BBS 1st Year Account Model_page2

Section C

Long Answer Questions

Attempt Any TWO Questions	(2 x 15=30)

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17. The ABC Company’s Statement of Profit and Loss a/c and Statement of Financial Position for two years have been given below:
    
    Statement of Profit and Loss a/c for the year 2075

    Particulars	Amount (Rs.)
    Sales (Including Rs.800,000 credit sales) Less: Cost of goods sold Gross Profit Less: Operating Expenses Depreciation Debenture Premium Interest paid Other Operating Expenses Net Income before other income Add: Profit from sale of fixed assets (book value Rs.40,000) Net profit	15,00,000 900,000
    	600,000 300,000 20,000 10,000 150,000
    	120,000 20,000
    	140,000

    
    
    Statement of Financial Position of a company for 2074 and 2075
    
    

    Capital & Liabilities	2074	2075
    Share Capital @ Rs.100 per share	1,200,000	1,500,000
    Share Premium	120,000	150,000
    General Reserve	40,000	60,000
    10% Debenture	200,000	100,000
    Account Payable	160,000	240,000
    Bank Overdraft	230,000	160,000
    Retained Earnings	150,000	290,000
    Total	2,100,000	2,500,000
    Assets
    Fixed Assets	1,500,000	2,000,000
    Investment	100,000	200,000
    Inventories	50,000	100,000
    Account Receivable	235,000	90,000
    Cash	200,000	100,000
    Preliminary expenses	15,000	10,000
    Total	2,100,000	2,500,000

    
    
    Required for 2075:
    a. Current Ratio b. Quick Ratio
    c. Debt to Total Capital Ratio d. Inventory Turnover Ratio
    e. Total Assets Turnover Ratio f. Net Profit Ratio
    g. Return on Equity h. Return on Investment
    i. Interest Coverage Ratio j. Account Receivable Turnover Ratio                 (10x1.5=15)
18. An unadjusted trial balance of a company are given below.
    
    
    

    Particulars	Debit (Rs.)	Credit (Rs.)
    Cash Bank Discount Allowed Furniture Purchases Debtors Interest on loan Salary Rent Capital Creditors Discount Received Sales 12% Bank Loan	300,000 350,000 5,000 200,000 200,000 80,000 7,000 60,000 52.000	600,000 45,000 10,000 500,000 100,000
    Total	1,255,000	1,255,000

    
    
    Adjustment:
    a. Closing stock Rs.50,000
    b. Prepaid rent was Rs.4,000
    c. Outstanding interest on bank loan was Rs.5,000
    d. Depreciation on furniture at 25% per annum
    Required:
    i. Adjusted Trail Balance (2)
    ii. Statement of Profit and Loss a/c as per NFRS (4)
    iii. Statement of Financial Position as per NFRS (4)
    iv. Statement of Cash flow Statement as per NFRS (5)
    
    
19. a. Who are the external users of accounting information? Why do they need such
    information? (8)
     b. Explain about the value added statement with its advantages. (7)