Financial Accounts - Problems[1]

Financial Accounting – Induction

Identify the type of Account in the following Cases: 1. 2. 3. !. #. '. (. *. . 10. 11. 12. 12. 13. 1!. 1#. 1#. 1'. 1(. 1*. 1*. 1. 1. 20. 20. 21. 21. 22. 23. 2!. 2#. 2'. 2(. 2*. 2*. 2. 2. 30. 30.

Cash Account Proprietor’s Capital Account Friend’s Clu Account "oods Account $iscount %e %ecei&ed Account $iscount Allowed Account Co))ission Pa Paid Account +and , uilding Account an/ of India Current Account ra&eling Account Pla Plant , a achinery Ac Account $rawi $rawing ngss Acc Accou ount nt 4wn 4wner er’s ’s fu fund ndss with withdr draw awal al fro fro) ) usiness5 ad $ets Account Creditors Account Pri Print ntiing , 6ta 6tati tion oneery Acc Accou ount nt "hatge Pa Patil Account Carriage 4ut 4utwar ward Ac Account uni uniccipal ipal a7es 7es Acc ccou ount nt 8ir 8irlos los/ar /ar Co Co)pan )pany y’s Ac Accou count 9ati 9ation onal al $ai $airy ry $e&e $e&elo lop) p)en entt oa oard rd’s ’s Acc ccou ount nt In&e In&est st in Fi7e Fi7ed d $ep $epos osit itss of of 6ta 6tate te an/ an/ of Indi India a Patents Ac Account +oan to to r rs. 6o 6o)an Account "old Account Purchase Ac Account 6ales Account %ates , a7es 7es Account %epai pairs to achi achine nerry Acc Accou ount nt $i&i $i&id dend %ec eceei&ed &ed Accoun ount In&e In&esst)e t)ent in 6har hares of of ; ;< +td +td..

Financial Accounting – Induction

Analyse the following ransactions regarding the effects= Accounts affected= ype of Accounts and the $eit , Credit >ffect. ?@  1 Also Pass the ?ournal >ntries for the sa)e: -

Brite the oo/s of Accounts for usiness started y "anesh 1. "anesh started usiness with Cash %s. #=000- , Furniture %s. 2=0002. Purchased goods fro) ahesh stores %s. 1=#00- one )onth’s credit 3. $eposited %s. 3=000- in an/ of India Account Account !. 6old goods for Cash for %s. #00#. Purchased stationery fro) +a7)i 6tores for Cash %s. 200'. 6old goods to $e&i on credit %s. 200(. Purchased goods fro) Araha) for %s. 2=000- half a)ount paid in cash and alance on credit for two )onths *. Purchased )achinery on credit fro) 8irlos/ar , co. %s. !=000. Paid to r. r. $alal %s. 1#0 -= %ent towards "anesh’s residential flat 10. Paid to r. %a) as co))ission y cheDue of an/ %s. 10011. Bithdrawn %s. #00 fro) the an/ Account 12. Paid con&eyance charges for official wor/ to r. "anesh 13. "anesh introduced further capital of %s. 10=000 1!. Purchased goods fro) r. adhu of three )onth credit %s. (=#00 1#. 6old these goods to %a)esh for %s. 1#=000 y recei&ing one third in cash and alance y cheDue= the cheDue was deposited in an/.

Financial Accounting – Induction

?@ - 2 Also Pass the ?ournal >ntries for the sa)e: -

Brite the oo/s of Accounts for usiness y Asho/ 8a)at for the )onth of Feruary’0! 1. Co))enced usiness with cash %s. #=000 and achinery 3=000 3. ought goods fro) $eepa/ on Credit for %s. #=2#0 !. 6old goods for Cash %s. 1=2(0 #. Paid into an/ %s. 2=000 (. Purchase furniture against cheDue %s. (00 . 6old goods to Anand %s. 20 1!. 6old goods for cash %s. 1=#0 1'. Paid to $eepa/ on account %s. 1=000 1. Paid for +ife Insurance pre)iu) %s. 2*0 21. Paid to %a)anand for Co))ission %s. 1#0 23. %ecei&ed fro) Anand %s. 00 in full , Final settle)ent 2#. Purchase 6hares of ata co. %s. #00 and paid y cheDue 2(. Paid telephone ill of office %s. 320 2*. Paid to $eepa/ %s. !=200 in Full settle)ent

