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    Q1 From The Following Particulars of XYZ Ltd. Prepare The Cash Flow Statement

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    Suvam Patel
    From the information provided about XYZ Ltd: - The cash flow statement can be prepared from the balance sheets for March 31, 2016 and March 31, 2017 and additional information about transactions during the year. - Transactions include the sale of a machine, depreciation charged, redemption of preference shares including premium, interim dividend paid on equity shares, preference dividend paid, and new shares/debentures issued.

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    Q1 From The Following Particulars of XYZ Ltd. Prepare The Cash Flow Statement

    Uploaded by

    Suvam Patel
    518 views2 pages
    From the information provided about XYZ Ltd: - The cash flow statement can be prepared from the balance sheets for March 31, 2016 and March 31, 2017 and additional information about transactions during the year. - Transactions include the sale of a machine, depreciation charged, redemption of preference shares including premium, interim dividend paid on equity shares, preference dividend paid, and new shares/debentures issued.

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    From the information provided about XYZ Ltd: - The cash flow statement can be prepared from the balance sheets for March 31, 2016 and March 31, 2017 and additional information about transactions during the year. - Transactions include the sale of a machine, depreciation charged, redemption of preference shares including premium, interim dividend paid on equity shares, preference dividend paid, and new shares/debentures issued.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    518 views2 pages

    Q1 From The Following Particulars of XYZ Ltd. Prepare The Cash Flow Statement

    Uploaded by

    Suvam Patel
    From the information provided about XYZ Ltd: - The cash flow statement can be prepared from the balance sheets for March 31, 2016 and March 31, 2017 and additional information about transactions during the year. - Transactions include the sale of a machine, depreciation charged, redemption of preference shares including premium, interim dividend paid on equity shares, preference dividend paid, and new shares/debentures issued.

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    © All Rights Reserved
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    Q1 From the following particulars of XYZ Ltd. prepare the Cash Flow Statement.

    Dr. Cr.

    Liabilities March 31 March 31, Assets March 31, March 31


    2016 2017 2016 2017
    Rs. Rs. Rs. Rs.
    Equity Share Capital 3,00,000 3,50,000
    Fixed Assets (Net) 5,10,000 6,20,000
    12% Pref. Share Capital 2,00,000 1,00,000
    10% Investment 30,000 80,000
    10% Debentures 1,00,000 2,00,000
    Cash in Hand 20,000 35,000
    Profit and Loss A/c 1,10,000 2,70,000
    Cash at Bank 20,000 40,000
    Creditors 70,000 1,45,000
    Debtors (Good) 1,00,000 2,00,000
    Provision for Doubtful Debts 10,000 15,000
    Stock 1,00,000 90,000
    Discount on Deb. 10,000 15,000
    7,90,000 10,80,000 7,90,000 10,80,000

    You are informed that during the year :


    (i) A machine with a book value of Rs. 40,000 was sold for 25,000.
    (ii) Depreciation charged during the year was Rs.70,000.
    (iii) Preference shares were redeemed on 31st March, 2007 at a premium of 5%.
    (iv) An Interim Dividend @ 15 per cent was paid on equity shares on 31st March, 2017.
    Preference Dividend was also paid on 31st march, 2017.
    (v) New shares and debentures were issued on 31st March, 2017.

    Q2. With the help of the following information prepare a Trading Account, Profit and Loss Account and
    Balance Sheet of ABC Ltd.:

    (i) Gross Profit Ratio 25%

    (ii) Net Profit Ratio 20%

    (iii) Inventory Turnover Ratio 10 Times

    (iv) Net Profit / Capital 1/5

    (v) Capital / External Liabilities 1/2

    (vi) Fixed assets to Capital 5/4

    (vii) Fixed Assets / Total Current Assets 5/7

    (viii) Fixed Assets Rs. 5,00,000

    (ix) Closing Stock Rs. 50,000


    What conclusion you can derive from the above analysis regarding the profitability and
    effectiveness of fixed assets utilization w.r.t capital invested?

    Also throw light on the short term solvency of the firm.

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