FINAL

RIVINFR AND FSA

14-07-24|| 10A MOONWARDS

GOBIND KUMAR JHA 9874411552
B. Com. (Semester – VI)
Exam Practice Series, 2024

Fund Flow Statement

1. The Balance Sheet of Boom Ltd. as on 31st March, 2022 and 2023 are given below:-
31.03.2022 (₹) 31.03.2023 (₹)
I. Equity and Liabilities:-
1. Shareholder’s Funds:-
(a) Share Capital 4,00,000 5,00,000
(b) Surplus
(i) Capital Reserve - 20,000
(ii) General Reserve 1,80,000 2,10,000
(iii) Statement of Profit & Loss 70,000 90,000
(iv) Preliminary Expenses (30,000) (20,000)
2. Non-current Liabilities:-
(a) Long-term Borrowings
Debentures 3,00,000 2,00,000
3. Current Liabilities:-
(a) Trade Payables (Creditors) 1,30,000 1,20,000
(b) Short-term Provisions:-
(i) Provision for Income Tax 80,000 60,000
(ii) Proposed Dividend 40,000 50,000
Total 11,70,000 12,30,000
II. Assets:-
1. Non-current Assets:-
(a) Property, Plant and Equipment at Cost 10,00,000 10,00,000
Less:- Depreciation (2,60,000) (3,10,000)
(b) Investments 1,10,000 90,000
2. Current Assets:-
Current Assets (All) 3,20,000 4,50,000
Total 11,70,000 12,30,000
st
During the year ended 31 March, 2023, the company:-
(a) Sold one machine for ₹ 40,000, the cost of which was ₹ 80,000 and the depreciation provided on it
was ₹ 30,000.
(b) Provide ₹ 1,00,000 as depreciation.
(c) Redeem the debentures at ₹ 105.
(d) Sold some investments at a profit which was credited to Capital Reserve.
(e) Decided to write-off the Property, Plant & Equipment (fully depreciated) costing ₹ 20,000.
(f) Decided to value opening stock at cost which was valued previously at cost less 10%. The opening
stock according to books was ₹ 63,000. The closing stock was correctly valued at cost.

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Prepare statement of sources and applications of funds for the year ended 31.03.2023 showing changes in
Working Capital.

2. Following are the Balance Sheets of Popular Ltd. as on 31st March, 2022 and 2023.
Particulars Note No. 2022 2023
I. Equity and Liabilities:-
1. Shareholder’s Funds:-
(a) Share Capital 2,00,000 2,50,000
(b) Surplus 1 80,500 90,600
2. Non-current Liabilities:-
(a) Long-term Borrowings (Bank Loan) 70,000 -
3. Current Liabilities:-
(a) Trade Payables (Sundry Creditors) 1,50,000 1,35,200
(b) Short-term Provisions
Provision for Taxation 30,000 35,000
Total 5,30,500 5,10,800
II. Assets:-
1. Non-current Assets:-
(a) Property, Plant and Equipment
(i) Tangible Assets 2 3,50,000 3,59,000
(ii) Intangible Assets (Goodwill) 5,000 5,000
2. Current Assets:-
(a) Inventories (Stock) 1,00,000 74,000
(b) Trade Receivables (Sundry Debtors) 80,000 64,200
(c) Cash and Cash Equivalents 3 500 8,600
Total 5,30,500 5,10,800
Notes to Accounts:-
Particulars 2022 (₹) 2023 (₹)
1. Surplus:-
(a) General Reserve 50,000 60,000
(b) Balance in Statement of Profit and Loss 30,500 30,600
80,500 90,600
2. Property, Plant and Equipment – Tangible Assets:-
(a) Land and Building 2,00,000 1,90,000
(b) Machinery 1,50,000 1,69,000
3,50,000 3,59,000
3. Cash and Cash Equivalents:-
(a) Cash 500 600
(b) Bank - 8,000
500 8,600
Additional Information:-
a) Dividend of ₹ 23,000 was paid.

