Adikavi Nannaya University (ANU) 2007 B.B.M Management - Question Paper

* Q 2. The Mismanagement Ltd. always obtains that it is hard pressed for funds. In spite of borrowing funds at a high rate from Banks, they are not able to make payments to suppliers in time. The financial position of the company as reflected from the Balance Sheet for the last 2 years is as under: 16
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2005 2006
Rs. Lakhs Rs. Lakhs Rs. Lakhs Rs. Lakhs
Share Capital
(Rs. 10 every fully paid) 10.00 10.00
Profit and Loss A/c 1.65 11.65 0.45 10.45
Bank Overdraft 1.55 5.95
Sundry Creditors 1.00 6.00
14.20 22.40
Land and Buildings 3.00 5.00
Plant and Machinery 5.00 6.00
Less: Depreciation 1.20 3.80 1.80 4.20
Motor Cars 1.00 1.30
Less: Depreciation 0.40 0.60 0.60 0.70
Stock 2.20 7.20
Debtors 4.60 5.30
14.20 22.40
* The subsequent further info is available:
* (a) Dividend was paid in 2006 at the rate of 10%.
* (b) The company sold a motor car during 2006 for Rs. 8,000. This was purchased for Rs. 10,000 and its written down value in the books on 1-1-2006 was Rs. 5,000.
* Prepare cash flow statement as per AS-3 by indirect method.
* Q 3. From the subsequent particulars prepare a statement of sources and application of funds for the year ended 31-3-2006of M/s. Rimzim Ltd: 16
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* (a) Rimzim Ltd. issued 1,000 shares of Rs. 120 every and all shares are subscribed and fully paid up.
* (b) The company has redeemed preference shares for Rs. 1,00,000 at 10% premium. Premium was adjusted against securities premium.
* (c) Investments are sold for Rs. 50,000 (resulting in profit of Rs. 10,000).
* (d) Sale of machinery during the year Rs. 30,000 (resulting in loss of 5,000).
* (e) Purchase of Fixed assets Rs. 1,20,000.
* (f) Dividend paid Rs. 40,000 and income tax paid Rs. 35,000.
* (g) Working capital of the company was Rs. 1,20,000 on 1-4-2005 and Rs. 1,80,000 on 31-3-2006.
* (i) Depreciation given for the year was Rs. 50,000 and preliminary expenses written off was Rs. 10,000.
* Q 4. subsequent balances from the books of Account CHETAN Ltd. for the year ended 31-12-2006 you are needed to prepare vertical income statement and vertical Balance sheet: 16
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Particulars Amount

Earning:   Approval pending.