GET SOLVED ASSIGNMENTS
WHATSAPP NUMBER-
9967480770
Internal
Assignment Applicable for December 2017 Examination
Financial
Accounting
Q1. The following is the Trial Balance as
on 31st March 2017 prepared by GSA Ltd. (Rs. in crores)
Particulars Debit
( ) Credit ( )
Capital 6,000
Drawings 1,000
Cash on hand 50
Cash at bank 1,250
Sales 10,000
Purchases 4,000
Loan taken on mortgage 1,000
Patents 500
Land & building 3,000
Creditors 500
Advertisement 5,000
Debtors 1,800
Rates & taxes 40
Insurance 150
Carriage inwards 260
Carriage outwards 250
Legal expenses 200
Total 17,500
17,500
However the auditors of GSA Ltd. did not
approve of this trial balance. You are required to rectify and prepare the new
trial balance. Justify your answer as to which errors can be detected through
the trial balance.
Q2. Classify the following into revenue,
capital and deferred revenue expenditure and interpret your results: (10 Marks)
1. Amortisation of Patents
2. Goodwill of another business acquired
3. Underwriting commission paid in a
public issue of company’s shares
4. Loss on sale of Plant and Machinery
5. Cost of market research of a new
product
6. Purchase of second-hand laptops for
office use
Q3. Following are the balance sheets of
Suzuki Ltd. & Honda Ltd. as on 31st March 2017 together with the additional
information for the year ended on that date:
|
Liabilities
|
Suzuki Ltd.
|
Honda Ltd.
|
Assets
|
Suzuki Ltd.
|
Honda Ltd.
|
|
Equity Share
Capital
|
20,00,000
|
30,50,000
|
Goodwill
|
300,000
|
400,000
|
|
Reserves
|
50,500
|
60,000
|
Furniture
|
3,20,000
|
2,40,000
|
|
Profit & Loss
A/c
|
12,250
|
1,02,200
|
Plant &
Machinery
|
659,000
|
7,29,000
|
|
9% Debentures
|
3,50,000
|
2,50,000
|
Office premises
|
10,27,000
|
19,00,000
|
|
Bank overdraft
|
11,250
|
14,800
|
Stock
|
66,000
|
93,000
|
|
Sundry Creditors
|
36,000
|
58,000
|
Debtors
|
85,000
|
1,75,000
|
|
Provision for tax
|
20,000
|
15,000
|
Miscellaneous
expenses
|
23,000
|
13,000
|
|
|
24,80,000
|
35,50,000
|
|
24,80,000
|
35,50,000
|
Additional Information (Extract of Profit
& Loss A/c)
Particulars Suzuki Ltd. Honda Ltd.
Sales for the year 8,40,000 10,50,000
Stock on 31st March 2016 60,000 1,07,000
Gross Profit 2,10,000 2,50,000
Administrative expenses 55,000 65,000
Selling expenses 23,000 58,000
Net profit (after tax) 85,000 87,000
Market price of Suzuki Ltd. Rs. 23 per
share and Honda Rs. 28 per share. Dividend paid by Suzuki Ltd. 9.5% p.a. and
Honda is 9.8% p.a.
A) Compute any three relevant ratios and
comment upon the solvency and financial stability of the two companies. (5
Marks)
B) Which company would you recommend for
investment? (Support your answers with the computation of any three relevant
ratios). (5 Marks)
GET SOLVED ASSIGNMENTS
WHATSAPP NUMBER-
9967480770
No comments:
Post a Comment