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b) Assets of another company were purchased for a consideration of ₹ 50,000 payable in shares. The
following assets were purchased for:- Stock ₹ 20,000; Machinery ₹ 25,000 and Goodwill ₹ 5,000.
c) Machinery was further purchased for ₹ 8,000.
d) Depreciation written off on machinery ₹ 12,000.
e) Income Tax provided during the year ₹ 33,000.
f) Loss on sale of machinery of ₹ 200 was written off to general reserve.
You are required to prepare:-
i) Statement of Changes in Working Capital.
ii) Statement of Fund Flow.

Accounting Ratios for FSA

3. From the following particulars, prepare a Summarized Balance Sheet in detail as on 31 st March, 2021:-
Fixed Assets to Net Worth = 0.8 : 1
Current Ratio = 3 : 1
Fixed Assets = ₹ 8,00,000
Reserve included in Proprietor’s Fund = 25%
Acid Test Ratio = 3 : 2
Cash and Bank = ₹ 15,000
Long-term Loans = ₹ 2,00,000
Bank Overdraft = Nil

4. From the following information, prepare the Balance Sheet of X Ltd. as on 31.12.2020:-
Current Ratio 2:1
Liquid Ratio 1.25 : 1
Fixed Assets to Proprietorship Ratio 0.75 : 1
Gearing Ratio 1:1
Working Capital (Net) ₹ 8,000
Reserve and Surplus ₹ 2,000
Bank Overdraft ₹ 2,000
Long-term Loan Nil

5. From the following information, prepare a Statement of Proprietor’s Fund showing as many details as
possible:-
➢ G.P. ratio = 25%;
➢ Current ratio=1.6;
➢ Liquid ratio=1.35;
➢ Stock turnover ratio (based on Cost of goods sold) = 9 times;
➢ Debtors' turnover = 146 days;
➢ Bank Overdraft = Nil;
➢ Property, Plant and Equipment to Net Worth = 0.90;
➢ G.P. = ₹3,75,000
➢ Long term Loan to Current Liability = 0.40;
➢ Reserve to Share Capital = 0.25.
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6. With the following ratios and future information given below, prepare a Trading Account and Profit &
Loss Account for the year ended on 31.12.2022 and a Balance Sheet of Mr. Gopal as on that date.
1
a) Gross Profit Ratio = 33 3 %
b) Net Profit = 25% of Turnover
c) Stock Turnover Ratio = 10 times
1
d) Current Liabilities/External Liabilities = 4
5
e) Fixed Assets/Closing Capital = 4
1
f) Closing Capital/External Liabilities = 2
5
g) Fixed Assets/Current Assets = 7
h) Fixed Assets = ₹ 20,00,000
i) Closing Stock = ₹ 2,20,000 which is 10% more than the opening stock.

7. Assuming 360 days in a year, calculate the Average Collection Period from the following information:-
Average Inventory ₹ 1,80,000
Debtors ₹ 1,20,000
Inventory Turnover 6 times
G. P. Ratio 10%
Credit Sales to Total Sales 20%

Introduction to FSA

8. With the help of following information of Gopal Bros. for the year ended 31.03.2022, prepare a Common
Size Income Statement.
Particulars ₹
Office and Selling & Distribution Expenses 60,000
Other Income 20,000
Total Cost of Sales: 75% of Net Sales -
Net Profit before Tax 1,20,000

9. From the trend % supplied below, prepare a comparative statement of current assets in absolute value
taking 2018 as the base year:-
Trend Percentage Corresponding value of Current Assets
2017 2018 2019 2019 (₹)
120 130 150 7200 – Debtors
130 140 200 13600 – Raw Materials
160 220 250 8000 – WIP
175 250 300 9000 – Cash at Bank
110 150 175 3500 – Finished Goods

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10. Find the sales of the base period and other missing data from the following figures of X Ltd.
Year 2018 2019 2020 2021 2022
Sales (₹ ‘000) 1980 ? 2805 3140 3798
Trend (%) 110 130 ? ? ?

11. From the following information, interpret the results of operation of a manufacturing concern using Trend
Ratio.
Particulars 2019 2020 2021 2022
Sales (Net) 13,000 12,000 9,500 10,000
Cost of Goods Sold 7,280 6,960 5,890 6,000
Gross Profit 5,720 5,020 3,610 4,000
Selling Expenses 1,200 1,100 970 1,000
Net Operating Profit 4,520 3,940 2,640 3,000

12. From the following information, prepare a comparative income statement:-

Particulars 31.12.2022 (₹) 31.12.2023 (₹)
Sales 3,00,000 4,00,000
Purchase 2,00,000 2,50,000
Cost of Goods Sold 40% of Sales 60% of Sales
Administrative Expenses 10% of Gross Profit 5% of Gross Profit
Income Tax 40% 40%
Comment on the performance of the unit.

