Group 1 (16MBA1161 to 16MBA1199)

1. The following is the profit and loss account of HS Ltd., for the year ended 31 st March 2002.
Dr.

Cr.
Rs.

Rs.
50,000
1,10,000
30,000
20,000
4,000
2,400
500
600
2000
1000
2000
2000

To Opening Stock
By Sales
To Purchases
Cash
33,000
To Wages
Credit
1,72,000
To Factory Expenses
2,05,000
To Office Salaries
Less: Returns
5000
To Office Rent
By Closing Stock
To Postage & Telegram
By Dividend on Investments
To Directors Fee
By Profit on Sale of Plant
To Salesman Salaries
To Advertising
To Delivery Expenses
To Debenture Interest
To Depreciation:
Office Furniture
1000
Plant
3000
Cars
2000
To Loss on Sale of car
500
To Income Tax
17,500
To Net Profit
14,500
You are required to prepare vertical income statement from the above so as to facilitate the income
statements analysis.
2. From the following particulars, determine the amount of gross profit and sales.
Average Inventory
Rs. 95000
Inventory Turnover Ratio
3 times
Gross Profit
25% of sales
3. What is meant by comparative financial statement? Why is it prepared?
Group 2 (16MBA1201 to 16MBA1483)
1. The accountant of Synthetic Industries Limited submits the following statements for 2001:
Trading and Profit and Loss A/c for the year 2001
Particulars
To opening stock
To purchases
To gross profit c/d
To depreciation on assets let out
To other expenses
To tax
To net profit

Rs
25,000
5,00,000
1,25,000
6,50,000
50,000
30,000
40,000
85,000
2,05,000

Particulars
By sales
By closing stock

Rs
6,25,000
25,000

By gross profit b/d

By returns from assets let out

6,50,000
1,25,000
80,000
2,05,000

2,00,000
60,000
1,000
2,000

Balance Sheet as on 31-12-2001

Liabilities
Share Capital
Sundry Creditors
Bank overdraft
Tax Provision
Less: Tax

Rs.
2,74,000
80,000
25,000
40,000
39,000

1,000
3,80,000
Rearrange the above in a form suitable for analysis.

Assets
Cash
Debtors
Stock
Let-out Assets cost
Less: Depreciation

Rs.
5000
1,00,000
25,000
4,00,000
1,50,000

2,50,000
3,80,000

2. Stock Turnover ratio- 6 times; Gross profit- 20% of sales; Sales Rs. 180,000; Closing stock is
Rs. 15,000 in excess of opening stock. Find the value of opening stock and closing stock.
3. What is common size balance sheet and common size income statement? Explain the
technique of preparing common size statement.