Commerce Guide

2020
FINANCIAL REPORTING AND FINANCIAL STATEMENT ANALYSIS — HONOURS Paper:
DSE 6.1A
Full Marks: 80
Group - A
Answer
15×2 any two questions.
1. What are included in a complete set of financial statements as per Ind AS 1?
2. Briefly describe different concepts of fund.
3. Given, Current ratio = 2.8; Quick ratio = 1.9; Stock turnover (on sales) = 3 months and Sales = ₹ 36,00,000. Find
the value of current assets and current liabilities assuming no overdraft and prepayments.
4.From the following information, prepare a comparative income statement:

31.03.2019 31.03.2020

Particulars (₹) (₹)

Revenue from operations (Sales) 3,75,000 5,25,000

Other Income 20,000 30,000

Cost of Goods sold 3,00,000 3,90,000

Administration Expenses 1,25,000 15,000

Selling and Distribution Expenses 10,000 15,000

Income Tax 30% 30%

Group – B
Answer any two questions.
5. (a) Differentiate between Traditional and Modern Approaches to financial statement analysis. Please
(b) From the trend percentages supplied below, prepare a comparative statement of Current Assets in absolute
value taking 2016 as the base year. 12+13
Trend Percentage Corresponding Value of Current Assets

2017 2018 2019 2019 (₹)

120 130 150 7200 - Cash at Bank

130 140 200 13600 - Debtors

160 220 250 8000 - Finished Goods

175 250 300 9000 - W.I.P.

110 150 175 3500 - Raw Materials

6. From the Balance Sheet of H Ltd. And S Ltd. And the notes as at 31.03.2020, following balances
and information are available:

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 Particulars H. Ltd. (₹) S. Ltd. (₹)
Equity Share Capital (₹10 each fully paid) 800000 300000
General Reserve 200000 80000
Trade Payables 280000 70000
Balance in Statement of Profit & Loss 250000 100000
Land and Building 600000 320000
Plant and Machinery 400000 100000
Investments (24,000 shares in S Ltd.) 280000 -
Trade Receivables 160000 80000
Stock 60000 40000
Cash and Bank 30000 10000
Additional information:
(a) H Ltd. Acquired 24,000 Equity shares of S Ltd. on 01.04.2019 at cost of ₹2,80,000 and
immediately after acquisition. H Ltd. Received dividend from S Ltd. on equity shares @ 20%
for the year 2018-19 and credited the amount to its Profit and Loss A/c.
(b) On 01.04.2019 S Ltd. had ₹50,000 in General Reserve and ₹80,000 in Profit and Loss
Statement.
(c) Goods were sold by H Ltd. at cost plus 25% and stock of S Ltd. includes ₹10,000 of such
goods.
You are required to prepare the Consolidated Balance sheet of H Ltd. with its subsidiary S Ltd. as
at 31.03.2020.
7. Given below is the summary of assets and liabilities of Speed Ltd. as at 31.03.2019 and
31.03.2020.
31.03.2019 31.03.2020
Particulars (₹) (₹)
LIABILITIES and Equity:
Equity Shares Capital (₹10 each fully paid) 400000 480000
Balance in Statement of Profit & Loss 300000 390000
Long term Borrowing 380000 340000
Trade Payables 170000 125000
Provision for Tax 50000 55000
Total 1300000 1390000
Assets:
Property, Plant and Equipment (Tangible Assets) 700000 800000
Stock in Trade 220000 140000
Trade Receivables 230000 280000
Cash and Bank 150000 170000
Total 1300000 1390000
Additional information:
(a) Tangible Assets costing ₹1,00,000 (accumulated depreciation ₹70,000 was sold for ₹42,000 and
the profit or loss transferred to Profit and Loss A/c. depreciation charged during the year on
tangible assets was ₹1,10,000).
(b) Income tax and Dividend paid during the year were ₹58,000 and ₹66,000 respectively.
You are required to prepare the Fund Flow Statement of Speed Ltd. for the year ended
31.03.2020.

2
8.From the following information of a company, prepare a Cash Flow Statement as per
AS 3 for the year:
Particulars 31.03.2018 (₹) 31.03.2019 (₹)
I. Equity and Liabilities:
1. Shareholders' Fund
(a) Share Capital (Equity Shares of ₹ 100 each) 15,00,000 15,00,000
(b) Reserve and Surplus (Statement of Profit and Loss) 13,00,000 15,00,000
2. Current Liabilities 10,00,000 6,00,000
38,00,000 36,00,000
II. Assets:
1. Non-current Assets
Property, Plant and Equipment 15,00,000 18,00,000
2. Current Assets
Inventories 6,00,000 3,00,000
Trade Receivables 15,00,000 10,00,000
Cash and Cash equivalents 2,00,000 5,00,000
38,00,000 36,00,000
Additional Information:
(a) During the year company paid ₹ 2,00,000 as dividend.
(b) During the year one plant, whose book value was ₹ 1,00,000 was sold at a loss of ₹
25,000 and the company purchased plant for ₹ 6,00,000.
9. From the following information, prepare a Statement of Proprietors’ Fund with as many details as possible:
• GP ratio = 25%
• Current ratio = 1.5
• Stock to Current Liabilities = 1/2
• Stock turnover ratio (based on cost) = 73 days [assume, 1 year = 365 days]
• Fixed assets to Net worth = 0.80
• Debtors turnover = 4 times
• Gross profit = ₹ 3,00,000
• Reserve to Share Capital = 1/3
10. (a) What do you mean by financial statement analysis? Discuss three objectives of financial
statement analysis.
(b) State the limitations of ratio analysis.

2020
FINANCIAL REPORTING AND FINANCIAL STATEMENT ANALYSIS —
GENERAL Paper: DSE 6.1A
Full Marks: 80
Group - A
Answer any two questions.
1. What are the components of financial statements as per Ind-AS-1- Preparation of
Financial Statements?
2. From the following data, compute the (a) Gross profit ratio (b) Net profit ratio and (c)
Operating expenses ratio.
Sales ₹ 8,00,000
Cost of Goods Sold ₹ 3,00,000
Administrative and Selling expenses ₹ 2,00,000
Tax rate ------------

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Interest expense -------------

3. From the following information, compute fund flow operation:

Net Profit Rs. 25,000
Net Profit is Calculated after consideration the following term:
Depreciation Rs. 20,000
Loss on Sale of Assets Rs. 5,000
Income from Investment Rs. 2,500
4. What is Financial Statement Analysis? State three needs of Financial
Statement Analysis?
GROUP – B
Answer any two questions.
5. (a) From the following information, calculate trend percentage taking 2017 as
base year.
Year Fixed Assets Sales

2017 1,00,000 8,00,000

2018 1,50,000 10,00,000

2019 1,80,000 13,50,000

2020 2,60,000 15,80,000

(b) Distinguished between comparative Statement and Common Size Statement?
6. The Balance Sheet of H. Ltd. and S. Ltd. as at 31.03.2020 are as follows:
Particulars H.Ltd S.Ltd
Liabilities & Equities :
Shareholder's Fund :
Equity Share Capital (₹ 10 each) 500000 200000
Reserve & Surplus :
General Reserve 200000 130000
Profit & Loss Account 250000 100000
Non Current Liabilities :
Current Liabilities
Creditors 280000 170000
Total 1230000 600000
Assets:
Non Current Assets
Property,Plant & Equipment
Land & Building 700000 370000
Non Current Investment
Investment in shares of S.Ltd. 160000
Current assets
Inventories 140000 140000
Debtors 180000 60000
Cash & Bank 50000 30000