Financial Accounting – Induction

?@ - 3 ?ournalise the following ransactions %ecord the following transactions in the oo/s of @inod for April’ 0! 1. 6tarted usiness with cash %s. 2#=000 2. ought goods fro) 6achin at # E rade $iscount %s. #=000!. Paid to 6anay for office %ent %s. 1=000 (. 6old goods for cash %s. (00 . %eturned goods to 6achin %s. #00 gross5 12. 6old goods to Pra&in at # E rade $iscount for %s. 1=#00 1(. Paid to 6achin on Account %s. 1=#00 20. 6old goods for cash %s. !00 22. %ecei&ed fro) Pra&in %s. 1=!00 2#. Paid 6alaries in Cash %s. 1=200 2'. Placed order for goods of %s. 10=000 to %oy to e7ecute ne7t )onth 2(. Purchased typewriter of %s. 3=000 and paid %s. 200 for 4ctroi 2*. "oods purchased for cash %s. 1=000 2. $istriuted free sa)ples %s. 200 30. Paid to 6achin %s 2000 on account

Financial Accounting – Induction

?@ - ! ?ournalise the following in the oo/s of 6hri."andhi for the )onth of August 11 1. Co))enced usiness with cash %s.1#000 and goods %s. (000 3. ought goods for cash %s. 1#00 !. 6old goods for cash %s. 1!(0 '. $eposited into an/ %s. #000 in $ena an/ and opened an/ AC *. Purchased furniture %s. 1*00 and paid for it y cheDue 12. Paid to ta7es and insurance %s. 3#0 1#. 6old goods to r. ehta %s. 3000 at #E trade discount 1(. ought goods fro) 6hri. "upta %s. #000 at 10E trade discount 22. %ecei&ed fro) 6hri. ehta %s 2#00 on account and supplied hi) goods worth %s. 1200 2#. Paid to 6hri. "upta %s.!000 on account 2(. "oods worth %s. 200 were distriuted as free sa)ples 2. 6old to r. ehta worth %s. #00 , paid %s. 30 on his ehalf  30. Paid for salaries and wages %s. *20

Financial Accounting – Induction

?@ - # ?ournalise the following ransactions for 6ep 0! 1. 6adanand orrowed %s. 20=000 fro) his friend At)anand and started usiness with that )oney. 2. Purchase goods fro) Pre)anand %s. (=000 at 10E rade discount and paid half of the a)ount to earn #E cash discount 3. rought personal furniture for office use %s. #=000. %epaired the sa)e for use y spending %s.(#0 #. 6old goods for cash %s. 3#0 (. 6i&anand’s order of goods for %s. #00 was e7ecuted and paid cartage of %s. !0 on his ehalf  . Paid for shares purchased %s. 2000 and ro/erage %s. 200 13. Paid office rent %s. 00 1#. ought goods for cash %s. 3=#00 1(. 6old goods to 6han/aranand for %s. 1='00 one )onth’s credit 1. 6han/aranand returned goods worth %s. 1#0 21. Paid aste , Co. for ad&ertise)ent %s. #00 2#. Paid life insurance pre)iu) %s. 300 and pre)iun for office insurance policy %s. #00 30. Paid telephone charges %s. 210

Financial Accounting – Induction

+edger preparation - 1 ?ournalise the following entries in the oo/s of 6han/ar , post the) in proper +edger accounts and alance the +edger Accounts in arch’0! 1. 6tated usiness with cash %s. 10=000 2. ought goods on credit fro) @ishnu %s. !=300 !. 6old goods for cash %s. '20 #. %eturned goods to @ishnu %s. 1#0 (. Paid for salaries %s. *00 10 6old goods to Anant %s. 1=(00 one )onth’s credit 12. ought goods for casg %s. #00 1#. Paid @ishnu %s. 2=#00 on account , further purchase %s. 1=#00 20. %ecei&ed fro) Anant %s. 1=#00 22. 6old goods to Anant %s. 1=#!0 2#. 6old goods for cash %s. !#0 2(. Paid for office rent %s. 300 30. Bithdrew for house hold e7penses %s. 2#0 31. 6toc/ of goods on hand %s. 3000