Holding Company
13. The Balance Sheet of H Ltd. and S Ltd. as on 31.03.2024 are as follows:-
Particulars H Ltd. (₹) S Ltd. (₹)
Equity and Liabilities:-
Shareholder’s Funds:-
Equity Share Capital (₹ 10 each) 3,00,000 2,00,000
12% Preference Share Capital (₹ 100 each) 1,00,000 -
Reserve and Surplus:-
General Reserve 1,20,000 40,000
Balance of Profit & Loss (Cr.) 2,00,000 1,80,000
Current Liabilities:-
Creditors 20,000 70,000
Provision for Tax 15,000 16,000
Total 7,55,000 5,06,000
Assets:-
Non-current Assets:-
Property, Plant and Equipment:-
Land & Building 2,05,000 2,76,000
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GOBIND KUMAR JHA 9874411552
Non-current Investments:-
Investments in shares of S Ltd. 2,80,000 -
Current Assets:-
Inventories 1,40,000 1,40,000
Debtors 80,000 60,000
Cash at Bank 50,000 30,000
Total 7,55,000 5,06,000

Further Information:-
a) H Ltd. acquired 10,000 shares in S Ltd. on 01.01.2024. The balance of reserve and surplus of S Ltd.
on 01.04.2023 was as under:-
i. General Reserve - ₹ 1,60,000
ii. Profit & Loss Balance (Cr.) - ₹ 70,000
b) On 01.03.2024, S Ltd. issued three fully paid bonus shares for every five shares held out of
accumulated general reserve balance on 01.04.2023 and recorded the same.
c) S Ltd. paid dividend on 01.02.2024 for the year 2022-23 @ 8% and H Ltd. credited its share in the
Profit & Loss A/c.
d) Debtors of H Ltd. include ₹ 40,000 for goods supplied by H Ltd. at a profit of 20% on sales and stock
of S Ltd. includes unsold transferred goods supplied by H Ltd. ₹ 30,000.
Prepare a Consolidated Balance Sheet of H Ltd. and its subsidiary S Ltd. as on 31.03.2024.

14. H Ltd. acquired 1,200 equity shares in S Ltd. on 01.04.2019. The Statement of Assets and Liabilities of
H Ltd. and its subsidiary S. Ltd. as on 31.03.2020 stood as follows:-
Particulars H Ltd. (₹) S Ltd. (₹)
I. Equity and Liabilities:-
1. Shareholder’s Funds:-
(a) Share Capital:-
Equity Share Capital (₹ 100 fully paid) 5,00,000 1,50,000
Preference Share Capital (₹ 10 fully paid) 1,00,000 -
(b) Surplus:-
General Reserve 3,40,000 5,000
Profit & Loss Balance 3,60,000 1,08,000
2. Non-current Liabilities:-
Long-term Borrowings (6% Debentures – Secured) - 25,000
3. Current Liabilities:-
Trade Payables 1,00,000 44,300
Total 14,00,000 3,32,300
II. Assets:-
1. Non-current Assets:-
(a) Property, Plant and Equipment – Tangible
Land and Building 3,56,000 70,000
Plant and Machinery 1,40,000 91,300
Furniture and Fixtures 3,76,000 40,000

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(b) Non-current Investment:-
Investment in S Ltd. (Share of S Ltd.) 1,80,000 -
2. Current Assets:-
(a) Inventories 1,36,000 50,600
(b) Trade Receivables 2,00,000 70,000
(c) Cash and Cash Equivalents 12,000 10,400
Total 14,00,000 3,32,300
The other information given ate:-
a) On 01.04.2019, P&L of S Ltd. stood at ₹ 77,500 and General Reserve at ₹ 3,000.
b) H Ltd. revalued Plant and Machinery of S Ltd. at the time of purchase of shares by ₹ 20,000 more
than its book value (ignore depreciation).
c) Trade Receivables of S Ltd. include ₹ 24,000 for sales to H Ltd. on which S Ltd. made a profit of ₹
6,000.
d) Inventories of H Ltd. includes ₹ 8,000 of stock purchased from S Ltd.
e) S Ltd. made a Bonus Issue during the year out of pre-acquisition profits for ₹ 60,000 not recorded in
the books.
You are required to prepare the Consolidated Balance Sheet of H Ltd. with its subsidiary S Ltd. as at
31.03.2020.