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 Total 1230000 600000

Further information:
I.H Ltd. acquired 12,000 shares in S Ltd. on 01.04.2019 when the Reserve and Surplus of S
Ltd., was as under:
(i) General Reserve – Rs. 50,000
(ii) Profit and Loss – Rs. 20,000
II.Debtors of H Ltd., include Rs. 30,000 for goods supplied by H. Ltd.
Prepare a Consolidated balance Sheet of H Ltd. And its subsidiary S Ltd. as on, 31.03.2020.
7. From the following information, prepare the Balance Sheet of Sunny Ltd. as on
31.03.2020.
Current Ratio 2:1

Liquid Ratio 1.25 : 1

Fixed Assets to Proprietorship 0.75 : 1

Ratio

Working Capital (Net) Rs. 8,000

Reserve and Surplus Rs. 2,000

Long term-loan ----

(Not required to follow Schedule III format of Balance Sheet)
8. The following are the Balance Sheet of Axis Ltd. as on 31.03.2019 and 31.03.2020:
H Ltd. S Ltd.

I. Equity and Liabilities:

Shareholders’ Funds:

Equity Shares Capital 6,00,000 8,00,000

Reserve and Surplus:

General Reserve 30,000 40,000

Profit and Loss 1,00,000 1,50,000

Non-Current Liabilities ---- ----

Current Liabilities:

Sundry Creditors 2,50,000 2,62,0000

Outstanding Expenses 10,000 8,000

Provision for Tax 20,000 35,000

Total 10,10,000 12,95,000

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 II. Assets

Non-Current Assets

Property, Plant and Equipment:

Land (at cost) 4,20,000 5,35,000

Plant and Machinery (at WDV) 4,40,000 5,80,000

Current Assets:

Inventories 60,000 80,000

Debtors 50,000 40,000

Cash and Bank 40,000 60,000

Total 10,10,000 12,95,000

Additional information:
1. Depreciation charged during the year Rs. 80,000.
2. Dividend paid Rs. 60,000 during the year.
Prepare Cash Flow Statement under AS – 3.
9. From the following information, prepare a fund Flow Statement for the year ended as
on 31.12.2019.
Liabilities 2018 2019 Assets 2018 2019
(Rs.) (Rs.) (Rs.) (Rs.)

Capital 3,00,000 3,50,000 Land and 2,20,000 3,00,000

Building

Bank overdraft 3,20,000 2,00,000 Machinery 4,00,000 2,80,000

Bill payable 1,00,000 80,000 Stock 1,00,000 90,000

Creditors 1,80,000 2,50,000 Debtors 1,40,000 1,60,000

Cash 40,000 50,000

9,00,000 8,80,000 9,00,000 8,80,000

Additional information:
1. Net profit for the year 2019 amounted to Rs. 1,20,000.
2. During the year a Machinery having Book Value of Rs. 30,000 was sold for Rs. 26,000.

10. (a) Distinguish between Fund Flow and Cash Flow Statement.
(b) State the Limitations of Ratio Analysis?

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 2021
FINANCIAL REPORTING AND FINANCIAL STATEMENT ANALYSIS —
HONOURS
Paper: DSE 6.1A
Full Marks: 80
Group – A
Answer any four questions:
1. From the following data relating to two companies, prepare Common Size
Income Statement for the year ended 31.03.2021 and state which of the
companies is having (i) Relating lower ‘cost of goods sold’ and (ii) Relatively lower
‘cash operating expense’.
(Figures are in ‘000 Rs.)

Particulars Sika Ltd. Zika Ltd.

Sales 16,000 9,500

Other Income 300 200

Total (A) 16,300 9,700

Cost of Goods Sold 11,520 6,500

Cash Operating Expenses 2,400 1,700

Total (B) 13,920 8,200

EBDIT [C = (A – B)] 2,380 1,500

2. Following particulars are made available to you:

• EBIT for the year 2020 – 21 Rs.92,000 and Rate of Income Tax 25%. • 12%
Debentures Rs.1,00,000.
• Share Capital on 31.03.2021:
10% Cumulative Preference Shares of Rs.80,000 and 10,000 Equity Shares of Rs.10
each fully paid.
Calculate EPS when _
a) No equity shares were issued during the year
b) 2,400 equity shares were issued on 30.11.2020.
3. Compute the following information statement showing increase or decrease in Working
Capital: 10
Balance of Current 31.03.2020 31.03.2021 Effect on Working
Assets & Current (Rs.) (Rs.) Capital (Rs.)
Liabilities
Inventory 50,000 ? 8,000 (Increase)
Trade Receivable ? 28,600 7,900 (Decrease)
Prepaid Expenses ? 3,900 3,600 (Increase)
Advance to Supplies 12,000 ? 2,700 (Increase)

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 Cash & Bank 21,700 18,300 ?
Trade Payable ? 15,300 2,700 (Increase)
Outstanding Expenses 4,900 ? 400 (Decrease)
Advance from Customers 7,600 Nil ?
Working Capital ? ? ---
4. What do you mean by Financial Statement Analysis? Why such analysis is required?
Mention five parties who are interested in such analysis?
5.Calculate the average collection period from the following details taking 365 days in a
year:
Average inventory: Rs.2,73,750
Balance of Receivables: Opening Rs.2,80,000 and Closing Rs.3,04,000
Inventory turnover ratio (Based on cost) = 2 months
G. P Ratio = 10% and Credit sales to Total sales = 80%
6. What do you mean by Accounting Ratio? What are its Limitation?

7. Find the sales of the base year and other missing date from the following figure of Zap Ltd
Year 2016 2017 2018 2019 2020

Sales 47,200 ? 63,200 72,800 ?

(Rs.’000)

Trend 118 134 ? ? 213

8. (a) State the assets to which Ind AS 16: Property, Plant and Equipment does not
apply.
(b) What are the conditions need to be satisfied in order to recognise the cost of an
item
of properly, plant and equipment as an asset?
(c) Define caring amount and depreciation amount as per Ind AS 16.
Group – B
Answer any two questions:
9. Following are the Liabilities and Assets of Amrapali Ltd. as on 31.03.2020 and
31.03.2021:
Particulars 31.03.2020 31.03.2021
(Rs.) (Rs.)
I. Equity and Liability:
1. Shareholders' Funds:
(a) Equity share Rs.10 each fully paid 8,00,000 10,00,000
(b) Reserve and Surplus:
Securities Premium 1,00,000 1,20,000
General Reserve 3,60,000 4,40,000
Profit and Loss Balance 2,20,000 2,96,000
2. Non-Current Liabilities:
Bank Loan 4,20,000 4,60,000
3. Current Liabilities:
Trade Payable 1,66,000 2,16,000

