Analysis of Financial Statements — Accountancy STD 12 Commerce — Question

From the following particulars, calculate cash flows form investing activities

Interest received on debentures held as investment ₹ 60,000 Dividend received on shares held as investment ₹ 10,000.
A plot of land had been purchased for investment purposes and was let out for commercial use and rent received ₹ 30,000.

Calculate Closing Trade Receivables from the following information:

Cost of Revenue from Operations	:	₹ 16,00,000
Gross Profit on Cost	:	25%
Cash Revenue from Operations	:	25% of Credit Revenue from Operations
Trade Receivables Turnover Ratio	:	5 Times

Closing Trade Receivables were 1.5 times than that in the beginning.

Compute Cash Flow from Operating Activities from the following:
An asset costing ₹ 40,000 having book value of ₹ 28,000 was sold for ₹ 36,000.

Describe the meaning of ‘Debenture Issued as Collateral Securities’. What accounting treatment is given to the issue of debentures in the books of accounts?

1. The quick ratio of a company is 1.5 : 1. State with reason which of the following transactions would (i) increase; (ii) decrease or (iii) not change the ratio:

1. Paid rent ₹ 3,000 in advance.
2. Trade receivables included a debtor Shri Ashok who paid his entire amount due ₹ 9,700.

2. From the following information compute ‘Proprietary Ratio’:

	₹
Long Term Borrowings	2,00,000
Long Term Provisions	1,00,000
Current Liabilities	50,000
Non-Current Assets	3,60,000
Current Assets	90,000

From the following particulars, calculate Cash from Investing Activities:

Additional Information:
During the year:

1. Depreciation charged on Plant and Machinery ₹ 80,000.
2. A machine having a book value of ₹ 1,40,000 was sold for ₹ 1,50,000.
3. Patents having a book value of ₹ 60,000 were sold for ₹ 45,000.

Prepare a Comparative Income Statement from the following information:

State any two items that are included in the following major heads under which liabilities of a company are shown:

1. Reserves and Surplus.
2. Long-term Borrowings.
3. Short-term Borrowings.
4. Other Current Liabilities.

Financial statements are prepared following the consistent accounting concepts, principles, procedures and also the legal environment in which the business organizations operate. These statements are the sources of information on the basis of which conclusions are drawn about the profitability and financial position of a company so that their users can easily understand and use them in their economic decisions in a meaningful way.
From the above statement identify any two values that a company should observe while preparing its financial statements. Also state under which major headings and sub-headings the following items will be presented in the balance sheet of a company as per Schedule III of the Companies Act 2013. General Reserves, short term loans and advances, Capital work in progress and design.

Calculate Operating Profit Ratio from the following: