Analysis of Financial Statements — Accountancy STD 12 Commerce — Question

Inventory Turnover Ratio 5 times; Cost of Revenue from Operations (Cost of Goods Sold) ₹ 18,90,000. Calculate Opening Inventory and Closing Inventory if Inventory at the end is 2.5 times more than that in the beginning.

Pass necessary journal entries for the following transactions in the books of Gopal Ltd:

1. Purchased furniture for ₹ 2,50,000 from M/s Furniture Mart. The payment to M/s Furniture Mart was made by issuing equity shares of ₹ 10 each at a premium of 25%.
2. Purchased a running business from Aman Ltd. for a sum of ₹ 15,00,000. The payment of ₹ 12,00,000 was made by issue of fully paid equity shares of ₹ 10 each and balance by a bank draft.

The assets and liabilities consisted of the following:

Plant ₹ 3,50,000; Stock ₹ 4,50,000; Land and Building ₹ 6,00,000; Sundry Creditors ₹ 1,00,000.

How are the following items shown while preparing Balance Sheet of a company:

1. Surplus, i.e., Balance in Statement of Profit and Loss (Dr.).
2. Interest accrued and due on Debentures.
3. Computer Software under development.
4. Interest accrued on Investment?

Why is analysis of financial statements important to Creditors?

Luxury Cosmetics Ltd. issued 30,000, 9% debentures of ₹ 500 each at a discount of 4%, redeemable at a premium of 5% after 4 years payable as: ₹ 200 on application and balance on allotment. Record necessary entries for issue of debentures.

Can the debentures be issued for consideration other than cash? Give their journal entries.

Alka Ltd. issued 5,000, 10% Debentures of ​₹ 1,000 each at a discount of 10% redeemable at a premium of 5% after 5 years. According to the terms of issue ​₹ 500 was payable on application and the balance amount on allotment of debentures. Record necessary entries regarding issue of 10% Debentures.

₹ 3,00,000 is the cost of Revenue from Operations (Cost of Goods Sold), Inventory turnover 8 times; Inventory at the beginning is 2 times more than the inventory at the end. Calculate the values of Opening & Closing Inventory.

State any two items that are included in the following major heads under which liabilities of a company are shown:

1. Reserves and Surplus.
2. Long-term Borrowings.
3. Short-term Borrowings.
4. Other Current Liabilities.

Following particulars are obtained from the books of Assam Tea Ltd. as at 31st March, 2018:
Net Profit after Interest and Tax= ₹ 1,80,000.
Tax Rate = 40%
Calculate Return on Investment.