15. The Balance Sheet of Gopal Ltd. and its subsidiary Sanjana Ltd. as on 31.03.2020 are given below:-
[Figures are in Lakhs]
Particulars Gopal Ltd. (₹) Sanjana Ltd. (₹)
I. Equity & Liabilities:-
1. Shareholder’s Funds:-
(a) Share Capital:-
Equity Shares of ₹ 10 fully paid 12,000 4,800
(b) Surplus:-
(i) General Reserve 2,784 1,380
(ii) Statement of Profit & Loss 2,715 1,620
2. Current Liabilities:-
(a) Trade Payables:-
(i) Sundry Creditors 1,461 854
(ii) Bills Payable 372 160
(b) Short-term Provisions:-
(i) Provision for Taxation 855 394
(ii) Proposed Dividend 1,200 -
Total 21,387 9,208
II. Assets:-
1. Non-current Assets:-
(a) Property, Plant and Equipment – Tangible
(i) Land & Buildings 2,718 -
(ii) Plant and Machinery 4,905 4,900
(iii) Furniture and Fixtures 1,845 586

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(b) Non-current Investments:-
Shares in Sanjana Ltd. 3,000 -
2. Current Assets:-
(a) Inventories (Stock) 3,949 1,956
(b) Trade Receivables:-
(i) Debtors 2,600 1,363
(ii) Bills Receivables 360 199
(c) Cash and Cash Equivalents 1,490 204
(d) Other Current Assets (Sundry Advance) 520 -
Total 21,387 9,208
The following information are also provided:-
a) Gopal Ltd. purchased 180 lakhs shares in Sour Ltd. on 1st April, 2019, when the balances to General
Reserve and Statement of Profit and Loss (Credit) of Sanjana Ltd. stood at ₹ 3,000 lakhs and ₹ 1,200
lakhs respectively.
b) On 4th July, 2019 Sanjana Ltd. declared a dividend @ 20% for the year ended 31.03.2019. Gopal Ltd.
credited dividend received by it to its Statement of Profit and Loss.
c) On 1st January, 2020 Sanjana Ltd. issued 3 fully paid up shares for every 5 shares held as bonus out
of balances to its General Reserve as on 31.03.2019.
d) On 31.03.2020 all Bills Payable in Sanjana Ltd's Balance Sheet were acceptances in favour of Gopal
Ltd. But on that date, Gopal Ltd. held only ₹ 45 lakhs of these acceptances in hand, the rest having
been endorsed in favour of its Creditors.
e) On 31.03.2020 Sanjana Ltd's, stock included goods which it had purchased for ₹ 100 lakhs from Gopal
Ltd. which made a profit @ 25% on Cost.
Prepare a Consolidated Balance Sheet of Gopal Ltd. and its subsidiary Sanjana Ltd. as on 21 st March,
2020.

Cash Flow Statement

16. Classify the following transactions according to ‘Operating’, ‘Investing’ and ‘Financing’ activity:-
a) Profit on sale of fixed assets ₹ 25,000.
b) 5,000 Preference Shares of ₹ 10 each were redeemed.
c) Payment of income tax ₹ 60,000.
d) Dividend paid ₹ 1,00,000 on equity shares.
e) Dividend received on shares ₹ 12,000.

