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4.36 Management Accounting (Section B)—ISC XII

6. Following is the Balance Sheet of Bharati Ltd. You are required to calculate Working Capital Turnover Ratio:
BALANCE SHEET as at 31st March, 2019
Particulars Note No. `
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 2,50,000
(b) Reserves and Surplus 1,00,000
2. Current Liabilities
(a) Trade Payables 1,25,000
(b) Short-term Provisions 25,000
Total 5,00,000
II. ASSETS
1. Non-Current Assets
Fixed Assets—Tangible (Net) 2,00,000
2. Current Assets
(a) Short-term Investments 50,000
(b) Inventories 50,000
(c) Trade Receivables 1,25,000
(d) Cash and Bank Balances 75,000
Total 5,00,000

(i) Total Sales during the year ` 10,00,000.
(ii) Sales Return during the year ` 1,00,000.
[Hints: 1. Working Capital = ` 3,00,000 (C.A.) – ` 1,50,000 (C.L.) = ` 1,50,000
2. Revenue from Operations = ` 10,00,000 – ` 1,00,000 = ` 9,00,000.]
7. From the following Balance Sheet of Woodland Ltd. as at 31st March, 2019, calculate (i) Debt to Equity
Ratio; (ii) Proprietary Ratio; and (iii) Debt to Total Assets Ratio:
BALANCE SHEET as at 31st March, 2019
Particulars Note No. `
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 10,00,000
(b) Reserves and Surplus 2,00,000
2. Non-Current Liabilities
(a) Long-term Borrowings 2,60,000
(b) Long-term Provisions 40,000
3. Current Liabilities
Trade Payables 3,00,000
Total 18,00,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets—Tangible 11,00,000
(b) Non-Current Investments 2,00,000
2. Current Assets
(a) Inventories 2,00,000
(b) Trade Receivables 1,00,000
(c) Cash and Bank Balances 2,00,000
Total 18,00,000