Page 315 - MA-12

M.6 Management Accounting (Section B)—ISC XII

Section B
(20 Marks)
(Answer any two questions)
9. (a) While computing Trade Receivables Turnover Ratio, is ‘Provision for Doubtful Debts’
deducted from the total amount of Trade Receivables? Give reason.
(b) (i) Gross Profit Ratio of Moon Ltd. is 25%. State giving reason whether the
ratio will increase or decrease or not change on purchase of goods for ` 30,000
against cheque.
(ii) Gross Profit Ratio of Star Ltd. is 20%. State giving reason, whether the ratio will
increase or decrease or not change on sale of goods for ` 30,000 on credit.
(c) On the basis of the following information, calculate:
(i) Operating Ratio;
(ii) Inventory Turnover Ratio;
(iii) Proprietary Ratio.

Information:
Cash Revenue from Operations ` 10,00,000
Credit Revenue from Operations 120% of Cash Revenue from Operations
Operating Expenses 10% of Total Revenue from Operations
Gross Profit Ratio 40%
Opening Inventory ` 1,50,000
Closing Inventory ` 20,000 more than Opening Inventory
Current Assets ` 3,00,000
Current Liabilities ` 2,00,000
Share Capital ` 6,00,000
Fixed Assets ` 5,00,000
[2 + 2 + 6 = 10]
10. Bhushan Steel Ltd. gives you the following information, you are required to prepare
Cash Flow Statement as per AS-3 (Revised) for the year ended 31st March, 2019:
BALANCE SHEET OF BHUSHAN STEEL LTD. as at 31st March 2019
Particulars Note No. 31st March, 31st March,
2019 (`) 2018 (`)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 20,00,000 20,00,000
(b) Reserves and Surplus 1 9,00,000 5,00,000
2. Non-Current Liabilities
Long-term Borrowings 2 10,00,000 10,00,000
3. Current Liabilities
(a) Trade Payables 15,50,000 6,00,000
(b) Other Current Liabilities 3 1,00,000 70,000
Total 55,50,000 41,70,000