Hemchandracharya North Gujarat University 2001 B.Sc Computer Science 104 : Financial Accounting

Tax
Provision for
doubtful debts 30,000 24,000 Preliminary Expenses 30,000 20,000

19,50,000 19,94,000 19,50,000 19,94,000


Additional info :
(1) During the year 2000 , a part of machinery
(2) Costing Rs. 7,500 (accumulated depreciation
(3) There on being Rs. 2,500) was sold for Rs.3,000.
(4) Dividend of Rs. 1,00,000 was paid during the year ended 31st December 2000.
(5) Income tax of Rs. 50,000 was paid during the year 2000
(6) Depreciation for 2000 was given as follows :
Land and Building Rs. 40,000
Plant and machinery Rs. 50,000
OR
The Condensed balance sheet and profits and
Loss account of PQR Ltd. Are as under :
Balance sheet as on 31-03-2001

Liabilities RS Rs. Assets
Equity capital 1,00,000 Fixed assets (gross) 5,00,000
Reserves 2,25,000 Less : Accumulated
15% debenture 2,75,000 Depreciation 2,00,000
Current liabilities 1,50,000 Net fixed assets 3,00,000
Current assets 2,50,000
Inventories 2,50,000
Debtors 1,50,000
Cash and bank 50,000 4,50,000

7,50,000 7,50,000

Profit and Loss Account
For the year ended on 31-03-2001
Sales 9,50,000
Less : Cost of goods sold 7,20,000
Gross Profits 2,30,000

Less : Administrative exp. 60,000
Sales and distribution
Expenses 20,000
Depreciation 25,000 1,05,000
1,25,000
Add. Misc income 25,000
Profit before interest and taxes 1,50,000
Less : interest 30,000
1,20,000
Less : Taxes 50,000
Profit after taxes 70,000

compute the subsequent ratios :
(1) Current ratio
(2) Quick ratio
(3) Gross profit ratio
(4) Rate of return on investments
(5) Debt – equity ratio
(6) Stock turnover ratio

3 (a) Answer the subsequent : (any 2 )
(1) Define accounting state its function.
(2) Explain money measurement concept
(3) Briefly discuss “Cash – book “ as a
Division of journal
(4) Discuss the limitations of ratio analysis.
(b) Distinguish ranging from the subsequent : (any 1 )
(1) Financial accountancy and management
Accountancy
(2) Transactions and events.

Earning:   Approval pending.