17. Following are the information of X Ltd. as on 31.03.2019 and 31.03.2020:-

Particulars 31.03.2019 31.03.2020
I. Equity & Liabilities:-
1. Shareholder’s Funds:-
(a) Equity Shares of ₹ 10 each fully paid 4,00,000 5,00,000
(b) Surplus:-
(i) Securities Premium 50,000 60,000
(ii) General Reserve 1,80,000 2,20,000

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(iii) Statement of Profit & Loss 1,10,000 1,48,000
2. Non-current Liabilities:-
Bank Loan 2,10,000 2,40,000
3. Current Liabilities:-
(a) Trade Payables 83,000 1,08,000
(b) Provision for Tax 1,00,000 1,05,000
Total 11,33,000 13,81,000
II. Assets:-
1. Non-current Assets:-
(a) Property, Plant and Equipment – Tangible 8,98,000 10,92,000
2. Current Assets:-
(a) Inventories (Stock) 1,20,000 1,40,000
(b) Trade Receivables 80,000 95,000
(c) Cash and Cash Equivalents 35,000 54,000
Total 11,33,000 13,81,000
Following further particulars for the year 2019-20 are also given:-
a) Dividend paid during the year ₹ 40,000.
b) The company sold part of the fixed assets for ₹ 32,000 (W. D. V. ₹ 20,000). Depreciation charged on
fixed assets during the year ₹ 76,000.
c) Interest accrued and paid during the year on Bank Loan ₹ 24,000.
d) Income tax paid during the year ₹ 16,000.
You are required to prepare the Cash Flow Statement of X Ltd. for the year ended 31.03.2020.

18. From the following Summary Cash A/c of Ranjan Ltd. prepare Cash Flow Statement for the year ended
31.03.2020 in accordance with Ind AS 7 using the direct method. The company does not have any cash
equivalents.
Summary Cash A/c for the year ended 31.03.2020
₹ ‘000 ₹ ‘000
Balance (1.4.2019) 50 Payment to Suppliers 2,000
Issue of Equity Shares 200 Purchase of Computers 200
Issue of Preference Shares 100 Overhead Expense 200
Receipts from Customers 2,800 Wages and Salaries 100
Sale of Furniture 100 Taxation 250
Dividend 50
Repayment of Bank Loan 300
Balance (31.03.2020) 150
3,250 3,250

19. Calculate Fund from Operation before tax from the information given below:-
Cash from operation before tax ₹ 92,000
Depreciation charged ₹ 17,000
Interest paid ₹ 10,000
Balances relating to current assets and liabilities are:-

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Opening Closing
Debtors ₹ 15,000 ₹ 13,000
Inventory ₹ 11,000 ₹ 14,000
Accrued Expense ₹ 4,000 ₹ 3,000
Creditors ₹ 3,000 ₹ 7,000
Cash and Bank ₹ 12,000 ₹ 9,000

Introduction Theory (AS – 1/16/33) (Please Read)

20. Following particulars are made available to you:-
• EBIT for the year 2020-21 ₹ 92,000 and Rate of Income Tax 25%;
• 12% Debentures ₹ 1,00,000
• Share Capital on 31.03.2021:-
10% Cumulative Preference Shares of ₹ 80,000; and
10,000 Equity Shares of ₹ 10 each fully paid
Calculate EPS when:-
a) No equity shares were issued during the year.
b) 2,400 equity shares were issued on 30.11.2020.

21. From the following information relating to A Ltd. calculate Basic EPS and Diluted EPS as per Ind AS
33:-
Net Profit (after tax) for the current year ₹ 3,00,00,000
No. of outstanding equity shares 50,00,000 shares of ₹ 10 each
No. of 10% Fully Convertible Debentures 50,000 debentures of ₹ 100 each
12% Cumulative Preference Shares 50,000 shares of ₹ 100 each
Corporate Tax Rate 30%
Each fully Convertible Debenture will be converted into 8 equity shares ₹ 10 each.

22. Zebra Ltd. is in the process of negotiating the acquisition of specialized machinery for the perfumery
process. The following activities are accordingly carried out:-
a) Cost of construction of the special site is ₹ 60,000.
b) New specialized machinery valued at ₹ 2,00,000 was purchased.
c) It spent ₹ 4,000 on freight and ₹ 3,000 on installation.
d) It spent materials worth ₹ 3,000 and wages of ₹ 1,200 on the trail run.
e) Machinery was finally installed but owing to low capacity utilization, it incurred loss of ₹ 10,000.
f) Hibiscus incurred costs of ₹ 5,000 for launching the product.
Calculate cost to be capitalized of new specialized machinery in accordance with Ind AS 16.

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