University of Mumbai 2006 B.A Economics Management Accounting - A/c 3 - Question Paper

5,90,000 7,13,000 5,90,000 7,13,000

Additional Information:
Depreciation charged during 2005 was Rs. 4,000/- on Furniture. Rs. 12,000/- on Machinery and Rs. 20,000/- on Buildings.
Part of Machinery was sold for Rs. 15,000/- at a loss of Rs. 4,000/.
During 2005 interim dividend was paid Rs. 10,000 & Income Tax was paid Rs. 5,000/-.
During the year part of the Building was sold at book-value.
You are needed to prepare Cash Flow Statement as per AS. three (Use Indirect method).
Q 4. Re-write the subsequent statement of modifications in working capital by calculating the missing figures: - 16
Statement of modifications in working capital

Particulars 31-12-2004 31-12-2005 Working Capital
increase/ (Decrease)
(A) Current Assets
Stock 1, 00,000 ? 20,000
Debtors ? 70,000 ?
Cash 10,000 15,000 ?
Bank 25,000 ? 25,000
Bills Receivables 30,000 25,000 ?
Prepaid Expenses 5,000 ? 1000
(A) ? ? -
(B) Current Liabilities
Creditors 20,000 ? (10,000)
Bills Payable 10,000 5,000 ?
Outstanding Wages 3,000 ? 1,000
Outstanding Salary ? 4,000 ?
(B) 40,000 ? -
Working Capital (A-B) ? ? -
Increase in working capital 35,000
60,000

Q.5 A & B carrying on partnership business. Their position as on 31st March 2005, 2004& 2003 is as follows: 16
(i) Balance sheets as at 31st March :
(Rs. in lacs)
Assets 2005 2004 2003
Fixed Assets (at cost less Depreciation) 30.00 25.00 24.00
Investment 2.00 1.00 2.00
Stock in Trade 12.00 10.00 8.00
Accounts Receivable 18.00 15.00 12.00
Loans & Advances 8.00 8.00 6.00
Cash & Bank Balances 1.00 1.00 1.00
71.00 60.00 53.00
Liabilities
Partners' Capital Accounts 35.00 30.00 25.00
Partner's Current Accounts 6.00 4.00 4.00
Bank Loans 8.00 6.00 6.00
Sundry Creditors 22.00 20.00 18.00
71.00 60.00 53.00


(ii) Summarised Income Statements for the year ended 31st March :
(Rs. in lacs)
Particulars 2005 2004 2003
Net Sales 240.00 220.00 200.00
Less : Cost of Sales 180.00 170.00 150.00
Gross Margin 60.00 50.00 50.00
Less : Operating Expences 50.00 40.00 36.00
Net Profit before Tax 10.00 10.00 14.00


Prepare pattern Analysis Statement taking earliest year as the base. Writing Balance Sheet in vertical form suitable for analysis in pattern Statement is necessary.

Earning:   Approval pending.