GR 12 ACCOUNTANCY WORK SHEET 2
1) Calculate Inventory Turnover Ratio from the following information:
Cost of Revenue from Operations ₹2,40,000; Purchases ₹2,42,000; Opening
Inventory ₹ 29,000.
2) The First Quarter report of Basan Ltd. Gives the following information about segment
performance
SEGMENT SALES (Rs) GROSS PROFIT (Rs)
FOOD AND 20,00,000 80,000
BEVERAGES
CLOTHING 20,00,000 50,000
STATIONARY 40,00,000 60,000
COSMETICS 30,00,000 90,000
Which segment has the maximum gross profit margin?
3. Following are the Balance Sheets of Kaveri Ltd. for the years ended 31st March 2012 and
2011:
31st 31st
Note March, March,
Particulars
No. 2012 2011
(₹) (₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 12,00,000 8,00,000
(b) Reserves and Surplus (Surplus, i.e., Balance in Statement of 3,50,000 4,00,000
Profit and Loss)
2. Non-Current Liabilities
Long-term Borrowings 4,40,000 3,50,000
3. Current Liabilities
(a) Trade Payables 60,000 50,000
Total 20,50,000 16,00,000
II. ASSETS
1, Non-Current Assets
Fixed Assets:
Tangible Assets 12,00,000 9,00,000
2. Current Assets
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(a) Inventories 2,00,000 1,00,000
(b) Trade Receivables 3,10,000 2,30,000
(c) Cash and Cash Equivalents 3,40,000 3,70,000
Total 20,50,000 16,00,000
Prepare a Cash Flow Statement after taking into account the following adjustments:
(a) The company paid Interest ₹36,000 on its long-term borrowings.
(b) Depreciation charged on tangible fixed assets was ₹1,20,000
ANSWERS
1. Cost of Goods Sold = Opening Inventory + Purchases − Closing Inventory
Closing Inventory = 29,000 + 2,42,000 – 2,40,000
Closing Inventory = 31,000
Average Inventory = Opening Inventory + Closing Inventory
2
= 29,000 + 31,000 = 30,000
2
Inventory Turn Over Ratio = Cost of Goods Sold = 2,40,000 = 8 Times
Average Inventory 30,000
2. Gross Profit Ratio= Gross Profit/ Revenue from operation*100
FOOD & BEVERAGES = 80,000/20,00,000*100
=4%
CLOTHING = 50,000/20,00,000*100
= 2.5 %
STATIONARY = 60,000/40,00,000*100
= 1.5 %
COSMETICS = 90,000/30,00,000*100
=3%
FOOD & BEVERAGES has the maximum Gross Profit margin
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3.
Cash Flow Statement
for the year ended March 31, 2012
Amount Amount
Particulars
(₹) (₹)
A Cash Flow from Operating Activities
Surplus; Profit as per Statement of Profit and Loss (50,000)
Non Cash & Non Operating Items to be Added:
Depreciation 1,20,000
Interest Paid 36,000 1,56,000
Operating Profit before Working Capital Adjustments 1,06,000
Less: Increase in Current Assets
Inventories (1,00,000)
Trade Receivables (80,000)
Add:Increase in CurrentLiabilities
Trade Payables 10,000 (1,70,000)
Cash Generated from Operations (64,000)
Less: Tax Paid NIL
Net Cash used in Operating Activities (64,000)
B Cash Flow from Investing Activities
Purchase of Tangible Fixed Assets (4,20,000)
Net Cash Used in Investing Activities (4,20,000)
C Cash Flow from Financing Activities
Interest Paid (36,000)
Proceeds from Issue of Share Capital 4,00,000
Proceeds from Long Term Borrowings 90,000
Net Cash Flow from Financing Activities 4,54,000
D Net Decrease in Cash and Cash Equivalents (30,000)
Add: Cash and Cash Equivalent in the beginning of the period 3,70,000
Cash and Cash Equivalents at the end of the period 3,40,000
Tangible Fixed Assets Account
Dr. Cr.
Amount Amount
Particulars Particulars
(₹) (₹)
Balance b/d 9,00,000 Depreciation A/c 1,20,000
Bank A/c (Bal. Fig.) 4,20,000 Balance c/d 12,00,000
13,20,000 13,20,000
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