8
 Provision for Tax 2,00,000 2,10,000
Total 27,42,000 27,42,000
II: Assets:
1. Non-Current Assets:
(a) PPE: Tangible 17,00,000 20,60,000
(b) Non-Current Investment 96,000 1,24,000
2. Current Assets:
Inventory 2,40,000 2,30,000
Trade Receivable 1,60,000 2,40,000
Cash & Cash Equivalents 70,000 88,000
Total 27,42,000 27,42,000
Additional information:
(a) Dividend paid during the year Rs.75,000.
(b) The company sold part of the fixed assts fir Rs.24,000 (WDV Rs.20,000). Depreciation
charged on fixed assets during the year Rs.1,40,000.)
(c) Interest on Bank Loan accrued and paid during the year Rs.24,000.
(d) Income tax provided during the year Rs.1,98,000.
You are required to prepare the Cash Flow Statement of Amrapali Ltd. for the year ended
31.03.2021.
10. From the following information of Mr. Talapatra, prepare a Trading Account, Profit
and Loss Account for the year ended on 31.12.2020 and a Balance of Sheet as on
31.12.2020:
Gross Profit Ratio 33⅓ %
Net Profit 25% of turnover
Stock Turnover Ratio 10 times
Current Liabilities/ External Liabilities 1/4
Fixed Assets/ Closing Capital 5/4
Closing Capital/ External Liabilities 1/2
Fixed Assets/ Current Assets 5/7
Fixed Assets Rs.40,00,000
Closing Capital is Rs.4,40,000 which is 10% more than the Opening Stock
11. From the Balance Sheet of H Ltd. as at 31.03.2021, and the Notes on accounts
thereon, following information are made available to you: 20
Particulars H Ltd. (Rs.) S Ltd. (Rs.)

Equity Share Capital (of Rs.10 each fully paid) 10,00,000 5,00,000

General Reserve 2,00,000 3,00,000

Balance in Statement of Profit and Loss 7,00,000 5,00,000

Trade Payable 5,00,000 6,00,000

Total 24,00,000 19,00,000

Land and Building 3,00,000 5,00,000

9
 Plant and Machinery 8,00,000 6,00,000

Investment (30,000 Equity Share in S Ltd.) 4,00,000 ---

Inventories 3,00,000 4,00,000

Trade Receivable 4,00,000 3,00,000

Cash and Bank 2,00,000 1,00,000

Total 24,00,000 19,00,000

Additional information:
(a) H Ltd. acquired 30,000 Equity shares of S Ltd. on 01.04.2020 at a cost of
Rs.4,75,000. On September 15, 2020, S Ltd. declared 25% divided for the year ended
2019 – 20 and
H Ltd. credited the receipt of dividend to its Investment Account.
(b) On 01.04.2020 S Ltd. had Rs.2,00,000 in General Reserve and Rs.3,25,000 in
Profit and Loss Account (Cr.)
(c) Trade Payable of S Ltd. include Rs.1,20,000 for purchase of goods from H Ltd. on
which H Ltd. made a Profit of Rs.30,000. Inventories of S Ltd. includes Rs.40,000 of
such goods. You are required to prepare the Consolidated Balance Sheet of H Ltd. with
its subsidiary S Ltd. as at 31.03.2021.
12. The summarized Balance Sheets of KPC Ltd. as at 31.03.2020 and 31.03.2021 were as
follows:
31.03.2020 31.03.2021
Particulars (₹) (₹)
LIABILITIES and Equity:
Equity Shares Capital (₹10 each) 300000 400000
General Reserve 130000 230000
Balance in Statement of Profit & Loss 80000 150000
12% Term Loan 100000 -
Trade Payables 125000 110000
Provision for Tax 65000 90000
Total 800000 980000
Assets:
Land and Building 215000 195000
Plant and Machinery 220000 290000
Investments 75000 40000
Inventories 146000 216000
Trade Receivables 110000 167000
Prepaid Expenses 15000 32000
Cash and Bank 19000 40000
Total 800000 980000
Additional information:

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(a) Investment costing ₹35,000 were sold at a loss of ₹7,000 (the loss is transferred to Profit and
Loss Account).
(b) Interest received on investment during current year amounted to ₹10,000.
(c) Income tax and dividend paid during the year were ₹85,000 and ₹40,000 respectively
(d) 12% Term Loan was repaid in full at the beginning of the year 2020-2021.
(e) Depreciation charged during the year on land and building and Plant and Machinery were
₹20,000 and ₹25,000 respectively.
You are required to prepare the Fund Flow Statement of KPC Ltd. for the year ended
31.03.2021 showing the changes in the working capital.

2021
FINANCIAL REPORTING AND FINANCIAL STATEMENT ANALYSIS —
GENERAL Paper: DSE 6.1A
Full Marks: 80
Group – A
Answer any four questions:
1. Discuss the Qualitative characteristics of Financial Statements?
2. MP Ltd. had an outstanding Equity Share of 3,00,000 of Rs.10 each as on 31.03.2019.
after tax profit for the year was Rs.6,00,000. MP Ltd. had 5000 10% convertible
debenture of Rs.100 each to be converted into Rs.10 Equity Shares as on 31.03.2019.
Tax rate is 30%.
Calculate: (a) Basis EPS (b) Diluted EPS.
3. Prepare a Statement of changes in Working Capital from the following Balance Sheet
of A & Co.
Liabilities 2019 Rs. 2020 Rs. Assets 2019 Rs. 2020 Rs.
Capital 800000 800000 Fixed Assets 800000 850000
Reserve and Surplus 300000 325000 Long term Investments 200000 150000
Long Term Loan 200000 150000 Stock 210000 228000
Sundry Creditors 55000 50000 Debtors 185000 175000
Trade Payables 30000 28000 Trade Receivable 35000 30000
Provision for Taxation 20000 25000 Cash and Cash Equivalents 45000 30000
Bank Overdraft 70000 85000
1475000 1463000 1475000 1463000
4. From the following Income Statement prepare a Common Size Income
Statement: Income Statement for the year ended 31st, March
Particulars 2019 (Rs.) 2020
(Rs.)

Net Sales 10,50,000 13,50,000

Less: Cost of Goods sold 5,70,000 6,45,000

Gross Profit 4,80,000 7,05,000

Less: Other Operating Expenses 1,50,000 2,16,000

Operating Profit 3,30,000 4,89,000

Less: Interest on Long – Term Debt 60,000 51,000

11
 Profit Before Tax 2,70,000 4,38,000

5. (a) Discuss the concept of Fund in a Fund Flow Statement?

(b) Identity the following items as sources or applications of fund:
i. Purchase of Land
ii. Sale of Investment
iii. Payment of Dividend
iv. Redemption of Debenture
v. Payment of Interest

6. From the following information of Telco Ltd. for the year ended 31.03.2021,
calculate the following ratios: 10
Particulars Amount (Rs.)

