Accounting Ratios — Accountancy STD 12 Commerce — Question

Why is Analysis of Financial Statements important to creditors?

Calculate Current Ratio from the following information:

Particulars	₹	Particulars	₹
Total Assets.	5,00,000	Non-Current Liabilities.	1,30,000
Fixed Tangible Assets.	2,50,000	Non-Current Investments	1,50,000
Shareholders' Funds.	3,20,000

Net Profit after Interest but before Tax ₹ 65,000; Shareholder's Funds ₹ 3,00,000; 15% Long-Term Debt ₹ 1,00,000. Calculate Return on Investment.

Calculate Total Assets to Debt Ratio from the following information:

(Forfeiture and Reissue of shares). Complete the following Journal entries:

Wye Ltd. purchased an established business for ​₹ 2,00,000 payable as ​₹ 65,000 by cheque and the balance by issuing 9% Debentures of ​₹ 100 each at a discount of 10%.
Give journal entries in the books of Wye Ltd.

Pass the necessary journal entries for issue of 1,000, 7% Debentures of ₹ 100 each in the following cases:

1. Issued at 5% premium redeemable at a premium of 10%.
2. Issued at a discount of 5% redeemable at par.

State the major head under which the following items will be shown in the Statement of Profit and Loss of a Company:

1. Loss on Issue of Debentures written off.
2. Dividend received.
3. Sale of Services.
4. Contribution to Gratuity fund.
5. Medical Expenses.
6. Bank Charges.
7. Carriage Outwards.
8. Bad-Debts written off.

Y Ltd. purchased machinery for ₹ 90,000. Half the amount was paid in Cash and the remaining half by the issue of 12% Debentures of ₹ 100 each at a discount of 10%. Pass Journal entries.

Under which major head/sub-head will the following items be presented in the Balance Sheet of a company as per Schedule III Part I of the the Companies Act, 2013?

1. Capital Advances
2. Income received in advance
3. Capital work-in-progress
4. Motor vehicles
5. Stores and spare parts
6. 9% Debentures