Financial Accounting – Induction

+edger Preparation - 2 >nter following transactions in the ledger accounts and alance the) 1. r. %awal started usiness - cash %s. 2#=000 , furniture %s. #=000 3. Purchase )otorcycle for usiness purpose %s. 1#=000 and the a)ount orrowed fro) an/ of aroda !. ought goods fro) %eddy on Credit %s. '=#00 (. 6old goods for cash %s. 2100 10. Paid to PC for office a7 %s. 2#0 12. 6old goods on credit to %oy %s. 2=#00 1#. Paid Indian >7press for ad&ertise)ent %s. #00 1. ought goods for cash %s. 1=200 21. 6old goods for cash %s. #0 23. Paid for carriage %s. !#0 2#. Paid for co))ission %s. 300 2(. Paid for %awal’s son’s college fees %s. 3#0 2*. 6old goods for cash %s. 200 2. Paid to %eddy on Account %s. 3=000 30. %ecei&ed fro) %oy %s. 2=000 on account 30. 6toc/ of goods on hand %s. 2=(00

Financial Accounting – Induction

+edger Preparation - 3 Prepare Cash Account= as it would appear fro) the following transactions of s A)adas for ay 200! 1. 4pening alance %s. 2=(#0 2. 6old goods for cash %s. 3=*00 3. ought goods for cash %s. 300 #. %ecei&ed %s. 2=#00 fro) 6hri. ahant in full settle)ent of his account ha&ing alance of %s. 2=#30 10. Paid to s 6har)a %s. 2=000 on account 12. 6old goods for cash %s. 1=#00 13. Paid salaries %s. #00 1#. Paid for rent %s. 200 21. %ecei&ed co))ission fro) 6hinde %s. 2#0 2#. Paid for ad&ertise)ent %s. 1#0 2(. Bithdrew or pri&ate e7penses %s. !00

Financial Accounting – Induction

rial alance  1 Prepare rial alance fro) he following alances gi&en in the oo/s of r. ?ohn as on 31.03.200# A)ount %s.5 Plant , achinery 32=000 $etors

22=000

Creditors

!0=(00

"oodwill

30='00

$iscount %ecei&ed

1=*00

$iscount Allowed

2=(00

Furniture

1!=300

6ales

2=30=000

Purchases

1=1(=000

Purchase %eturn

1=*00

6ales %eturn

3=100

Bages

22=!00

6alaries

10=200

Carriage Inward

1=!00

Carriage 4utward

2=300

+oan to r. 

20=000

Printing , 6tationery

3=#00

Ad&ertise)ent

!=*00

Cash in Gand

(0

an/ alance

1=230

an/ 4&erdraft

11=#00

Capital Account

1=00=000

+and

(=300

Financial Accounting – Induction

rial alance  2 Prepare rial alance fro) he following alances gi&en in the oo/s of r. 9ana as on 31.12.200!. Any difference )ay e transferred to 6uspense Account A)ount %s.5 Pre)ises

*#=000

4pening 6toc/

12=000

Purchases

2*=000

Cash in hand

00

ills Payale

1(=300

an/ +oan

2#=000

Capital Account Furniture

1=2#=000 12=000

6alaries

=000

Interest %ecei&ed

2=*00

In&est)ent

2*=000

6ales

*=200

Creditors

3'=!00

$iscount Allowed

1=300

Bages

20=!00

Plant , achinery

3*=#00

$etors

!1=300

ills %ecei&ale

11=200

Ad&ertise)ent

*=100

Financial Accounting – Induction

rial alance  3 Prepare rial alance fro) he following alances gi&en in the oo/s of r. 6apan as on 31.12.200!. Any difference )ay e transferred to 6uspense Account A)ount %s.5 +and , uilding

1=!0=000

Capital Account

1=(0=000

6ales

2=0#=000

Creditors Carriage Inward Purchases

33=00 #=200 1=0(=000

4pening 6toc/

32=*00

$etors

!#=300

Carriage 4utward

2=00

+oan fro) r. A)it

##=000

Bages

2*=000

an/ 4&erdraft

11=!00

Co))ission %ecei&ed

2=000

6alaries

1*=*00

Ad&ertise)ent

10=#00

6undry Inco)e

00

@ehicle >7penses

22=!00

@ehicles

!0=000

In&est)ents

2#=000

Financial Accounting – Induction

%ectification - 1 %ectify the following >rrors 1.

