3.00,000 3.00.00, | and Loss (Bal. fig.) 60.000 27. (c) Not Free from Bins Or (6) Loose Tools and Stores and Spares 28. (d)_ Issue of F ity Shares. 29. (c) Statement 1 is correct, and Statement TH is incorrect Or (a) No effect 30. (d) 1.80.00 Current Assets Inventor (i) | Lean repayable on demand Current Liat Short-Term Borrowings | (ii) | Provision for Retirement benefits | Non-Current Liahilties | Long-Term Provisions i (i) | Pre-paid Insurance Current Assets Other Current Assets | (°) | Capitat advances Non-Current Assets | Long Term Loans and Advances (vi) _|Sharesin Listed Companies | Non-Current Assets __| Non-Current Investments | 32, (a) Current Ratio = Current Assets / Current Liabilities 2 = €8.00,000 / Current Liabiliti So, Current Liabilities = & 4,00,000 Liguid Ratio = Liquid Assets / Current Liabilities 15 = Liquid Assets / & 4,00,000 So, Liquid Assets = % 6,00,000 Inventory = Current Assets ~ Liquid Assets Inventory = © 8,00,000 ~ % 6,00,000 = & 2,00,000 Inventory Tumover Ratio = Cost of Revenue From Operations / Average Inventory 6 = Cost of Revenue from Operations 2,00,000 Cost of Revenue from Operations = % 12,00,000 Gross Profit = 25% of Cost ie. % 3,00,000 Revenue From Operations = Cost of Revenue from Operations + Gross Profit = © 12,00,000 + & 3,00,000 Revenue From Operations = & 15,00,000 (uy Together with® EAD Accountancy—12 @ scanned with OKEN Scanner33. Debt to Capital employed ratio = W (6) Debt to Capital employed ratio = Debt / Capital Employed = © 750,000 / (& 7,50,000 + & 15,00,099) % 7,50,000 22,50,000 Debt to Capital employed ratio = 1/3 = 0,33 : 1 Common Size Statement of Profit & Loss Particulars 2022-238) | 2021-22 (@) ‘dee eta ines (2021-22) (2022.23) Revenue from operations 8,00,000 10,00,000 100 100 Less: Expenses | Cost of revenue from operations 3,20,000 3,00,000 40 oo | Other Expenses 2,20,000 260,000 205 6 ‘Total Expenses 5,40,000 5,60,000 67.5 56 Profit Before Tax 2,60,000 4,40,000 32.5 44 } Less: Tax 1,30,000 2,20,000 16.25 2 | Profits after Tax 1,30,000 2,20,000 16.25 D Working Note: Cost of Revenue from Operations (2021-22) = % 10,00,000 (Revenue from operations) ~ % 7,00,000 (Gross Profit) = % 3,00,000 Cost of Revenue from operations (2022- 23) = % 8,00,000 ~ % 4,80,000 = = 3,20,000 Comparative Statement of Profit & Loss Bee eer Absolute | Proportionate Particulars 202122 @) | 202223 | yarn, et ‘A. Revenue from operations 8,00,000 | 10,00,000 2,00,000 25 B. Add: Other Income 150,000 | 2,20,000 70,000 46.67 C. Total Revenue (A+B) 9,50,000 | 12,20,000 2,70,000 28.2 D. Less: Cost of materials consumed | 3,00,000 | 4,00,000 1,00,000 Change in inventories of finished goods and work in progress 1,00,000 | 200,000 1,00,000 100 Other Expenses 80,000. 1,50,000 70,000 Sis Total Expenses 4,80,000 7,50,000 2,70,000 36.25 |B. Profits befor Tax (C-D) 4,70,000 | —4,70,000 - a E Tx @30% 1,41,000 | 1,41,000 7 : Profits after Tax (EF) 3,29,000 } _3,29,000 = E Cash Flow Statement for the year ended March 31, 2023 @ scanned with OKEN ScannerTo Premium Redemption of Debentures A/¢ : (Being debentures issued at par redeemable @ 10% premium) 27. (B) % 3,00,000 ; ' Revenue from Operations Working Capital Turnover Ratio = - ital Working Capita Revenue from Operations : % 50,000 Revenue from Operations = = 3,00,000 Working Note: Working Capital = Current Assets — Current Liabilities = % 2,00,000 — = 1,50,000 = % 50,000 Latest Exai @ scanned with OKEN Scanner28 (a) (C) (ii) and (ii) Or (6) (B) Current ratio is also known as Acid ‘Test Ratio, 29. (D) (ii) and (ii) 30. (a) (C) Acquis ion of machinery by issue of equity shares uM Or () (B) Gi) @ (ii) ug tems Main Head Sub-Heading Loose Tools Current Assets Inventory Advance Current Liabilities Other Current Liabilities Capital Reserve Sharcholders’ Fund Reserves and Surplus 32, Process Highlighted: Ratio Analysis ‘Two objectives: (®) To assess the operating efficiency of the business. (ii) To analysis the profita (iit) To help in comparative anatysi y of business, 33. (a) Inventory Turnover Ratio = ‘Average Inventory Closing Inventory = Opening Inventory = Average Inventory © Revenue from Opetation = t 10a, 0 Bross Profit = HOM x ey Gross Profit = TMM «T= t 20 (any wo) Cost of Revenue from Operation Cost of Revenue from Operations = © 10,00,000 ~ € 2,00,000 = 4,00,000 te [80000 Ss 4 = £.6400,000 20x = toxon000 Closing Inventory = x = & 3,20,000 Opening Inventory = % 80,000 Or (6) (Decline as deb decreases and equity increases, (i) No change as no change in debt or equity, (ii) Decline as debt decreases but no chan, () No change as no change in debtor equity 8} Tapether with® EAD Accountancy —12 Be in equity. @ scanned with OKEN Scanner27. (d) Balance Sheet and Statement of Profit and Loss (c) Only (i) and (i?) are correct. 