Sales (Fully Credit) 2,00,000

Purchase (Fully Credit) 1,20,000

Average Creditors 40,000

Average Debtors 20,000

a) Debtors Turnover Ratio

b) Creditors Turnover Ratio
c) Debtors Collection Period
d) Creditors Payment Period
(1 Year = 360 Days)
7. Distinguished between Cash Flow Statement and Fund Flow Statement?
8. (a) State the objectives of Ind AS – 16?
(b) Mention any 5 items which are to be capitalised while purchasing Plant and
Machinery as per Ind AS – 16?
Group – B
Answer any two questions:
9. The Standalone Balance Sheet H Ltd. and S Ltd. as at 31.03.2021 are given below:
Particulars H.Ltd S.Ltd
Liabilities & Equities :
Shareholder's Fund :
(a) Share Capital
Equity Share Capital (₹ 10 each) 280000 100000
(b)Reserve & Surplus :
General Reserve 40000 30000
Balance of Profit & Loss Account(Cr.) 60000 35000
Current Liabilities
Trade Payable
Creditors 50000 20000
Bills payable 10000 6000
Total 440000 191000

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 Assets:
Non Current Assets
(a)Property,Plant & Equipment
Land & Building 150000 60000
Plant & Machinery 120000 90000
(b)Non Current Investment
6000 Shares of S.Ltd. 75000
(C)Current assets
(i)Inventories(Stock-in-trade) 60000 11000
(ii)Trade Receivables(Debtors) 15000 20000
(iii)Cash & Cash Equivalent(cash & Bank) 20000 10000
Total 440000 191000
Additional information:
(a) H Ltd. acquired the shares of S Ltd. on 01.04.2020. S Ltd. had the following balances on
the date of acquisition:
(i) Profit and Loss Account Rs.25,000
(ii) General Reserve Rs.20,000
(b) On 15.08.2020 S Ltd. paid dividend for the year 2019 – 20 at 10% and H Ltd. credited its
share of dividend to P/ L A/c.
(c) S Ltd. goods of Rs. 25,000 to H Ltd. at a profit of 20% on sales. The goods are still lying
unsold.
(d)Sundry Creditors of H Ltd. include Rs.10,000 payable to S Ltd.
Prepare Consolidated Balance Sheet on 31.03.2021.
10. The Balance Sheet of Senbow Ltd. as at 31.03.2020 and 31.03.2021 are as follow:
Particulars 31.03.2020 31.03.2021
(Rs.) (Rs.)
Equity and Liability:
Shareholders' Funds:
(a) Share Capital
Equity Share Capital (Shares of Rs.10 each) 4,00,000 5,00,000
(b) Reserve and Surplus:
Securities Premium 50,000 60,000
General Reserve 1,80,000 2,20,000
Balance of Profit and Loss (Cr.) 1,10,000 1,48,000
Non-Current Liabilities:
Bank Loan 2,10,000 2,40,000
Current Liabilities:
(a) Trade Payable
Creditors 83,000 1,08,000
(b) Short Term Provision
Provision for Tax 1,00,000 1,05,000
Total 11,33,000 13,81,000
Assets:
Non-Current Assets:
(a) Property, Plant and Equipment 8,98,000 10,92,000
Current Assets:
(a) Inventories
Stock-in-trade 1,20,000 1,40,000

13
 (b) Trade receivables
Debtors 80,000 95,000
(c) Cash and Cash Equivalents
Cash & Bank 35,000 54,000
Total 11,33,000 13,81,000
Additional information for the year 2020-21:
(a) Dividend paid during the year Rs.40,000 for the year ended 2019-20.
(b) Company sold part Plant for Rs.32,000 (W. D. V. Rs.20,000). Depreciation charged
Rs.76,000 during the year.
(c) Interest accrued and paid during the year on Bank Loan Rs.24,000.
(d) Income Tax paid during the year Rs.1,16,000.
Prepare Cash Flow Statement of Senbow Ltd. for the year ended 31.03.2021 as per AS -3.
11. From the following particulars, prepare a Balance Sheet of Ananda Ltd. as at
31.03.2021 (Schedule 3 format is not required to be followed): 20 Fixed Assets to
Net Worth = 8: 9
Current Ratio = 3: 1
Fixed Assets = Rs.32,00,000
Reserve included in the Proprietors’ fund = 30%
Quick Ratio = 3: 2
Cash at Bank = Rs.1,00,000
10% Term Loan =?
Bank Overdraft = Nil
Current Liabilities = Rs.3,00,000
12. (a) What do you mean by Financial Statement Analysis? Discuss its need? (b)
Distinguished between Traditional and Modern Approach to Financial Statement
Analysis?
2022
FINANCIAL REPORTING AND FINANCIAL STATEMENT ANALYSIS HONOURS
Paper: DSE 6.1A
Full Marks: 80
Group-A
1. Specify three purposes of conceptual framework for preparation and presentation of
financial statements of a company.
Or,
Explain understandability "and" comparability' qualitative characteristics of financial
statements.
2.From the following information, calculate fund flow operation of Exe Ltd. Profit before Tax
(PBT) ₹ 2,40,000; Bad Debt written off ₹ 12,000; Office expenses charged ₹ 37,000;
Depreciation charged ₹ 32,000; Provision for tax debited to Statement of Profit & Loss ₹
44,000; Dividend Paid ₹ 20,000; Profit on Sale of asset credited ₹ 15,000 and Goodwill
amortized ₹ 25,000.
3 From the following calculate ROCE and Return on Net Worth: Share Capital ₹30,00,000;
General Reserve ₹15,00,000; Balance of Statement of Profit & Loss ₹5,00,000; 15% Long
Term Loan ₹30,00,000; PBT ₹17,50,000. Ignore tax.
Or,
Name the ratio that you would calculate in each of the following cases to indicate:
(a) The ability of the company to meet its current obligations.

14
Ans. Current ratio
(b) The rapidity with which accounts receivables are collected.
Ans. Debtors turnover ratio (Debt collection period)
(c) The ability to meet interest (and other fixed charges) obligations.
Ans. Interest coverage ratio.
(d) The profitability of equity funds invested in the firm.
Ans. Return on equity, earning per share
(e) The dividend paid in relation to earnings per share.
Ans. Dividend pay out ratio.
Group-B
4. From the following information relating to Simplex Ltd., calculate Basic EPS and Diluted
EPS as per Ind AS 33:
Net profit (after tax) for the current year ₹ 3,00,00,000
No. of outstanding equity shares 50,00,000 shares of ₹ 10 each

No. of 10% Fully Convertible Debentures 50,000 debentures of ₹ 100 each 12%
Cumulative Preference shares 50,000 shares of ₹ 100 each

Corporate tax rate 30%

Each fully Convertible Debenture will be converted into 8 equity shares of ₹10 each.
5. From the following information prepare a ‘Common size Income Statement’ for
the year ended 31st March 2022:
Office, Selling and Distribution Expenses ₹ 1,20,000
Total Cost of Sales 75% of Net Sales
Net Profit Before Tax ₹ 2,40,000
Other Income ₹ 40,000
Or,
Find the sales of the base period and other missing data from the following figures
of A Ltd.
Year 2017 2018 2019 2020 2021
Sales ('000): 1,980 ? 2805 3140 3798
Trend (%) 110 130 ? ? ?
Group-C
6. The statement of assets and liabilities of H.Ltd. and its Subsidiary S.Ltd. as on
31.3.2022 stored as follows :
Equity & Liabilities H.Ltd S.Ltd
Equity Share Capital(₹10) 10,00,000 3,00,000
General Reserve 4,00,000 3,60,000
Balance of Profit & Loss (Cr) 5,00,000 2,00,000
Trade Payables (Creditors) 5,60,000 3,40,000
24,60,000 11,00,000
Assets
Land & Building 10,00,000 4,40,000
Plant & Machinery 4,00,000 2,00,000
Investment in S.Ltd 3,00,000
Inventories 3,80,000 2,80,000
Trade Receivables (Debtors) 3,20,000 1,60,000