"oods worth %s. #=000- sold to r. A)ar recorded as purchases

2.

Bages of %s. !1=000- were posted to 6alaries Account

3.

6tationery of %s. #00- was wrongly posted to 6tationery Account as %s. #=000- only in +edger ut cash oo/ was correct.

!.

Interest recei&ed of %s. 310- was accounted as %s. 3=100-

#.

"oods of %s. 100- returned y us wrongly accounted in return inward account y the Accountant

'.

Carriage Paid y us of %s. !00- wrongly posted at credit ide of the Account. he Cash oo/ posting was correct.

(.

%eturn Inward oo/ was o&ercast y %s. 1=000-

*.

%eturn outward oo/ is undercast y %s. #00-

Financial Accounting – Induction

%ectification - 2 %ectify the following >rrors 1. achine purchased of %s.2#=000 was deited to Purchases Account 2. Bages on erection of achine of %s. 1=#00- were accounted as wages 3. aterial of %s. 2#=000 and wages of %s.11=000- for addition to uilding were deited to Purchases and wages Account !. +and acDuiring charges of %s. 10=*00 were deited to +egal >7penses #. Carriages on purchases of %s. #00 was deited to goods Account '. %s. 1=000- paid for repairs were deited to achinery Account (. 6alaries paid to r. A %s.1=#00- were deited to his Account *. $rawings of %s. (00 were deited to Capital Account . Purchase %eturn was credited to 6ales Ac of r.  for %s. 2=#0010. A pay)ent for tra&eling of %s. (00- was left out to e recorded

Financial Accounting – Induction

an/ %econciliation 6tate)ent - 1 Fro) the following details prepare an/ %econciliation 6tate)ent as on 30.0.12 in the oo/s of Pratap. he Cash oo/s showed %s. 1=2(0- in the an/ account 1.

CheDue paid in to an/ ut not collected upto 30.0.2 a)ounted to %s.1=2(0-

2.

CheDue of %s. #'0- issued to two creditors were not encashed y the) till date of alancing

3.

Interest of %s. 2#- paid y an/ and Charges of %s. 30- charged y an/ were not accounted in the Cash oo/

!.

an/ had collected interest of %s. 2#0- on our ehalf ut not infor)ed us efore closing.

#.

an/ had paid %s. (#0- directly fro) our account for unicipal a7es ut not infor)ed till date

'.

he cash oo/ total of pay)ent side was undercast y %s.1=000-

Financial Accounting – Induction

an/ %econciliation 6tate)ent  1 Fro) the following details prepare an/ %econciliation 6tate)ent as on 30.0'.0! in the oo/s of %ana. he an/ alance as per an/ records was %s. =(#0- credit 1.

CheDues of %s= !=200- were deposited efore 30.0'.0! ut %s. 1=#00- were realised in the account

2.

CheDues of %s. 3=(00- were issued efore 30.0'.200! ut were not presented y the Creditors

3.

A ill recei&ale due was collected y an/ for %s. 3=000- ut was not infor)ed to us efore date of closing

!.

an/ paid e)ership fees directly of %s.2#0- the ill is awaited

#.

an/ charges of %s. 30- were wrongly accounted as %s. 300- in the cash oo/ 

'.

Interest of %s. !#0- credited y an/ does not appear in Cash oo/ 

Financial Accounting – Induction

Final Accounts  1  A Following is the rial alance of 9a&in raders for the year ended as on 31 st arch 2002. Prepare the rading , Profit , +oss Account and the alance 6heet as on the date rial alance 9a)e of the Account %ent recei&ed 6ales Creditors an/ 4&erdraft ills Payale Capital 4pening 6toc/ Purchases Carriage Inward Bages "oodwill Free hold +and +eases hold land uilding Plant , achinery @ehicles Furniture Ad&ertising 6alaries 6tationery 4ffice >7penses an/ Charges Carriage 4utward Cash in hand $etors Interest on an/ o&erdraft

