Cash Flow Statement — Accountancy STD 12 Commerce — Question

With the help of the given information, calculate any three of the following ratios:

1. Operating ratio.
2. Quick ratio.
3. Working capital turnover ratio.
4. Debt equity ratio.

Information: Equity Share Capital ₹ 50,000; 12% Preference Share Capital ₹ 40,000; 12% Debentures ₹ 30,000; General Reserve ₹ 40,000; Revenue from Operations ₹ 3,00,000; Opening Inventory ₹ 20,000; Purchases ₹ 1,40,000; Wages ₹ 30,000; Closing Inventory ₹ 40,000; Selling and distribution expenses ₹ 18,000; Other Current Assets ₹ 1,00,000 and Current Liabilities ₹ 60,000.

XYZ Ltd. invited applications for 40,000 equity shares of ₹ 100 each at a discount of 6%. The amount was payable as follows: Application for 60,000 shares were received. Applications for 10,000 shares were rejected and shares were allotted on pro-rata basis to remaining applicants. Excess application money received on application and allotment was adjusted towards sums due on first and final call. The calls were made. A shareholder, who applied for 50 shares, failed to pay the first and final call money. His shares were forfeited. All the forfeited shares were re-issued at ₹ 97 per share fully paid up.
Pass necessary journal entries for the above transactions in the books of XYZ Ltd.
OR
AB Ltd. invited applications for issuing 75,000 equity shares of ₹ 100 each at a premium of ₹ 30 per share. The amount was payable as follows: Applications for 1,27,500 shares were received. Applications for 27,500 shares were rejected and shares were allotted on pro-rata basis to the remaining applicants. Excess money received on application and allotment was adjusted towards sums due on first and final call. The calls were made. A shareholder, who applied for 1,000 shares, failed to pay the first and final call money. His shares were forfeited. All the forfeited shares were reissued at ₹ 150 per share fully paid up.
Pass necessary journal entries for the above transactions in the books of AB Ltd.

X company issued ₹ 10,00,000 shares for subscription of ₹ 100 each at a premium of ₹ 20 per share payable as:
₹ 10 per share on application,
₹ 40 per share and ₹ 10 premium on allotment, and
₹ 50 per share and ₹ 10 premium on final payment.
Over-payments on application were to be applied towards amount due on allotment and over-payments on application exceeding amount due on allotment was to be returned. Issue was oversubscribed to the extent of 13,000 shares. Applicants for 12,000 shares were allotted only 1,000 shares and applicants for 2,000 shares were sent letters of regret. All the money due on allotment and final call was duly received.
Pass necessary entries in the company's books to record the above transactions. Also, prepare company's Balance Sheet on completion of the above transactions.

Z Ltd. was registered with an authorised capital of ₹ 10,00,000 divided into 10,000 shares of ₹ 100 each. The Company offered 5,000 of these shares to the public, which were payable ₹ 25 per share on application, ₹ 50 per share on allotment and the balance three months later. Applications for 7,100 shares were received on which the directors allotted as follows:

Applications for 4,000 Shares	Full
Applications for 3,000 Shares	1,000
Applications for 100 Shares	Nil

₹ 1,85,000 was realised on account of allotment money (excluding the amount carried from application money) and ₹ 1,15,000 on account of call. The Directors decided to forfeit those shares on which allotment money was overdue.
Show the entries in the company’s books.

Prepare a common size Balance Sheet and comment on the financial position of A Ltd. and B Ltd. The Balance Sheets of A Ltd. and B Ltd. as at 31.3.2018 are given below:

Assuming that Debt to Equity Ratio is 0.5 : 1, state, giving reasons, whether this ratio will increase or decrease or will have no change in each one of the following cases:

1. Issue of Preference Shares for Cash.
2. Issue of Debentures for Cash
3. Issue of Bonus Shares.
4. Redemption of Debentures for Cash.
5. Conversion of Debentures into Equity Shares.
6. Purchase of a Fixed Asset for Cash.
7. Purchase of a fixed Asset by taking long-term loan.
8. Sale of Fixed Asset (Book value ₹ 5,00,000) for ₹ 4,00,000
9. Sale of Fixed Asset (Book value ₹ 2,00,000) at a profit of ₹ 50,000.

Prepare a Comparative Statement of Profit from the following information:

Discuss the process for the allotment of shares of a company in case of over subscription.

Following was the Balance Sheet of M.M. Ltd. as at 31st March, 2015:
Notes to Accounts:

Additional Information:

1. 12% Debentures were redeemed on 31st March, 2015.
2. Tax ₹ 70,000 was paid during the year.

Prepare Cash Flow Statement.

Following particulars are obtained from the books of A Ltd. as on 31.3.2018

You are required to calculate:

1. Working Capital Ratio.
2. Debt Equity Ratio.
3. Trade Receivables Turnover Ratio if credit revenue from operations are ₹ 7,20,000.