15
 Cash & Cash Equivalents 60,000 20,000
24,60,000 11,00,000
The following information is also available:
(a)H Ltd. acquired 24,000 equity shares of S Ltd. on 01.07.2021 at a cost of
₹ 3,00,000 and immediately after acquisition H Ltd. received dividend an equity shares
@ 20% for the year 2020-21. H Ltd. credited its share of dividend to Profit & Loss A/c.
(b) On 01.04.2021, the balance of General Reserve was ₹ 1,40,000 and the balance
of Profit & Loss was 80,000.
(c) Debtors of H Ltd. include 40,000 for goods sold to S Ltd. at cost plus 25 %, half of
the goods are still in stock.
Prepare Consolidated Balance Sheet of H Ltd. with its subsidiary S Ltd. as on 31.03.2022
7. Balance Sheet of Pixel Ltd. as at 31.03.2021 and 31.03.2022 were as follows:
Particulars 31.03.2020 31.03.2021
(Rs.) (Rs.)
I. Equity and Liabilities
1. Shareholders' Fund
a) Share Capital (Equity Shares of ₹ 10 each) 40,00,000 50,00,000
b) Reserves and Surplus 15,00,000 21,00,000
(Balance in Statement of 15,00,000 21,00,000 Profit &
Loss)
2. Non - Current Liabilities
a) Long term borrowing - Term Loan 15,00,000 10,00,000
3. Current Liabilities
a) Trade payables 8,00,000 5,00,000
b) Provision for Tax 2,80,000 3,50,000
Total 80,80,000 89,50,000
II. Assets
1. Non-Current Assets
a) Property, Plant and Equipment 45,00,000 52,00,000
2. Current Assets
a) Inventories 10,00,000 12,00,000
b) Trade Receivables 23,00,000 19,00,000
c) Cash and Cash equivalents 2,80,000 6,50,000
Total 80,80,000 89,50,000
Additional information:
(a) During the year the company paid income tax ₹ 3,20,000, Dividend ₹ 4,00,000 and
repayment of term loan of ₹ 5,00,000. The company also paid interest on term loan for the
year 2021-22 ₹ 1,80,000.
(b) Depreciation charged on property, plant and equipment during the year is ₹ 5,00,000.
Prepare a Cash Flow Statement as per AS - 3 for the year ended 31.03.2022.
Or,
Prepare a Fund Flow Statement of Y Ltd. from the following statement of assets and liabilities after
taking into consideration the additional information.
31.03.2019 31.03.2020
Particulars (₹) (₹)
LIABILITIES and Equity:

16
 Shares Capital (₹10 each fully paid) 1200000 1600000
Capital Reserve - 40000
Balance in Statement of Profit & Loss 840000 1060000
Debentures 800000 560000
Sundry Creditors 480000 536000
Provision for Tax 480000 484000
Total 3800000 4280000
Assets:
Property, Plant and Equipment 2280000 2640000
Trade Investments 400000 320000
Current Assets including Inventories 1120000 1320000
Total 3800000 4280000
Additional information:
a. Sold one machine for ₹1,00,000, the cost of the machine was ₹2,56,000 and the depreciation
provided for it amounted to ₹1,40,000,
b. Provided ₹3,80,000 on depreciation.
c. Redeemed 30% debentures @ ₹103.
d. Sold trade investments at profit and the profit was credited to capital reserve.
e. Decided to value the stock at cost, whereas the previous practice was to value the stock
at com less 10%. The stock according to books on 31.03.2021 was ₹2,16,000, stock on
31.03.2022 ₹ 3,00,000 was correctly valued at cost.
8. From the following information, prepare a Statement of Proprietors' Fund with as many
details as possible:
GP ratio = 25%
Current ratio = 1.5
1
Stock to Current Liabilities =
2
Stock turnover ratio (based on cost) = 73 days
Fixed assets to Net worth = 0.80
Debtors turnover = 4 times
Gross profit = ₹3,00,000
Reserve to Share Capital = 0.25
Non Trade Investment ₹ 70,0000
There is no borrowings.
Or
With the following ratios and further information given below, prepare a Trading Account,
Profit & Loss Account for the year ended 31.03.2022 and a Balance Sheet of Mr. Kapoor as
on that date.
1
Gross profit ratio =33 %
3
Net profit ratio = 25% of turnover
Stock turnover ratio 10 times
1
Current liabilities/External liabilities =
4
5
Fixed Assets/Closing capital =
4
1
Closing capital/External liabilities =
2
Fixed Assets 5
=
Current Assets 7
Fixed Assets = ₹40,00,000

17
Closing stock = ₹4,40,000 with is 10% more than the opening stock.

2022
FINANCIAL REPORTING AND FINANCIAL STATEMENT ANALYSIS
General
Paper: DSE 6.1A
Full Marks: 80
Group-A

Group - A
1. What are the underlying assumptions for preparation of Financial Statements in accordance
with the Ind-AS 1?

Or,

What are the components of financial statements as per Ind-AS 1?

2. From the following data compute Operating expenses ratio and Operating ratio.
Sales ₹10,00,000
Cost of goods sold ₹6,00,000
Administration and Selling expenses ₹50,000
Selling expenses ₹30,000
Tax rate 30%
Interest expenses Nil
3. From the following information compute fund from operation
Profit and Loss Balance at the beginning of the year ₹60,000
Profit and Loss Balance at the end of the year ₹1,30,000
Profit for the year is calculated after considering the following items:
Depreciation ₹25,000
Debenture interest ₹14,000
Amount transfer to General Reserve ₹10,000
Income from investment ₹2,500
Or,
What is Fund Flow Statement? Mention any two advantages for preparation of Fund Flow
Statement.
Group – B
From the following figure of the Balance sheet of L & T Ltd., prepare a Comparative
Balance Sheet:
Particulars 31.03.2020 (₹) 31.03.2021 (₹)
Equity Share Capital 4,00,000 5,00,000
Preference Share Capital 2,00,000 1,00,000
10% Debenture 1,50,000 1,00,000
Reserve and Surplus 40,000 70,000

18
 Long-term Loan 2,00,000 3,00,000
Investment 2,20,000 2,50,000
Fixed Assets 5,70,000 6,30,000
Current Assets 2,80,000 3,10,000
Current Liabilities 80,000 1,20,000
5. What are the general features of financial statement as per Ind- AS1? Discuss in brief.
. Or,
(a) ABC Ltd. is installing a new Plant at its factory to increase the production capacity. It has
incurred the following costs:
Cost of Plant ₹10,30,000
Initial delivery and handling cost ₹ 40,000
Cost of Site preparation ₹ 50,000
Installation cost ₹ 40,000
Administration expenses allocated ₹ 10,000
What cost can be capitalised in the Plant and Machinery A/c in accordance with Ind-AS 16?
(b) From the following information compute Earnings Per share as per Ind-AS 33.
Ordinary shares of ₹10 each fully paid ₹12,00,000
12% Preference shares of 10 each ₹ 6,00,000
Profit before tax during the year ₹4,00,000
Corporate tax rate 40%
Group - C
6.The stand alone Balance Sheet of H.Ltd and S.Ltd as on 31.03.2021 are as follows :
Note H Ltd. (₹) S Ltd. (₹)
Particulars No
I. EQUITY and LIABILITIES:
1. Shareholder's Fund
(a) Equity Share Capital ( Shares of ₹10 each) 600000 200000
(b) Reserve and Surplus
General Reserve 200000 130000
Balance of Profit & Loss (Cr.) 250000 100000
2. Non-Current Liabilities:
3. Current Liabilities:
Creditors 280000 170000
Total 1330000 600000
II. Assets:
1.Non-Current assets:
(a) Property, Plant and Equipment
Land & Building 700000 370000
(b) Non-Current Investments (Investment Shares in S Ltd.) 260000 -
2.Current Assets:
Inventories 140000 140000
Debtors 180000 60000
Cash at Bank 50000 30000
Total 1330000 600000
Further information :
(a) H. Ltd. acquired 16,000 shares in S. Ltd. on 01.04.2020 when the Reserve and
Surplus of S. Ltd. was as under :

