University of Mumbai 2005 B.Com Management accounting - Question Paper

(5) Investments costing Rs. 75,000 were sold at Rs. 1,00,000.
Prepare Fund Flow Statement for the year ended 31st March, 2004.

Q.3. From the subsequent information, you are needed to prepare a Balance-Sheet in Horizontal form : (16)

Current Ratio 1.75
Liquid Ratio 1.25
Stock Turnover Ratio nine times (Based on Closing Stock)
Gross Profit Ratio 25%
Debtors collection period 1.5 months
Reserves and surplus to share capital 0.2
Cost of Goods sold to Fixed Assets 1.2
Capital Gearing (Long term Loans to Share Capital) 0.6
Fixed Assets to shareholders Funds 1.25
Sales for the year (All are on Credit Basis) Rs. 12,00,000

Current Assets consisted of Cash, Stock & Debtors only. The company has not issued pref. shares. There are no Bank Overdraft & Fictitious Assets.

Q.4. Maza Ltd. was formed and incorporated on first April, 2002. You are provided subsequent trial balance as on 31st March, 2003 & 31st March, 2004. You are needed to prepare vertical statement for both the years in columnar form. (16)

31st March, 2003 31st March, 2004
Dr. (Rs.) Cr. (Rs.) Dr. (Rs.) Cr. (Rs.)
Land and Building 25,50,000 -- 25,50,000 --
Machinery 5,50,000 -- 8,00,000 --
Furniture 2,00,000 -- 3,00,000 --
Sundry Debtors 3,00,000 -- 5,00,000 --
Cash & Bank Balance 1,00,000 -- 1,00,000 --
Sundry Creditors -- 2,00,000 -- 3,00,000
Outstanding Expenses -- 20,000 -- 20,000
Sales -- 20,00,000 -- 30,00,000
Purchases 12,00,000 -- 15,00,000 --
Opening Stock -- -- 3,00,000 --
Admin. Expenses 2,76,000 -- 3,70,000 --
P/L Opening Bal. -- -- -- 7,44,000
Selling Expenses 80,000 -- 1,10,000 --
Share Capital -- 20,00,000 -- 20,00,000
Unsecured Loan -- 10,36,000 -- 4,66,000
52,56,000 52,56,000 65,30,000 65,30,000

Adjustment : (1) Closing Stock as on 31st March, 2004 is Rs. 4,00,000.

Q.5. a) Horizon Ltd. engaged in the subsequent transactions. Identify whether it is (a) an Operating (b) an Investing (c) a Financing (d) none of the above. (5)
(1) Dividend paid. (2) Interest paid. (3) Issued long term bonds. (4) Purchased long term investment. (5) Equipment sold. (6) Dividend received on shares held. (7) Purchased land. (8) Received cash from customers. (9) Wages paid to workers. (10) Issued bonus shares out of general reserves.

Earning:   Approval pending.