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

Rs. Particulars Amount
Rs.
Advertising 25,000 Sales Return 10,000
Interest Received 6,000 Bills Payable 43,000
Sales 12,00,000 10% Pref. Share Capital 1,50,000
Equity Share Capital 9,00,000 Debenture Interest 24,000
Salaries 1,80,000 Wages 1,85,000
Furniture and Fixture 2,00,000 Cash and Bank Balance 80,000
Outstanding Expenses 25,000 Debtors 2,00,000
P/L A/c (Credit. Balance) 1,30,000 Opening Stock 50,000
Bad Debts 5,000 General Reserve 75,000
Purchases 6,00,000 Creditors 1,00,000
Machinery 7,50,000 8% Debenture 4,00,000
Preliminary Expenses 10,000
Income Tax 10,000
Land and Building 7,00,000
* Closing Stock on 31-12-2006 is Rs. 1,50 000.
* Q. five Financial Position 16
*

Liabilities 2005
Rs. 2006
Rs.
Equity Share Capital 2,00,000 2,50,000
10% Pref. Share Capital 2,00,000 1,50,000
Reserve Fund 80,000 1,00,000
Profit and Loss Account 1,00,000 1,50,000
12% Debentures 2,00,000 3,00,000
Creditors 1,00,000 1,20,000
Bank Overdraft 50,000 20,000
Assets
Building 3,00,000 3,20,000
Machinery 1,50,000 1,80,000
Furniture 40,000 35,000
Investment 1,00,000 1,50,000
Stock 1,50,000 2,00,000
Debtors 1,00,000 1,20,000
Bank Balance 90,000 85,000

From the above info of Santhan Ltd. as at 31st March, 2005 and 2006 you are needed to comment with the help of comparative statement, after rearranging in suitable form for analysis.
*
* Q.6 subsequent is the Profit and Loss A/c and Balance Sheet of Adhiraj Ltd. 16
*

Profit and Loss A/c for the Year ended 31st December, 2006

Particulars Rs. Particulars Rs.
To Opening Stock 20,000 By Sales 4,50,000
To Purchases 2,00,000 By Closing Stock 80,000
To Wages 50,000
To Factory Expenses 70,000
To G. P. c/d 1,90,000
5,30,000 5,30,000
To Administrative Expenses 60,000 By Gross Profit b/d 1,90,000
To Selling Expenses 40,000 By Interest Received 5,000
To Interest on Loan 5,000
To Debenture Interest 8,000
To Net Profit 82,000
1,95,000 1,95,000
To Tax Provision 20,000 By Net Profit 82,000
To Proposed Dividend 20,000
To Balance Profit 42,000
82,000 82,000

Balance Sheet as on 31st December, 2006

Liabilities Amount
Rs. Assets Amount
Rs.
Equity Share Capital (Rs. 10) 2,00,000 Land and Building 1,75,000
9% Preference Share Capital 1,50,000 Machinery 1,50,000
8% Debenture 1,00,000 Furniture 1,00,000
Reserve 50,000 Goodwill 50,000
P/L A/c 30,000 Patents 50,000
Short Term Loan 1,00,000 Vehicles 1,40,000
(Repaid within 1 year) Investment 50,000
Bank Overdraft 75,000 Stock 80,000
Sundry Creditors 1,40,000 Debtors 90,000
Bills Payable 30,000 Bills Receivable 30,000
Provision for Tax 20,000
Proposed Divided 20.000
9,15,000 9,15,000

* Market price of equity share is Rs 7. compute the subsequent ratios:
* (a) Acid Test Ratio.
* (b) Capital Gearing Ratio.
* (c) Stock Turnover Ratio.
* (d) Debtors Turnover Ratio.
* (e) Creditors Turnover Ratio.
* (f) Return on Capital Employed Ratio.
* (g) Stock Working Capital Ratio.
* (h) Operating Ratio.
* Note: Vertical final accounts need not be prepared.
* Q.7 The subsequent info are available for a firm for the year ended 31-12-2006: 16
(a) Gross Profit Ratio 25%
(b) Net Profit Ratio 20%
(c) Stock Turnover Ratio 10 times
(d) Net Profit/Capital 1/5
(e) Capital/Other Liabilities 1/2
(f) Fixed Assets/Capital 5/4
(g)Fixed Assets/Current Assets 5/7
(h)Fixed Assets Rs. 5, 00,000

* (i) Stock at the end Rs. 40,000 more than the stock, in the beginning.
* obtain Out:
* (a) Cost of Goods Sold
* (b) Gross Profit
* (c) Net Profit
* (d) Current Assets
* (e) Capital
* (f) Total Liabilities
* (g) Closing Stock
* (h) Total Assets
* Q.8 compute pattern percentage from the subsequent info extracted from financial statements of Perfect Ltd. afterarranging in vertical form and provide your comments: 16
* (RS. '000)
Particular 2003
Rs. 2004
Rs. 2005
Rs. 2006
Rs.
Sales 50,000 60,000 70,000 90,000
Cost of Goods Sold 30,000 36,000 42,000 54,000
Operating Expenses 10,00 11,000 12,000 13,000
Income Tax 50% 50% 50% 50%
Fixed Assets 10,000 ? 15,000 ?
Net Worth ? 12,000 ? 16,000
Working Capital 5,000 5,500 6,000 6,500
Long Term Loans 5,000 6,000 7,000 8,000
*
* Q.9(a) What is the impact of conversion of part of Debentures into equity shares on Debt-Equity Ratio which wasbefore conversion 1:1? (2)
* (b) State the impact of cash sales Rs. 40,000 (Cost Rs. 25,000) on Quick Ratio and Current Ratio. (2)
* (c) What is the impact of making adjustment of Interest Accrued on Debentures on Return on Capital Employed?(2)
* (d) Write short notes on any two: (10)
* (i) MIS Report.
* (ii) Manipulation of Accounts.
* (iii) Uses of Ratio Analysis.
* (iv) Flow of Funds.

Earning:   Approval pending.