Amity University 2007 B.Com ACCOUNTANCY - Question Paper

Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet of X and Y after Z’s retirement.

PART - B

(Analysis of Financial Statements)

Qs 16. Fine Garments Ltd. is engaged in the export of readymade garments. The company purchased a machinery of Rs 10,00,000 for the use in packaging of such garments State giving cause whether the cash flow due to the purchase of machinery will be cash flow from operating activities, investing activities or financial activities? (2)

Qs 17. State any 2 objectives of preparing a cash flow statement. (2)

Qs 18.

AKANKSHA LTD.

Profit & Loss accounts for the years ended 31st March, 2005 and 2006: (3)

20005 Rs.
20006 Rs.
Sales Revenue
Less Cost of Goods Sold
Gross Profit
Less Indirect Expenses
Profit before Tax
Less Tax 50%


1,00,000
47,000
52,000
4.600
48,000

_
1,30,000
66,360
63,640
19,640
44,000

_


Qs 19. discuss briefly any 3 advantages of analysis of financial statements. (3)

Qs 20. The Profit and Loss account of Surya Ltd. for the year ended three 1.3.2006 and the Balance Sheet of the Company as on three 1.3.2006 is provided below:

Profit and Loss Account for the year ended 31.3. 2006

Particulars Amt. Rs. Particulars Amt. Rs.
Opening Stock 40,000 Sales 4,40,000
Purchases 2,50,000 Closing Stock 20,000
Direct Expenses
30,000
Gross Profit 1,40,000
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

4,60,000
--------------------------------------------------------------------------------
4,60,000
--------------------------------------------------------------------------------

Salary
32,000 Gross Profit 1,40,000
Loss on sale of building 8,000
Net Profit 1,00,000
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

1,40,000 1,40,000

Balance Sheet as on three 1.3.2006

Liabilities Amt. Rs. Assets Amt. Rs.
Equity Share Capital 3,00,000 Land 4,00,000
Stock 20,000
Profit and Loss Account
1,00,000
Debtors 1,00,000
Creditors 1,50,000 Cash 80,000

Earning:   Approval pending.