Page 372 - MA-12

Model Test Papers M.63

Working Notes:
1. Debt = Long-term Borrowings + Long-term Provisions
= ` 9,00,000 + ` 3,00,000 = ` 12,00,000.
2. Total Assets = Fixed Assets (Gross) – Accumulated Depreciation + Non-current Investments + Current Assets
+ Long-term Loans and Advances
= ` 18,00,000 – ` 3,00,000 + ` 30,000 + ` 7,50,000 + ` 1,20,000
= ` 24,00,000.
Net Profit after Tax and Preference Dividend
(c) Earning Per Share =
Number of Equity Shares
` 1,00,000 - ` 20,000 ` 80,000
= = = ` 4 per share.
20,000 20,000
Note: Dividend on 10% Preference Shares = 10% of ` 2,00,000 = ` 20,000.
11. (a) Common-size Balance Sheet is a vertical analysis of Balance Sheet in which total assets
is taken as 100 and all other figures of Assets, Equity and Liabilities are expressed as
percentage of total assets figure.
Net Credit Purchases ` 3,60,000
(b) Trade Payables Turnover Ratio = = = 4 Times.
Average Trade Payables ` 90,000
Net Credit Purchases = Total Purchases – Cash Purchases – Purchases Return
= ` 4,20,000 – ` 40,000 – ` 20,000 = ` 3,60,000
Average Trade Payables
Opening Creditors + Opening Bills Payable + Closing Creditors + Closing Bills Payable
=
2
` 40,000 + ` 50,000 + ` 30,000 + ` 60,000 ` 1,80,000
= = = ` 90,000.
2 2

(c) COMPARATIVE STATEMENT OF PROFIT AND LOSS OF SANDALWOOD PRODUCTS LTD.
for the years ended 31st March, 2019 and 2018
Particulars Note No. 31st March, 31st March, Absolute Percentage
2019 (`) 2018 (`) Change (`) Change (%)
I. Revenue from Operations 14,00,000 11,00,000 3,00,000 27.27
II. Add: Other Incomes 4,00,000 3,00,000 1,00,000 33.33
III. Total Revenue (I + II) 18,00,000 14,00,000 4,00,000 28.57
IV. Less: Expenses 11,00,000 12,00,000 (1,00,000) (8.33)
V. Profit before Tax (III – IV) 7,00,000 2,00,000 5,00,000 250.00
VI. Less: Tax @ 50% 3,50,000 1,00,000 2,50,000 250.00
VII. Profit after Tax (V – VI) 3,50,000 1,00,000 2,50,000 250.00

Net Profit Ratio = Net Profit after Tax ¥100
Revenue from Operations
= ` 3,50,000 ¥100 = 25%.
` 14,00,000