$eit %s5

(2=000 2=20=000 *=000 *0=000 30=000 '0=000 1=00=000 2=20=000 1=*0=000 (0=000 20=000 10=000 3*=000 *=300 !=100 100 3=(00 !00 12=000 10=000 11=!'='00

Credit %s5 10=000 #=12=000 #'='00 1=!0=000 23=000 !=0#=000

11=!'='00

Adust)ents: -

1. +ease to run for en ;ears 2. $epreciate P ,  1# E= @ehicles at 20 E and Furniture 10 E 3. 6toc/ as on 31.03.2002 was %s. #*=000 !. 4utstanding wages are %s. 3=*00 and salaries %s. !=#00 #. Interest for last Duarter %s. !='00 not recoded for yet. '. Pro&ide #E on detors as doutful dets  HHHHHHHHHHHHH 

Financial Accounting – Induction

Final Accounts  2  A Following is the rial alance of r. ; for the year ended as on 31 st arch 2003. Prepare Final Accounts rial alance 9a)e of the Account

$eit %s5

%ent recei&ed 6ales $etors , Creditors +oan fro) r. ; ta/en on 01.12.02 interest  12 E pa %eturn Inward , %eturn 4utward Capital 4pening 6toc/ Purchases Carriage Inward Bages Printing , 6tationery Insurance paid for one year 4n 01-10-20025 +and , uilding achinery Patents Ad&ertising 6alaries Carriage 4utward Cash in hand

30=000

2=000

Credit %s5 3=200 2=12=000 3#=000 1*=000 2=300 1=10=000

2#=000 *=000 10=000 21=000 1(=000 2=200 3#=000 '0=000 20=000 1!=000 32=000 12=000 2=300 3=*0=#00

3=*0=#00

Adust)ents: -

1. 6toc/ as on 31.03.2003 was %s. 32=000 , ar/et price %s. 2'=000 2. $epreciate P ,  10 E= Patents were re&alued at %s. 1*=200 3. A part of uilding is let out at %s. 1=000 per )onth !. 4utstanding wages are %s. 1=*00 and salaries %s. 3=*00 , a printing ill of %s. 1=200  HHHHHHHHHHHHH 

Financial Accounting – Induction

Final Accounts  3  A Following is the rial alance of r. Aditya for the year ended as on 31 st arch 2001. Prepare Final Accounts rial alance 9a)e of the Account 10 E In&est)ents Face @alue %s.32=0005 $etors Bages 4pening 6toc/ Purchases Carriage 4utward Carriage Inward %$$ Capital +oan 6ales Creditors achinery Furniture @ehicles 6alaries Ad&ertising , Pulicity %ent , a7es Postage , elephone charges Cash in Gand Cash at an/ I)port $uty Power Chares

$eit %s5

Credit %s5

30=!00 32=!00 1!=300 10=200 !0=*00 2=!00 3=200 1=200 1=!0=000 20=000 1=0*=000 *=!00 #0=000 1#=000 2!=000 1*=#00 =000 !=!00 2=*00 3=#00 12=300 1=00 2=#00  HHHHHHHHHHHHHHHHHHHHHHHHHHHHHH  2=((='00 2=((='00

Adust)ents: -

1. 6toc/ as on 31.03.2001 was %s. (=300 2. $epreciate P ,  y %s.#000= Furniture %s. 3=000= @ehicles %s. 1=000 3. Pro&ide #E for $outful dets !. 4utstanding wages are %s. 1=200 and salaries %s. 1=!00 #. In&est)ents are purchased on 01-0(-2000 '. Pro&ide interest on +oan at 12E (. "oods worth %s. 1=000 were ta/en y Aditya for personal use *. "oods worth %s.1=#00 distriuted as free sa)ples were not accounted  HHHHHHHHHHHHHHHHHHHH 

Financial Accounting – Induction

Final Accounts  !  A Following is the rial alance of r. ?ohn for the year ended as on 31 st arch 1. Prepare Final Accounts rial alance 9a)e of the Account $eit %s5 Credit %s5

6ales ills Payale Creditors Capital $etors ad $ets achinery Furniture 4pening 6toc/ Insurance achinery Installation charges Postage Purchases 6tationery , Printing 6alaries 4ffice >7penses Bages Factory >7p. Carriage Inward %oyalties on Production Cash in Gand an/ alance Carriage outward

