Accountancy

From the following information, calculate Net Profit before Tax and Extraordinary Items:

 ParticularsAmount(Rs.)Surplus, i.e., Balance in Statement of Profit and Loss (Opening)1,00,000Surplus, i.e., Balance in Statement of Profit and Loss (Closing)3,36,000Dividend paid in the current year72,000Interim Dividend Paid during the year90,000Transfer to Reserve1,00,000Provision for Tax…

Continue ReadingFrom the following information, calculate Net Profit before Tax and Extraordinary Items:

Calculate Net Profit before Tax and Extraordinary Items of Premier Sales Ltd. from its Balance Sheet as at 31st March, 2019: 

ParticularsNote No.31st March, 2019Amount (Rs.)31st March, 2018Amount (Rs.)I. EQUITY AND LIABILITIES 1. Shareholders' Funds (a) Share Capital 5,00,0005,00,000(b) Reserves and Surplus(Surplus, i.e.,  Balance in Statement of Profit and Loss) 2,00,0001,45,0002. Current Liabilities (a) Trade Payables 90,00050,000(b) Other Current…

Continue ReadingCalculate Net Profit before Tax and Extraordinary Items of Premier Sales Ltd. from its Balance Sheet as at 31st March, 2019: 

Following is the extract from the Balance Sheet of Zee Ltd .:

Particular31st March 2019Amount( Rs.)31st March 2018Amount( Rs.)Equity Share Capital8,00,0008,00,00010% Preference Share Capital6,00,0006,00,000Surplus i.e., Balance in Statement of Profit and Loss7,20,0004,00,000Unpaid Dividend20,000– Additional Information:(i) Proposed dividend on equity shares for the year 2017-18 and 2018-19 are…

Continue ReadingFollowing is the extract from the Balance Sheet of Zee Ltd .:

Following are the extracts from the Balance Sheet of MAH Ltd. as at 31st March, 2019:

Particular31st March 2019Amount (Rs.)31st March 2018Amount (Rs.)Surplus, i.e., Balance in Statement of Profit and Loss10,00,0005,00,000Dividend Payable50,000– Additional Information: Proposed Dividend for the years ended 31st March, 2018 and 2019 are Rs. 4,00,000 and Rs. 5,00,000 respectively.Prepare…

Continue ReadingFollowing are the extracts from the Balance Sheet of MAH Ltd. as at 31st March, 2019:

For each of the following transactions, calculate the resulting Cash Flow and state the nature of Cash Flow, i.e., whether it is Operating, Investing or Financing: (a) Acquired machinery for Rs. 2,50,000 paying 20% by cheque and executing a bond for the balance payable. (b) Paid Rs. 2,50,000 to acquire shares in Informa Tech Ltd. and received a dividend of Rs. 50,000 after acquisition. (c) Sold machinery of original cost of Rs. 2,00,000 with an accumulated depreciation of Rs. 1,60,000 for Rs. 60,000.

SOLUTION (a) Investing Activity: 50,000(b) Investing Activity: 2,00,000(c) Investing Activity: 60,000

Continue ReadingFor each of the following transactions, calculate the resulting Cash Flow and state the nature of Cash Flow, i.e., whether it is Operating, Investing or Financing: (a) Acquired machinery for Rs. 2,50,000 paying 20% by cheque and executing a bond for the balance payable. (b) Paid Rs. 2,50,000 to acquire shares in Informa Tech Ltd. and received a dividend of Rs. 50,000 after acquisition. (c) Sold machinery of original cost of Rs. 2,00,000 with an accumulated depreciation of Rs. 1,60,000 for Rs. 60,000.

State which of the following would result in inflow / outflow or no flow of Cash and Cash Equivalents: (a) Sale of Fixed Assets, Book Value Rs. 1,00,000 at a profit of Rs. 10,000. (b) Sale of goods against cash. (c) Purchase of machinery for cash. (d) Purchase of Land and Building for Rs. 10,00,000. Consideration paid by issue of debentures. (e) Issued fully paid Bonus Shares. (f) Cash withdrawn from bank. (g) Payment of Interim Dividend. (h) Proposed Dividend.

SOLUTION Inflow OutflowNo Flow(a.) Sale of Fixed Assets(c.) Purchase of Machinery for cash(d.) Purchase of Land and Building.Consideration paid by issue of Debentures.(b.) Sale of goods against cash(g.) Payment of Interim…

Continue ReadingState which of the following would result in inflow / outflow or no flow of Cash and Cash Equivalents: (a) Sale of Fixed Assets, Book Value Rs. 1,00,000 at a profit of Rs. 10,000. (b) Sale of goods against cash. (c) Purchase of machinery for cash. (d) Purchase of Land and Building for Rs. 10,00,000. Consideration paid by issue of debentures. (e) Issued fully paid Bonus Shares. (f) Cash withdrawn from bank. (g) Payment of Interim Dividend. (h) Proposed Dividend.

Identify the transactions as belonging to: (i) Operating Activities, (ii) Investing Activities, (iii) Financing Activities and (iv) Cash and Cash Equivalents:

(a) Cash Sale of Goods(b) Cash Received against Revenue from Services rendered(c) Cash Purchase of Goods(d) Cash Paid against Services Taken(e) Patents Purchased(f) Marketable Securities(g) Bank Overdraft(h) Proceeds from Issue…

Continue ReadingIdentify the transactions as belonging to: (i) Operating Activities, (ii) Investing Activities, (iii) Financing Activities and (iv) Cash and Cash Equivalents:

From the following information, calculate Return on Investment (or Return on Capital Employed):

ParticularsAmount(Rs.)Share Capital5,00,000Reserves and Surplus2,50,000Net Fixed Assets22,50,000Non-current Trade Investments2,50,000Current Assets11,00,00010% Long-term Borrowings20,00,000Current Liabilities8,50,000Long-term ProvisionNIL SOLUTION Net Profit before tax = 6,00,000Net Profit before interest, tax and dividend = Net Profit before…

Continue ReadingFrom the following information, calculate Return on Investment (or Return on Capital Employed):

From the following information related to Naveen Ltd., calculate (a) Return on Investment and (b) Total Assets to Debt Ratio: Information: Fixed Assets Rs. 75,00,000; Current Assets Rs. 40,00,000; Current Liabilities Rs. 27,00,000; 12% Debentures Rs. 80,00,000 and Net Profit before Interest, Tax and Dividend Rs. 14,50,000. 

SOLUTION 1) Return on InvestmentReturn on Investment = Net Profit Before Interest, Tax and Dividend / Capital Employed × 100Net Profit Before Interest, Tax And Dividend = Rs. 14,50,000Capital Employed…

Continue ReadingFrom the following information related to Naveen Ltd., calculate (a) Return on Investment and (b) Total Assets to Debt Ratio: Information: Fixed Assets Rs. 75,00,000; Current Assets Rs. 40,00,000; Current Liabilities Rs. 27,00,000; 12% Debentures Rs. 80,00,000 and Net Profit before Interest, Tax and Dividend Rs. 14,50,000.