From financial statement analysis the creditors are specially interested to know ____________
- ✓Liquidity
- BProfits
- CSale
- DShare capital
Answer: A.
View full solution →111 questions across 7 question groups — pick any mix to generate a Book Keeping & Accountancy paper with step-by-step answer keys.
Select the correct option (MCQ)
17 Q→02State whether the following statements are true or false with reasons
12 Q→03Write a word/phrase/term which can substitute the following statement.
16 Q→04Answer in One Sentence
19 Q→05Do as instructed
33 Q→06do as per instruction
10 Q→07Do as instructed
4 Q→One sample from each question group in this chapter. Select any group above to see the full set with answer keys.
Answer: A.
View full solution →Answer: A.
View full solution →Answer: B.
View full solution →Answer: A.
View full solution →Answer: A.
View full solution →| Liabilities | $1^{st} $ April 2018 (₹) | $31^{st}$ March 2019 (₹) | Assets | $1^{st}$ April 2018 (₹) | $31^{st}$ March 2019 (₹) |
| Capital | 1,48,000 | 1,49,000 | Stock | 25,000 | 22,000 |
| Sundry Creditors | 36,000 | 41,000 | Debtors | 35,000 | 38,400 |
| Long Term Loan | 30,000 | 45,000 | Cash | 4,000 | 3,600 |
| Buildings | 50,000 | 55,000 | |||
| Machinery | 80,000 | 86,000 | |||
| Land | 20,000 | 30,000 | |||
| 2,14,000 | 2,35,000 | 2,14,000 | 2,35,000 |
| Particulars | Amount (₹) |
| Opening Cash Balance | 30,000 |
| Closing Cash Balance | 34,000 |
| Decrease in Stock | 16,000 |
| Increase in Bills Payable | 24,000 |
| Sale of fixed Assets | 60,000 |
| Payments of long term Loan | 1,00,000 |
| Net Profit for the year | 4,000 |
| Particulars | 31.1.2019 (₹) | 31.3.2020 (₹) |
| Net Sales | 5,00,000 | 6,00,000 |
| Less cost of goods sold | 3,00,000 | 3,60,000 |
| Gross Profit | 2,00,000 | 2,40,000 |
| Less: Office and Administrative expences | 55,000 | 72,000 |
| Selling and Distribution Expense | 52,500 | 66,000 |
| Net Profit | 92,500 | 1,02,000 |
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Equity Share Capital | 9,00,000 | Fixed Assets | 9,00,000 |
| Preference Share Capital | 80,000 | Investment | 1,50,000 |
| Reserve & surplus | 1,50,000 | Current Assets | 7,30,000 |
| Secured Loans | 3,00,000 | ||
| Unsecured Loans | 2,00,000 | ||
| Current Liabilities | 1,50,000 | ||
| 17,80,000 | 17,80,000 |
| Particulars | (₹) | Particulars | (₹) |
| To Opening Stock | 40,000 | By Sales | 4,20,000 |
| To Purchases | 2,30,000 | By Closing Stock | 60,000 |
| To Wages | 8000 | ||
| To Gross Profit c/d | 2,02,000 | 4,80,000 | |
| 4,80,000 | 2,02,000 | ||
| To Admin Exp. | 12,000 | By Gross Profit b/d | 2,02,000 |
| To Selling and Distribution | 14,000 | ||
| Expense | |||
| To Loss on sale of plant | 40,000 | ||
| To Net Profit | 1,36,000 | ||
| 2,02,000 | 2,02,000 |
| Particulars | 2018(₹) | 2019(₹) |
| Sales | 6,00,000 | 4,50,000 |
| Sales Return | 1,00,000 | 50,000 |
| Gross Profit ratio | 40% | 50% |
| Office and Admin Expenses | 50,000 | 40,000 |
| Selling and Distribution Expenses | 50,000 | 40,000 |
| Other income | 25,000 | 15,000 |
| Other Expenses | 5,000 | 5,000 |
| Tax rate | 50% | 50% |
Comparative Balance Sheet
From the following Balance Sheet of Noha Textiles Limited prepare comparative Balance Sheet and comment upon the changes.
Balance Sheet as on 31.3.2018 & 31.3.2019
| Liabilities | 31.3.2018 (₹) | 31.3.2019 (₹) | Assets | 31.3.2018 (₹) | 31.3.2019 (₹) |
| Current Liabilities | 2,00,000 | 4,00,000 | Fixed Assets Less Accumulated | 12,00,000 | 18,00,000 |
| Reserves | 3,00,000 | 2,00,000 | depreciation | 20,000 | 3,00,000 |
| 12% Bank loan | 5,00,000 | 8,00,000 | 10,00,000 | 15,00,000 | |
| Share Capital | 5,00,000 | 10,00,000 | current assets | 5,00,000 | 9,00,000 |
| 15,00,000 | 24,00,000 | 15,00,000 | 24,00,000 |
| Liabilities | 31-3-2019 (₹) | 31-3-2020 (₹) | Assets | 31-3-2019(₹) | 31-3-2020 (₹) |
| Share Capital | 2,50,000 | 3,70,000 | Fixed Assets | 3,50,000 | 5,70,000 |
| Reserve and Surplus | 60,000 | 1,00,000 | Investment | 1,20,000 | 1,70,000 |
| Secured Loans | 1,00,000 | 1,60,000 | Current Assets | 1,30,000 | 1,20,000 |
| Unsecured Loans | 90,000 | 1,40,000 | |||
| Current Liabilities | 1,00,000 | 90,000 | |||
| 6,00,000 | 8,60,000 | 6,00,000 | 8,60,000 |
You are required to prepare Comparative Balance Sheet of Varun Company Ltd. as on 31.3.2019 and 31.3.2020.
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