Page 155 - MA12

Model Test Papers M.61

Shareholders’ Funds/Equity ` 9,00,000
(ii) Proprietary Ratio = = = 0.5 : 1.
Total Assets ` 18,00,000
Notes:
1. Shareholders’ Funds = Share Capital + Reserves and Surplus
= ` 8,00,000 + ` 1,00,000 = ` 9,00,000.
2. Total Assets = Total Current Assets + Non-current Assets
= ` 6,00,000 + ` 12,00,000 = ` 18,00,000.
(iii) Working Capital Turnover Ratio= Revenue from Operations = ` 10,00,000 = 3.33 Times.
Working Capital ` 3,00,000
Note: Working Capital = Current Assets – Current Liabilities
= ` 6,00,000 – ` 3,00,000 = ` 3,00,000.
(b) Trade Receivables Turnover Ratio = Credit Revenue from Operations
Average Trade Receivables

` 30,000
= ` 30,000 = 1 Time.
Working Notes:
1. Calculation of Credit Revenue from Operations:
Let Cash Revenue from Operation = X, credit Revenue from Operation will be 25% of X or X/4.
Total Revenue from Operations = Cash Revenue from Operations + Credit Revenue from Operations
` 1,50,000 = X + X/4
5X = ` 6,00,000
X = ` 6,00,000/5 = ` 1,20,000 (Cash Revenue from Operations)
Credit Revenue from Operations = ` 1,20,000 × 1/4 = ` 30,000.
2. Calculation of Average Trade Receivables:
Opening Trade Receivables = ` 40,000 – ` 20,000 = ` 20,000
Opening Trade Receivables + Closing Trade Receivables
Average Trade Receivables =
2
` 20,000 + ` 40,000
= = ` 30,000.
2
11.
(a) COMPARATIVE BALANCE SHEET OF FABLE LTD. as at 31st March, 2020 and 2019
Particulars Note No. 31st March, 31st March, Absolute Percentage
2020 (`) 2019 (`) Change (`) Change (%)

I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 50,00,000 50,00,000 ... ...
(b) Reserves and Surplus 12,00,000 10,00,000 2,00,000 20.00
2. Non-Current Liabilities
(a) Long-term Borrowings 30,00,000 30,00,000 ... ...
3. Current Liabilities 11,00,000 10,00,000 1,00,000 10.00
Total 1,03,00,000 1,00,00,000 3,00,000 3.00