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Model Test Papers M.21

2. Dr. MACHINERY ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 20,00,000 By Bank A/c (Sale)* 2,40,000
To Statement of Profit and Loss (Gain on Sale) 60,000 (` 4,00,000 – ` 2,20,000 + ` 60,000)
To Bank A/c (Purchase) 18,80,000 By Depreciation A/c 7,00,000
(Balancing Figure) By Balance c/d 30,00,000
39,40,000 39,40,000
*Calculation of Sale Value `
Book value on the date of sale 1,80,000
Add: Gain (Profit) on Sale 60,000
Sale Value 2,40,000

3. Dr. NON-CURRENT INVESTMENTS ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 1,50,000 By Bank A/c (Sale) 60,000
To Statement of Profit and Loss (Gain on Sale) 10,000 By Balance c/d 2,00,000
To Bank A/c (Purchase) 1,00,000
(Balancing Figure)
2,60,000 2,60,000

11. (a) Objectives of Common-size Income Statement:
(i) To analyse change in individual items of Income Statement.
(ii) To determine the trend in different items of Revenue and Expenses.
(b) Cash Equivalents are short-term, highly liquid investments that are readily convertible into
known amounts of cash and which are subject to an insignificant risk of change in value.

(c) (i) Proceeds from sale of Fixed Assets.
(ii) Proceeds from sale of Non-current Investment.
(d)
COMMON-SIZE STATEMENT OF PROFIT AND LOSS
for the years ended 31st March, 2019 and 2018
Particulars Absolute Amounts % of Revenue from Operations
31st March, 31st March, 31st March, 31st March,
2019 (`) 2018 (`) 2019 (%) 2018 (%)
I. Revenue from Operations 15,00,000 10,00,000 100 100
II. Other Income 1,80,000 2,00,000 12 20
III. Total Revenue 16,80,000 12,00,000 112 120
IV. Expenses:
Cost of Materials Consumed 9,00,000 5,00,000 60 50
Other Expenses 1,50,000 1,00,000 10 10
Total Expenses 10,50,000 6,00,000 70 60
V. Profit before Tax (III – IV) 6,30,000 6,00,000 42 60
VI. Tax Expense 1,89,000 1,80,000 12.6 18
VII. Profit after Tax (V – VI) 4,41,000 4,20,000 29.4 42