Other Informatiom:
|
Balance as on 31st march, 2018 (₹)
|
Balance as on 31st march, 2017 (₹)
|
|
Trade paybles
|
2,78,000
|
2,50,000
|
|
Trade receivables
|
4,52,000
|
4,15,000
|
|
inventories
|
3,00,000
|
2,84,000
|
|
Office expenses Outstanding.
|
-
|
5,000
|
|
Selling expenses Outstanding.
|
25,000
|
22,000
|
Under which major headings and sub-headings will the following items be shown in the Balance Sheet of a company as per Schedule VI Part I of the Companies Act, 1956:
- Balance of the Statement of Profit and Loss.
- Loan of ₹ 1,00,000 payable after three years.
- Short-term deposits payable on demand.
- Loose tools.
- Trademark.
- Land.
- Cash at bank.
- Trade payables.
On March 31st, 2018 Ramesh and Co. indicated a profit of ₹ 1,25,000, after considering the following:
Additional Information:
Ascertain the net cash (cash flow) from operating activities.
Additional Information:
Ascertain the net cash (cash flow) from operating activities.Assuming that the Debt-Equity ratio is 2, State giving reasons whether this ratio would increase, decrease or remain unchanged in the following cases:
- Purchase of fixed asset on a credit of 2 months.
- Purchase of fixed asset on a long term deferred payment basis.
- Issue of new shares for cash.
- Issue of bonus shares.
- Sale of fixed asset at a loss of ₹ 3,000.