19
(i) General Reserve - 60,000
(ii) Balance of Profit & Loss (Cr.) – ₹ 70,000
(b) Debtors of H. Ltd. include ₹ 40,000 for goods supplied by H. Ltd at a profit of 20%
on sales.
(c) The stock of S. Ltd. includes unsold transferred goods supplied by H. Ltd. ₹ 30,000.
(d) Land of S. Ltd. was upward revalued by ₹ 1,00,000 on the date of acquisition of
shares., but no entry was made in the books of S. Ltd.
Prepare a Consolidated Balance Sheet of H. Ltd. and its subsidiary S. Ltd. as on
31.03.2021..
. 7 From the following balance sheets of ABC Ltd on 31st December, 2020 and 2021, you are
required prepare a Funds Flow Statement.
Balance Sheet of ABC Ltd.
Note 31.12.2020 31.12.2021
Particulars No (₹) (₹)
I. EQUITY and LIABILITIES:
1. Shareholder's Fund
(a) Share Capital 100000 125000
(b) Reserve and Surplus
(i) Balance in Statements of Profit and Loss 12000 10000
(ii) General Reserve 15000 18000
2. Non-Current Liabilities: - -
3. Current Liabilities:
(a) Trade Payables
(i) Sundry Creditors 8000 6500
(ii) Bills Payable 1200 1000
(b) Short term Provision
(i) Provision for Taxation 18000 16000
(ii) Provision for Doubtful Debts 600 700
Total 154800 177200
II. Assets:
1.Non-Current assets:
(a) Property, Plant and Equipment-
(i) Building 45000 50000
(ii) Plant 40000 38000
(b) Intangible Assets
(i) Goodwill 12000 10000
(c) Non-Current Investments 10000 12000
2.Current Assets:
(a)Inventory 30000 38000
(b) Trade Receivables
(i) Bills Receivables 2000 2500
(ii) Debtors 14000 18000
(c) Cash and Cash Equivalents 1800 8700
Total 154800 177200
The following additional information have been given:
a. Depreciation charged on Plant was ₹4000 and on building was ₹5,000.
b. A Plant book value of which was ₹5000 was sold at ₹6,000.
c. Provision for taxation of ₹19000 was made during the year.
d. Interim dividend of ₹8000 was paid during the year.

20
 Or,
The Balance Sheet of Adani Ltd. as at 31.03.2020 and 31.03.2021 are as follows:
Particulars 31.03.2020 31.03.2021
(Rs.) (Rs.)
EQUITY AND LIABILITIES:
Shareholder's Funds:
(a) Share Capital
Equity Share Capital (Shares of Rs.10 each) 3,00,000 4,00,000
(b) Reserve and Surplus:
Securities Premium 40,000 60,000
General Reserve 2,00,000 2,20,000
Profit and Loss A/c 1,00,000 1,98,000
Non-Current Liabilities:
Bank Loan 2,10,000 1,20,000
Current Liabilities:
(a) Trade Payable
Creditors 80,000 1,00,000
(b) Short Term Provision
Provision for Tax 90,000 1,05,000
Total 10,20,000 12,03,000
ASSETS:
Non-Current Assets:
(a) Property, Plant and Equipment
Plant and Machinery 7,85,000 9,38,000
Current Assets:
(a) Inventories
Stock-in-trade 1,10,000 1,50,000
(b) Trade receivables
Debtors 90,000 55,000
(c) Cash and Cash Equivalents
Cash and Bank 35,000 60,000
Total 10,20,000 12,03,000
Additional information for the year 2020-21:
a) Final Dividend paid during the year ₹ 60,000 for the year 2019-20.
b) Company sold part of plant for ₹ 64,000 (W.D.V. ₹ 40,000). Depreciation charged
₹ 1,06,000 during the year.
c) Interest accrued and paid during the year on Bank Loan ₹ 36,000.
d) Income Tax paid during the year ₹ 96,000.
e) Interim dividend paid ₹ 15,000
Prepare Cash Flow Statement of Adani Ltd. for the year ended 31.03.2021 as per
AS-3 (under Indirect method).
8. From the following particulars, prepare a summarized balance sheet as at
31st December 2021. [Schedule 3 format is not required to be followed]
Non-current Assets to Net worth 0.8:1
Current Ratio 3:1

21
Reserve included in proprietors fund 25%

Acid Test Ratio 3:2

Non-current Assets 16,00,000

Cash and Bank Balance 30,000

Current Liabilities 3,00,000

The firm has no Bank overdraft.

Or,
(a) What is the meaning of financial ratio? Mention ratios which are used to evaluate the following
position of the firm (at least one in each case).
(i) Short-term liquidity
(ii) Long-term solvency
(iii) Profitability

(iv) Activity or Efficiency

(b) Discuss the limitations of accounting ratios?

2023
FINANCIAL REPORTING AND FINANCIAL STATEMENT ANALYSIS - HONOURS
Paper: DSE-6.1AH
Full Marks: 80

Group - A
1. Name the elements of financial statements and their measurement bases as per the conceptual
framework of Ind-AS.

Or,

What are the components of financial statements as per Ind-AS I?

2. From the following particulars, calculate the net cash flows from operating activities of Binoy
Ltd.:
₹

Operating profit after depreciation and amortization 1,50,000

Decrease in stock over the year 2,000
Depreciation and amortization 25,000
Increase in cash and cash equivalent over the year 5,000
Tax paid 10,000
Tax provided 11,000
Increase in debtors' balance over the year 7,000
Increase in creditors' balance over the year 8,000

3. From the following information, calculate the value of Fixed Assets :

22
Current Assets ₹1,50,000
Fixed Assets/Net worth 1.15
Current Liabilities ₹ 1,29,000
Long-term debt ₹ 51,000

Or,

From the following extract of Balance Sheet of Samiuddin Ltd. as at 31.03.2023, calculate
debt-equity ratio and capital gearing ratio of the company:
₹
Shareholders' Fund:
Equity share capital ( ₹ 10 each) 3,00,000
12% Preference share (₹ 100 each) 4,00,000
General Reserve 3,00,000
Profit and Loss Balance (50,000)
Non-current Liabilities:
8% Term Loan 3,00,000
10% Debenture 100 each) 5,00,000

Group - B
4. With the help of the following information for the year ended 2022, prepare a common-size
statement.
₹
Selling and Distribution Expenses 10,000
Administrative Expenses 20,000
Total operating cost 75% of Net sales
Income Tax 20% of Net profit before tax
Net income after tax 48,000
Other income 10,000

5. (a) What is potential ordinary shares? Give two examples of potential ordinary shares.
(b) From the following information, compute weighted average number of equity shares
outstanding at the end of the year 31.03.2023 and Basic EPS as per Ind-AS 33:
Equity shares opening balance on 01.04.2022 @ ₹10 each 80,000 shares
Public issue on 01.07.2022 @ ₹10 each 30,000 shares
Further public issue on 01.01.2023 @ ₹10 each 10,000 shares
Earnings attributable for Equity shareholders for 2022-23 ₹ 500,000

Or,
(a) What is property, plant and equipment’s as per Ind-AS 16? Mention any two items
excluded from the scope of Ind-AS 16.