1=(#=000 12=!00 22=000 (2=000 20=!00 *00 !!=000 1!=000 2*=000 1=*00 2=000 3='00 *=(00 12=#00 1*=300 !=300 12=*00 2=*00 3=(00 10=#00 (0 *=#10 2=00  HHHHHHHHHHHHHHHHHHHHHHHHHHHHHH  2=*1=!00

2=*1=!00

Adust)ents: -

1. Pro&ide %s. !00 as further ad dets 2. Pro&ide for # E on doutful dets and 2E discount on detors 3. Pro&ide !E as reser&e on discount on Creditors !. Pro&ide 10E depreciation on all depreciale assets #. Closing stoc/ is of %s. 3#=000 '. Insurance is paid as 01.10.1* for one year. (. "oods worth 2000 were lost y theft and insurance co)pany ad)itted clai) of %s. 1=#00  HHHHHHHHHHHHHHHHHHHH 

Financial Accounting – Induction

Final Accounts  #  A Following is the rial alance of r. 6wa)i for the year ended as on 31 st arch 2003. Prepare Final Accounts rial alance 9a)e of the Account $eit %s5 Credit %s5 Cash in Gand 1(0 Patents for # years 10=000 Patterns , Fi7tures 12=000 Inco)e a7  personal 3=*00 %ent , a7es 4ffice5 !=300 %ent , a7es Factory5 3=200 rade >7penses 2=000 4pening stoc/ #=000 4ffice >7penses 1=*00 ra&elling e7penses 1=00 $iscount %ecei&ed 1=!00 4utstanding e7penses !=300 Co))ission %ecei&ed 1=300 an/ 4&erdraft 1'=!00 6ales 1=(0=000 Capital 2=00=000 Creditors 10=200 elephone charges 2=200 "oodwill 1*=000 an/ Interest *30 Insurance 1=300 +ife insurance pre)iu) 2=!00 Bages , 6alaries 22=300 Purchases *0=300 Carriage Inward 2=100 Power Charges #=300 $etors 2!=(00 uilding *0=000 Plant , achinery 1=20=000  HHHHHHHHHHHHHHHHHHHHHHHHHHHHHH  !=03='00

!=03='00

Adust)ents: -

1. anager is to e gi&en #E co))ission on sales 2. ra&elling e7penses of %s.*00 are yet to e paid to a sales)an 3. Co))ission of %s.#00 has een recei&ed in ad&ance !. $etors include %s. #00 which are ad. #. Pro&ide #E %$$ on alance detors '. Closing 6toc/ if costing 1#=000 ut )ar/et &alue is %s. 12=!00

Financial Accounting – Induction

(.$epreciate Plant , ach. At 1#E and uilding at 10E.  HHHHHHHHHHHHHHHHHHHH  Final Accounts  '  A Following is the rial alance of r. 6ethi for the year ended as on 31 st arch 2002. Prepare Final Accounts rial alance 9a)e of the Account $eit %s5 Credit %s5 $etors 20=000 $uty , Clearing charges 3=100 "as , water 1=200 otor Car #=00 6alary for 11 )onths 22=000 Free hold land 2!=000 Creditors 10=000 %$$ (00 ills payale *=000 6ales 1=1*=000 4ther Inco)e '=200 Capital 1=20=000 ills %ecei&ale 1!=000 Printing charges 2=000 6undry >7penses *00 Audit fees 1=#00 Accountancy charges 2=100 "eneral e7penses 1=!00 Furniture 10=000 Ad&ertise)ent !=000 achinery !0=000 Cash in Gand 1=!00 Purchases #1=00 Bages 1*=300 4pening stoc/ 20=300 "oodwill 1=000  HHHHHHHHHHHHHHHHHHHHHHHHHHHHHH  2='2=00

2='2=00

Adust)ents: -

1. %ent due ut not paid %s. 3=000 2. "oods of %s. 1=*00 were distriuted as free sa)ples 3. anager is to e gi&en 10 E co))ission on sales !. Galf of the printing charges are for ne7t year #. aintain #E %$$ on detors , #E for discount on Creditors '. $epreciate all fi7ed assets at 10E on  @alue >7cept "oodwill5 (. Closing stoc/ was %s. 21=*00  HHHHHHHHHHHHHHHHHHHH 

