Acharya Nagarjuna University (ANU) 2006 B.B.M Management - Question Paper

Creditors Turnover (Cost of goods Sold/Creditors) 12 Times
Gross Profit Ratio on Sales 25%
Proposed Dividend 20%


You are needed to complete the Balance Sheet as on 31-03-2005 with available information, working notes shall form part of your ans.
* Q.4 From the subsequent Balance Sheet, prepare Vertical balance sheet which is suitable for analysis and compute TrendPercentages taking 2003 as base year and comment on it.
16
Balance Sheets as at 31st December
Particular 2005
Rs. 2004
Rs. 2003
Rs.
Share Capital 50,000 50,000 50,000
Reserve and Surplus 5,000 10,000 10,000
Secured Loan 3,00 5,000 5,000
Unsecured Loan 2,000 - 6,000
Current liabilities 5,000 5,000 4,000
65,000 70,000 75,000
Particular 2005
Rs. 2004
Rs. 2003
Rs.
Fixed Assets (Net) 40,000 45,000 50,000
Investment 5,000 7,500 10,000
Stock 7,000 6,000 5,000
Debtors 10,000 9,000 7,000
Cash 3,000 2,500 3,000
65,000 70,000 75,000
*
* Q.5 From the info giver, beneath prepare Balance sheet in a vertical form, suitable for analysis and compute the subsequent ratios: 16
1. Capital Gearing Ratio.
2. ProDrietory Ratio.
3. Current Ratio.
4. Liquid Ratio.
5. Stock of Working Capital.
(Rs.) (Rs.)
Cash at Bank 12,500 Land and Building 2,00,000
Expenses paid in Advance 15,500 Stock 68,250
Creditors 1,01,500 Debtors 1,30,750
Bills Receivable 5,250 Plant and Machinery 1,36,000
12% Debentures 62,500 Loan from Director 1,00,000
Equity Share Capital 2,50,000 (Repayable after 3 years)
P & L A/c (Cr.) 54,250
*
* Q.6 The subsequent are the Balancesheets of Hayat Ltd. for the year ending 31st March, 2004 and 2005. 16
Liabilities 31-3-04
Rs. 31-3-05
Rs. Assets 31-3-04
Rs. 31-3-05
Rs.
Equity share capital 4,00,000 4,00,000 Fixed assets less depreciation 4,80,000 9,20,000
Preference share capital 2,00,000 2,00,000 Stock 80,000 40,000
Reserves 40,000 60,000 Debtors 2,00,000 1,50,000
Profit and loss account 30,000 40,000 Bills receivable 40,000 60,000
Bank overdraft 1,00,000 4,60,000 Prepaid expenses 20,000 24,000
Creditors 80,000 1,00,000 Cash at bank 1,00,000 1,66,000
Provision for taxation 40,000 50,000
Proposed Dividend 30,000 50,000
9,20,000 13,60,000 9,20,000 13,60,000


From the above prepare Vertical Balance Sheet suitable for analysis and do Horizontal comparison showing absolute Increase/Decrease and Percentage.
* Q.7 (a) On the morning of 31st December, 2005, the business had stock costing Rs. 50,000, Debtors Rs. 1,70,000, creditors Rs. 1,90,000 and cash at Bank Rs. 50,000. On that day the business has the subsequent transactions: 16
1. Purchased goods for cash Rs. 5,000 and credit Rs. 20,000.
2. Sale of Goods for cash Rs. 25,000 (cost of Goods Sold Rs. 20,000).
3. Collection from Debtors Rs. 45,000.
4. Paid Rent for Jan. and Feb. 2006 in advance Rs. 20,000.
5. Payments to creditors Rs. 1,00,000.
* All receipts and payments are by cheques.

You are needed to calculate on the morning and evening of 31st December, 2005,
* (i) Current Ratio.
* (ii)Acid Test Ratio.
(b) Stock Turnover of X Ltd. is eight times. four
* Sales for the year are Rs. 5,00,000 and Gross Profit Ratio is 25% on cost.
* Closing Stock is Rs. 10,000 more than Opening Stock
* obtain out closing stock.
* Q.8 A company plans to manufacture and sell 400 units of domestic appliances per month at price of Rs. 600 every forthe calendar year 2007. The ratio of cost of selling price are as follows: 16
% of selling price
Raw material 30
Packing material 20
Direct lab our 15
Direct expenses 5


Fixed overhead are estimated at Rs. 4,32,000 per annum.
* Stock were maintained as per subsequent.
Raw material 30 days
Packing material 15 days
Work in progress 7 days
Finished goods 200 Units
* subsequent additional info is given:
1. Credit sales represent 80% and customers enjoy 30 working days credit. Balance 20% are cash sales.
2. Creditors allow 21 working days credit for payment.
3. Lag in payment in overhead and expenses is 15 working days.
4. Cash requirements to be 12% of net working capital excluding cash.
5. Working days in a year are taken as 300.
Prepare working capital requirement for the year 2007.
* Q.9 Write short notes on any four: 16
* (a) Classification Assets.
* (b) Drawbacks of comparative statements in Interpretation of final accounts.
* (c) Selection of Accounting Software.
* (d) MIS.
* (e) discuss "Fund" and "Flow of Funds".
* (f) Consequences of Inadequate working capital.

Earning:   Approval pending.