(b) ABC Ltd. is installing a new plant at its production facility. It has incurred the following cost:
Cost of plant purchased less trade discount ₹2,00,000
Delivery and handling cost ₹20,000
GST paid (input tax credit available) ₹ 24,000
Cost of site preparation ₹15,000
Interest charged by supplier for deferred payment ₹10,000
Training cost (not directly attributable) ₹6,000
Calculate the amount to be capitalized and amount of depreciation as per Ind-AS 16, given that
residual value estimated after 5 years ₹12,000.

23
 Group - C

6. The Balance Sheets of H. Ltd. and S. Ltd. as at 31.03.2023 are as follows:

Particular H. Ltd. (₹) S. Ltd. (₹)
Equity and Liabilities:
Shareholders' funds:
Equity share capital (10 each) 3,00,000 2,00,000
12% Preference share capital (100 each) 1,00,000 -
Reserves and Surplus:
General Reserve 1,20,000 40,000
Balance of Profit & Loss (Cr.) 2,00,000 1,80,000
Current Liabilities:
Creditors 20,000 70,000
Provision for tax 15,000 16,000
Total 7,55,000 5,06,000
Assets
Non-current Assets :
Property, Plant and Equipment:
Land & Building 2,05,000 2,76,000
Non-current investment:
Investment in shares of S Ltd. 2,80,000 -
Current Assets :
Inventories 1,40,000 1,40,000
Debtors 80,000 60,000
Cash at Bank 50,000 30,000
Total 7,55,000 5,06,000
Further information:
(i) H. Ltd. acquired 10,000 shares in S. Ltd. on 01.01.2023. The balance of reserve and surplus
of S. Ltd. on 01.04.2022 was as under:
(A) General Reserve ₹1,60,000
(B) Profit & Loss Balance (Cr.) ₹70,000
(ii) On 01.03.2023, S. Ltd. issued three fully paid bonus shares for every five shares held out of
accumulated general reserve balance on 01.04.2022 and recorded the same.
(iii) S. Ltd. paid dividend on 01.02.2023 for the year 2021-22 @ 8% and H. Ltd. credited its share
in the Profit & Loss A/c.
(iv) Debtors of H. Ltd. include 40,000 for goods supplied by H. Ltd. at a profit of 20% on sales
and stock of S. Ltd. includes unsold transferred goods supplied by H. Ltd. ₹ 30.000.

Prepare a Consolidated Balance Sheet of H. Ltd. and its subsidiary S. Ltd. as on 31.03.2023.

7. The following is the summarised Balance Sheet of Sanbad Ltd. as on 31.03.2022 and
31.03.2023:
Particular 31.03.2022 31.03.2023
I. Equity and Liabilities: ₹ ₹
Shareholders' funds
Equity share capital of ₹10 each fully paid 16,00,000 18,80,000
General Reserve 6,80,000 8,00,000
Profit and Loss Balance (Cr.) 3,60,000 4,84,000
Securities premium - 56,000

24
 Non-current Liabilities
9% Debentures 4,00,000 2,80,000
Current Liabilities
Creditors 4,50,000 5,00,000
Provision for tax 3,60,000 3,00,000
Unclaimed dividend 30,000 20,000
Total 38,80,000 43,20,000
II. Assets
Non-current Assets
Property, Plant and Equipment-Machinery (Note 1) 22,80,000 26,40,000
Non-current Investment 4,00,000 3,20,000
Current Assets
Inventories 2,16,000 3,40,000
Debtors 8,94,000 10,10,000
Cash and Bank 90,000 10,000
Total 38,80,000 43,20,000

Note 1: Machinery
31.03.2022 31.03.2023
Machinery (at cost) 32,00,000 38,00,000
Less: Accumulated depreciation. 9,20,000 11,60,000
WDV 22,80,000 26,40,000
Additional information:
(i) The company sold one of the machinery for ₹1,00,000, the cost of which was ₹2,00,000 and
against which depreciation of ₹80,000 was provided.
(ii) The company sold part of investments at a loss of ₹12,000.
(iii) Interim dividend declared and paid for the year 2022-23 ₹1,88,000.
(iv) The company provided tax during the year ₹3,70,000.
(v) The company redeemed debentures at 10% premium at the end of the year. Premium on
redemption was provided out of general reserve.

Prepare Cash Flow Statement as per AS-3.

Or,

(a) State the differences between Fund Flow Statement and Cash Flow Statement.
(b) State along with the value whether the following transactions represents sources or
Applications of fund, where fund indicates working capital.
(i) Issue of bonus shares ₹200,000
(ii) Earnings before depreciation, interest and tax (₹62,000)
(iii) Redemption of Preference shares ₹40,000
(iv) Provision for tax ₹15,000.
(v) Exchange old asset of ₹20,000 for purchase of new asset ₹45,000 and balance paid in shares.
(vi) Creditors took investment having book value of ₹30,000 in full settlement of their claim
₹35,000.
(vii) Investment (long-term) worth ₹20,000 has been sold at a loss of ₹2,000.

8. From the following information, prepare the Income Statement and Balance Sheet of Tudu Ltd.
as at 31.03.2023:
Rate of Gross Profit 25%

25
Net Profit to Equity Capital 10%
Stock Turnover Ratio 6 times
Average Debt Collection period 3 months
Creditors Velocity 4 months
Current Ratio 2
Fixed Assets to Equity 80%
Capital Gearing Ratio 0.4
Reserve and Surplus to Equity share capital 25%
Preference Share Capital Nil

Gross Profit 6,00,000. Working notes should be shown clearly.

(Schedule III is not mandatory for the preparation of Income Statement and Balance Sheet).

Or,

(a) From the following particulars, prepare a statement of Proprietors' Fund of Dhanuk Ltd. a
at 31.03.2023:
Fixed assets to net worth = 0.8 : 1
Current ratio = 3 : 1
Fixed assets = ₹ 16,00,000
Acid test ratio = 3 : 2
Reserve included in proprietors' fund = 25%
Cash and Bank = ₹ 30,000
Long-term loan = ₹ 4,00,000
Bank overdraft = Nil

(b) Amul Ltd. has a profit margin of 5% and Asset Turnover of 2 times. What is the company's
Return on Investment? What will be the Return on Investment if Asset Turnover is doubled?

2023
FINANCIAL REPORTING AND FINANCIAL STATEMENT ANALYSIS - General
Paper: DSE-6.1AH
Full Marks: 80

Group A

1. Discuss the Scope of Ind-AS1.

Or.

Write the objectives of Ind-AS 1.