Financial Accounting – Induction

%atio Analysis  1  A 6u))arised alance 6heet and Profit , +oss Accounts of s A +i)ited as on 31.03.2001 , 31.03.2000 are gi&en in %s. +acs. A+A9C> 6G>> Capital , +iailities 6hare Capital %eser&es , 6urplus $eentures +oans Current +iailities: Creditors ills Payale an/ 4&erdraft

31.03.2001 '! ( 300 2!0 1000 !00 #2(

12(

31.03.2000 '! !* 300 1'# 1#00 !#0 21#

32#* Assets Fi7ed Assets In&est)ents Current Assets: -In&entory Cash , an/ alance 6undry $etors

33(2

100# * (#0 3#0 11!#

22!#

32#*

21'#

10!! * *00 !#0 10(0

2320

33(2

P%4FI , +466 ACC4J9 For the ;ear >nded K5 6ales aterial 4ther >7penses otal >7penses

!(!0 220 1#!' !!''

#0#( 2((2 1*13 !#*#

4perating Profit efore Interest5

2(!

!(2

Interest

238

161

Profit After Interest

36

311

Other Income

15

13

#1

32!

Fro) the ao&e infor)ation calculate Current %atio= Acid test %atio= otal Asset urno&er ratio= CA turno&er ratio= Capital turno&er ratio= $et eDuity ratio= Proprietary ratio= 4perating Profit %atio= %eturn on

Financial Accounting – Induction

assets= %eturn on Capital e)ployed= return on share holders funds and aterial Consu)ption %atio

%atio Analysis  2  A 6u))arised Accounts of s 9 +i)ited and s PL +td as on 31.03.200! are gi&en in %s. +acs. A+A9C> 6G>> Capital , +iailities 6hare Capital %eser&es , 6urplus $eentures +oans Current +iailities: Creditors ills Payale an/ 4&erdraft

s. 9 +td 1*3 1! #0 122 !00 1## 12!

'(

s. PL +td 1*1 1!3 !# 1#3 32# 1'# 1*

11*3 Assets Fi7ed Assets In&est)ents Current Assets: -In&entory Cash , an/ alance 6undry $etors

1210

!2# 2 3(# 0 21

(#'

11*3

'**

!# 3# 31# (# 20

'*0

1210

P%4FI , +466 ACC4J9 For the ;ear >nded K5 6ales aterial 4ther >7penses otal >7penses

1*10 113 #0 1(02

1'# !3 #1 1!'2

10*

1(

Interest

92

97

Profit After Interest

16

100

Other Income

18

22

3!

122

4perating Profit efore Interest5

Fro) the ao&e infor)ation calculate Current %atio= Acid test %atio= otal Asset urno&er ratio= CA turno&er ratio= Capital turno&er ratio=

Financial Accounting – Induction

$et eDuity ratio= Proprietary ratio= 4perating Profit %atio= %eturn on assets= %eturn on Capital e)ployed= return on share holders funds and aterial Consu)ption %atio and any )aor oser&ations if )ade assu)ing oth the Co)panies fro) sa)e sector and acti&ity %atio Analysis  3  A Analyse the following four’s infor)ation of 6hree +td with help of reDuired , rele&ant ratios and discuss the perfor)ance of the Co)pany %s. +acs5 200!-0# 2=1#0

2003-0! 1=(#

2002-03 1=2#

2001-02 1=(#0

1=0#0 !2# 1=!(#

# 3'# 1=3'0

'# 3'0 1=32#

*# 33# 1=230

"ross Profit

'(#

'1#

'00

#20

Ad)inistrati&e >7p 6elling , $istriution Finance Costs $epreciation otal Indirect >7p

130 1*# !# '# !2#

110 1(* !2 #* 3**

10# 1#! 3* ## 3#2

11# 1!0 3# #( 3!(

9et Profit

2#0

22(

2!*

2(3

6ales aterial Consu)ed Factory >7p. , Bages otal $irect >7p

4ther I)portant infor)ation fro) alance 6heet is as Follows: 200!-0# 2003-0! 2002-03 2001-02 In&entory 3!# 330 31# 2(# Cash , an/ $etors

