Tools for Financial Analysis: Comparative Statements — Accountancy STD 12 Commerce — Question

When Debt to Equity Ratio is 2, state giving reason, whether this ratio will increase or decrease or will. have no change in each of the following cases:

1. Sale of Land (Book value ₹ 4,00,000) for ₹ 5,00,000.
2. Issue of Equity Shares for the purchase of Plant and Machinery worth ₹ 10,00,000.
3. Issue of Preference Shares for redemption of 13% Debentures, worth ₹ 10,00,000.

Best Barcode Ltd. took a loan of ₹ 5,00,000 from a bank giving ₹ 6,00,000; 9% Debentures as collateral security. Pass journal entries regarding issue of debentures, if any, and show this loan in the Balance Sheet of the company.

A Ltd. issued 20,000 Equity Shares of ₹ 10 each at a premium of ₹ 5 per share, payable as ₹ 7 (including premium) on application , ₹ 5 on allotment and the balance after three months of allotment.
A shareholder to whom 200 shares were allotted failed to pay the allotment and call money and his shares were forfeited. 160 of the forfeited shares were reissued for ₹ 1,600.
Give necessary entries in company's journal and the Balance Sheet.

The Balance Sheet of Virendra Paper Ltd. as at 31st March, 2017 is given below: Notes to Accounts:
Additional Information:

1. Interim Dividend of ₹ 75,000 has been paid during the year.
2. Debenture Interest paid during the year ₹ 27,000.

You are required to prepare Cash Flow Statement.

From the following data, calculate:

1. Gross Profit Ratio.
2. Operating Ratio.
3. Net Profit Ratio.
4. Inventory turnover Ratio.
5. Current Ratio.

XYZ Ltd. invited applications for 10,000 shares of ₹ 100 each payable as follows: ₹ 20 on application, ₹ 30 on allotment, ₹ 20 on first call and the balance on final call.
All the shares were applied and allotted. All the money was duly received. You are required to journalise these transactions.

The Orient Company Limited offered for public subscription 20,000 equity shares of ₹ 10 each at a premium of 10% payable at ₹ 2 on application; ₹ 4 on allotment including premium; ₹ 3 on First Call and ₹ 2 on Second and Final call. Applications for 26,000 shares were received. Applications for 4,000 shares were rejected. Pro-rata allotment was made to the remaining applicants. Both the calls were made and all the money were received except the final call on 500 shares which were forfeited. 300 of the forfeited shares were later on issued as fully paid at ₹ 9 per share. Give journal entries and prepare the balance sheet.

1. Fill in the missing figures in the following Common Size Balance Sheet:

2. Also calculate the Proprietary Ratio.

Eastern Company Limited, having an authorised capital of ₹ 10,00,000 divided into shares of ₹ 10 each, issued 50,000 shares at a premium of ₹ 3 per share payable as follows:

On Application	₹ 3 per share;
On Allotment (including premium)	₹ 5 per share;
On first call (due three months after allotment) and the balance as when required.	₹ 3 per share;

Applications were received for 60,000 shares and the directors allotted the shares as follows:

1. Applicants for 40,000 shares received in full.
2. Applicants for 15,000 shares received an allotment of 8,000 shares.
3. Applicants for 5,000 shares received 2,000 shares on allotment , excess money being returned.

All amounts due on allotment were received.
The first call was made and the money was received except on 100 shares.
Give journal and cash book entries to record these transactions of the company. Also prepare the Balance Sheet of the company.

X Ltd. issued 50,000 shares of ₹ 10 each at a premium of ₹ 2 per share payable as follows:
₹. 3 on Application
₹ 6 on Allotment (including premium) and
₹ 3 on call.
Applications were received for 75,000 shares and pro-rata allotment was made as follows:
To the applicants of 40,000 shares, 30,000 shares were issued and for the rest 20,000 shares were issued. All moneys due were received except the ‘allotment and call money from Ram who had applied for 1,200 shares (out of the group of 40,000 shares). All his shares were forfeited. The forfeited shares were re-issued for ₹ 8 per share fully paid-up.
Pass necessary journal entries for the above transactions.