28, (c) 3:1 29. (a) Both Statements are correct. (©) © 1,05,000 30. (c) Inflow & 7,40,000 Or Or 31. (i) Current assets, Cash and cash equivalents (i) Current assets, Trade receivables (iii) Shareholders’ funds, Reserves and surplus jv) Non-current liabilities, Long-term borrowings (x) Current assets, Current Investments (vi) Non-current assets, Property, plant and equipments and intangible assets (Intangible assets) 32. (@) Operating Profit = Profit after Tax + Loss on sale of Machinery — Dividend received % 53,200 + & 1,600 - ¢ 800 Operating Profit Ratio = Revenue from Operations 54,000 Operating Profit 199 54,000 ~ %2,00,000 X 100 = 27% (©) (@_ The ratio will decrease as increase in closing inventory means decrease in revenue from operations and increase in average inventory. (i) The ratio will not change as there is no change in revenue from operations and average inventory. Common-size Statement of Profit and Loss for the year ended 31st March, 2023 33. ‘Total Revenue IL. Expenses: (@) Cost of Materials Consumed (©) Other Expenses ‘Total Expenses IIL Profit before Tax (I-11) IV. Less: Tax Paid V._Profit after Tax (I-IV) Absolute | % fRevenne Particulars "| Note No. ae © from 5 ale Amonnt Operations I. Revenue from Operations 25,38,000] 100.00 Other Income 38,000 1.50 25,76,000} 101.50 14,00,000 55.16 5,00,000 19,70 19,00,000 74.86 6,76,000 26.64 3,38,000 13,32 3,38,000 13,32 Sample Papers is _. rm, @ scanned with OKEN ScannerOr nee Sheet of Depth Ltd. as at 31st March, 2022 and 2023 Comparative Bala 31st M cape Percentage st March, 31st March, ange Cha Particulars 2022 (2) 2023 @) (Inerease/ nen Decrease) (2) Decrease EQUITY AND LIABILITIES | ) 1. Shareholders’ Funds (a) Equity Share Capital 25,00,000 25,00,000 _ _ (b) Reserves and Surplus 5,00,000 6,00,000 10,00,008 20 2. Non-current Liabilities Long-term Borrowings: Loan 15,00,000 15,00,000 _- - 3. Current Liabilities 5,00,000 5,50,000. 50,000 10 Total 50,00,000 51,50,000 1,50,000 Il. ASSETS >> 1. Non-current Assets (a) Fixed Assets (Tangible) 30,00,000 36,00,000 6,00,000 20 (b) Non-current Investments 5,00,000 5,00,000 a _ 2. Current Assets 15,00,000 10,50,000 (4,50,000)__| (30) Total 50,00,000 L 51,50,000_ | 1,50,000 [3 | @ scanned with OKEN Scanner30. (b) Financing act a (ay 6 2000 iy Trem) Major Heads ‘Sub-heads Non-current Li Long-term Borrowings (i) Debentures: cil from a customer Current Liabi ‘Other Current Liabilities (i) Advance re (iii) Motor ear Non-current Assets Properly, Plant and Equipment and Imangible Assets: Property, Plant and Equipment (iv) Leas jold property Non-current Assets Property, Plant and Equipment and Intangible Assets: Property, Plant and Equipment Short-term Borrowings Long-term Provisions, Current Liabi () Public deposit for 12 months (vi) Eneashn Non-current Liabilities entof leave payable on retirement BAD Accountancy —12 ——____— “ Profit before Interest Tax and Dividend Capital Employed Return on Investment = x 100 32. (a) _ _31,11,000 * TSS = Shareholders’ Funds + Long-term Debts % 10,00,000 + 5,30,000 = @ 15,30,000 x10 = 7.25% = Total Assets - Shareholders’ Funds - Current Liabilities Long-term Debts = © 18,00,000 - & 10,00,000 ~ 2,70,000 = & 5,30,000 Net Profit before Interest and Tax = & 75,000 + % 36,000 ( 3,00,000 x 12%) = @ 1,11,000 nue from Operations Capital Employed _ 226,66,667 _ = qssecano™ 174 Times _ Rev (6) Net Assets Turnover ratio 100 00, eu 6, 66,66 © 20,00,000 x EO = % 26,66,667 Revenue from Operations Capital Employed = € 15,30,000 fas calculated in (a)] @ scanned with OKEN Scanner