2# (0

!# 2#

30 *(#

2* (#0

Creditors ills Payale

30 1#

3(# !#

32# ##

3!3 20

Financial Accounting – Induction

 HHHHHHHHHHHH 

Fund Flow  6a)ple Prole)  A

Prepare fund flow fro) the alance 6heets of ?ee&an +i)ited

>Duity 6h Cap  E Pref 6h $eentures %eser&e %.$.$. Current +ia

1! 30=000 20=000 10=000 11=000 1=000 (=000 (=000

1# 3#=000 10=000 20=000 2(=000 1=#00 1!=#00 10*=000

Fi7ed Assets In&est)ents Current Assets Preli) >7ps

1! #1=000 3=000 2!=000 1=000

(=000

1# '2=000 *=000 3(=#00 #00

1=0*=000

he other infor)ation during the year is as under 1.

A )achine costing (=000 oo/ @alue of %s. !0005 was sold for %s.2=#00

2.

1# E $i&idend was paid to the eDuity capital on opening alance= howe&er the preference capital was not paid anything e7tra ut agreed rate.

3.

he rede)ption of preference was done at the year end at %s. #00 as pre)iu) on rede)ption.

!.

$epreciation on Fi7ed Assets was %s. (=000 at the end or the year.

Financial Accounting – Induction

A  Cost 6heet  1 Prepare Cost 6heet fro) details of a Che)ical Factory gi&en as under for 200!  0#= which is )anufacturing and selling che)ical )i7tures: 6toc/ as on 01.0!.200!  %aw aterial Bor/ in Progress Finished "oods Purchases Factory 6tores consu)ed Factory Bages Power , Fuel $epreciation on achinery Factory 6alaries 4ffice 6alaries 4ther Ad)inistration >7penses 6elling , $istriution >7penses Interest on +oan Co))ission on 6ales 6ales 6ale of 6crap Profit on 6ale of Assets 6toc/ as on 31.03.200#  %aw aterial Bor/ in Progress Finished "oods

2=00=000 *=00=000 !=#0=000 22=#0=000 (#=000 2=2#=000 1='#=000 1=2#=000 3=2#=000 !='#=000 *=(#=000 (=((=000 !=3#=000 1=10=000 (2=00=000 *#=000 3#=000 1=#=000 '=3#=000 2=3#=000

Financial Accounting – Induction

A  Cost 6heet  2 Prepare proected Cost 6heet fro) esti)ates of a "ar)ent Factory gi&en as under for 200#  0': -

>sti)ated 6ales would e %s. ##=00=000 he aterial Consu)ption would e he $irect +aour Cost would e $irect o&erheads would e Factory o&erheads would e Ad)in , 4ffice 4&erheads e 6elling , $istriution 4&erheads Co))ission on sales anagerial %e)uneration $epreciation on Production Assets $epreciation on 4ther Asset

!2.00 E '.'0 E !.2# E 0.'#E *.2# E 12.2# E #.00 E 2.00 E 1.#0 E 1.2# E

Also >sti)ate Per unit costs and profitaility if a&erage price of the product is %s. 1000-.

Financial Accounting – Induction

A  Cost 6heet  3 A anufacturing Co)pany sold 1=000 @s in the ;ear 200!. A su))ary of related Accounts is as follows rading , Profit , +oss Account for the year 200! o aterial Cost o $irect Bages o fg Costs o "ross Profit o 6taff 6alary o %ent , %ates o 6elling >7ps o "eneral >7ps o Inco)e a7 o 9et Profit

*0=000 1=20=000 #0=000 1=#0=000 !=00=000 '0=000 10=000 30=000 20=000 #=000 2#=000

y 6ales

!=00=000

y "ross Profit

!=00=000 1=#0=000

1=#0=000 1.

9e7t ;ear the 4utput would e 1=200 @6

2.

Price of aterial will rise y 20 E

3.

Bages will rise y # E.

!.

anufacturing cost will rise y 10 E

#.

6elling Cost per unit will re)ain sa)e.

'.

4ther e7penses will re)ain unaffected

1=#0=000

;ou are reDuested to prepare Cost 6heet and calculate selling price at which each @ should e )ar/eted to show profit of 10 E on the cost.