2. From the following information, compute Gross Profit Ratio:

Opening Stock - ₹50,000

26
Closing Stock 1.2 times of opening stock
Stock Turnover - 4 times
Sales - ₹2,50,000
3.From the following particulars calculate Fund from Operations.
₹
(i) Net profit for the year 2022-23 1,06,000
(ii) Transfer to General reserve in 2022-23 25,000
(iii). An old machine having book value of ₹30,000 was sold for 24,000
(iv) Goodwill written off 10,000
(v) Depreciation charged on the fixed assets 25,000
(vi) Dividend received on investment in shares 12,000
Or.

State the limitations of Fund Flow Statement.

Group - B

4. From the following data relating to two companies, prepare Common Size Income Statement
Quant Ltd. Nippon Ltd.
(₹) (₹)
Sales 16,00,000 9,50,000
Cost of Goods Sold 11,50,000 6,50,000
Cash Operating Expenses 24,000 17,000
Other Income 30,000 20,000

5. Discuss the basic recognition criteria of Property, Plant and Equipment" as per Ind AS 16.
Or
From the following information given by Parag Ltd., calculate Basic EPS as per Ind AS 33.
Profit before tax for the current year ₹ 1,00,00,000
Equity Share Capital @ ₹10 each ₹ 60,00,000
Equity Share Capital ₹ 10 each, ₹4 paid ₹ 20,00,000
12% Cumulative Preference Shares ₹ 50,00,000
Corporate Tax Rate applicable 30%

Group - C

6. H. Ltd. acquired 1200 Equity Shares in S. Ltd. on 01.04.2022. The statement of assets and
liabilities of H. Ltd. and its subsidiary, S. Ltd. as on 31.03.2023 stood as follows:
H. Lid. S. Ltd.
(₹) (₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds :
(a) Share Capital:
(i) Preference Share Capital of ₹10 each fully paid 1,00,000 --
(ii) Equity Share Capital of 100 each fully paid 5,00,000 1,50,000
(b) Reserves and Surplus:
General Reserve 3,40,000 6,000
Profit and Loss Balance (cr) 3,60,000 1,08,000
2. Non-Current Liabilities:
6% Debentures (Secured). -- 24,000
3. Current Liabilities:
Trade Payables - Sundry Creditors 1,00,000 44,300
TOTAL 14,00,000 3,32,300
II. ASSETS
1. Non-Current Assets
(a) Property, Plant and Equipment 8,72,000 2,01.300
(b) Non-current Investments 1,80,000 --
Investment in S. Ltd. (Shares of S. Ltd.)
2. Current Assets:

27
 (a) Inventories 1,36,000 50,600
(b) Trade Receivables – Debtors 2,00,000 70,000
(c) Cash and Cash Equivalents - Cash at Blank 12,000 10,400
TOTAL 14,00,000 3,32,300
Other Information
(i) On 01.04.2022 Profit and Loss of S. Ltd. stood at ₹77,500 (cr) and General Reserve at ₹3,000.
(ii) H. Ltd. revalued Plant and Machinery of S. Ltd. at the time of purchase of shares by ₹20,000
more than its book value (ignore depreciation).
(iii) Trade Receivables of S. Ltd. include ₹24,000 for sales to H. Ltd. on which S. Ltd. made a profit
of ₹ 6,000.
(iv) Inventory of H. Ltd. includes ₹8,000 of stock purchased from S Ltd.
You are required to prepare the Consolidated Balance Sheet of H. Ltd. with its subsidiary S. Ltd.
as at 31.03.2021

7. From the following Balance Sheet of Suhes Ltd on 31st March 2022 and 2021, prepare a cash
flow Statement for the year ended 31.01.2023
Balance Sheet of Subrata Lid.
Particulars Note 31.03.2022 31.03.2023
No. (₹) (₹)
1. EQUITY AND LIABILITIES
1. Shareholders' Fund :
(a) Share Capital 1,00,000 1,25,000
(b) Reserves and Surplus :
(i) Balance of Profit 12000 10,000
(ii) General Reserve 15,000 18,000
2. Non-Current Liabilities -- --
3. Current Liabilities
(a) Trade Payable
(i) Sundry Creditors 8000 6,500
(ii) Bill Payable 1,200 1,000
(b) Short-term Provision
Provision for taxation. 18,600 16,700
TOTAL 1,54,800 1,77,200
II. ASSETS
1. Non Current Assets :
(a) Property, Plant and Equipment :
(i) Building 45,000 50,000
(ii) Plant 40,000 38,000
(b) Intangible Assets
Goodwill 12,000 10,000
(c) Non Current Investment 10,000 12,000
2. Current Assets :
(a) Inventory 30,000 38,000
(b) Trade Receivables:
(i) Bills Receivables 2,000 2,500
(ii) Debtors 14,000 18,000
(c) Cash and Cash Equivalent 1,800 8,700
TOTAL 1,54,800 1,77,200
Additional information :
(i) Depreciation charged on plant was ₹5,000 and on building ₹4,000.
(ii) A plant, book value of which was ₹5,000 was sold at ₹7,000.
(iii) Provision for taxation of ₹19,000 was made during the year.
(iv) Interim dividend of ₹8,000 was paid during the year

Or,

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Following are the Liabilities and Assets of RIL. Ltd. as on 31.03.2022 and 31.03.2023:
Note 31.03.2022 31.03.2023
No. (₹) (₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds :
(a) Share Capital :
Equity Share Capital of ₹10 each 8,00,000 10,00,000
(b) Reserves and Surplus :
(i) Securities Premium 1,00,000 1,20,000
(ii) General Reserve 3,60,000 4,40,000
(iii) Profit and Loss Balance (cr.) 2,20,000 2,96,000
2. Non-Current Liabilities:
Bank Loan 4,20,000 4,60,000
3. Current Liabilities
(a) Trade Payables - Sundry Creditors 1,66,000 2,16,000
(b) Short-term Provision –
Provision for taxation 2,00,000 2,10,000
TOTAL 22,66,000 27,42,000
II ASSETS
1. Nan-Current Assets :
(a) Property, Plant and Equipment. 17,00,000 20,60,000
(b) Non-Current Investments 96,000 1,24,000
2. Current Assets :
(a) Inventories 2,40,000 2,80,000
(b) Trade Receivables - Debtors 1,60,000 1,90,000
(c) Cash and Cash Equivalents 70,000 88,000
TOTAL
22,46,000 27,42,000
Additional information :
(i) Dividend paid during the year ₹75,000.
(ii) The company sold part of the fixed assets for ₹ 24,000 (WDV @ ₹20,000). Depreciation charged
on fixed assets during the year ₹1,40,00).
(iii) Investment costing ₹16,000 were sold during the year for ₹19,000,
(iv) Income Tax provided during the year ₹1,98,000.
You are required to prepare a Cash Flow Statement of RIL Ltd. for the year ended 31.03.2023 as
per AS- 3.
8. From the following information relating to Sunlight Ltd., prepare a Balance Sheet as on
31.03.2023. [Schedule III format is not required]
• Current ratio = 2.5
• Liquid ratio = 1.5
• Net Working Capital - •3,00,000
• Cost of Goods sold / Closing Stock = 8 times
• Gross Profit Ratio - 25%
• Average debt collection period = 1.5 months
• Fixed Assets / Shareholder's Net worth = 0.75
Reserves and Surplus/ Share Capital = 0.50.
Or.
(a) What are the liquidity measurement ratios? Explain two of them with significance.
(b) Do you think that ratios are enough to analyze financial statements? Explain your view.

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