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Model Test Papers M.99
Or
COMPARATIVE STATEMENT OF PROFIT AND LOSS
for the years ended 31st March, 2017 and 2018
Particulars 31st March, 31st March, Absolute Percentage
2017 2018 Change (Increase/ Change (Increase/
` ` Decrease (`) Decrease) (%)
I. Revenue from Operations 50,00,000 70,00,000 20,00,000 40.00
II. Expenses
(a) Employees Benefit Expenses 20,00,000 35,00,000 15,00,000 75.00
(b) Depreciation 5,00,000 8,00,000 3,00,000 60.00
(c) Other Expenses 12,00,000 16,00,000 4,00,000 33.33
Total Expenses 37,00,000 59,00,000 22,00,000 59.46
III. Profit before Tax (I – II) 13,00,000 11,00,000 (2,00,000) (15.38)
IV. Less: Tax @ 40% 5,20,000 4,40,000 (80,000) (15.38)
V. Profit after Tax (III – IV) 7,80,000 6,60,000 (1,20,000) (15.38)

Current Assets ` 16,00,000
22. (i) Current Ratio = = = 2 : 1.
Current Liabilities ` 8,00,000
Notes:
1. Current Assets = Trade Receivables + Inventory + Marketable Securities + Cash and Bank
Balances + Prepaid Expenses
= ` 8,00,000 + ` 3,20,000 + ` 1,60,000 + ` 2,40,000 + ` 80,000 = ` 16,00,000.
2. Current Liabilities = Trade Payables (i.e., Bills Payable + Sundry Creditors) + Expenses Payables
= ` 1,60,000 + ` 3,20,000 + ` 3,20,000 = ` 8,00,000.
Quick Assets ` 12,00,000
(ii) Quick Ratio = = = 1.5 : 1.
Current Liabilities ` 8,00,000
Note: Quick Assets = Current Assets – Inventory – Prepaid Expenses
= ` 16,00,000 – ` 3,20,000 – ` 80,000 = ` 12,00,000.
23. Kinder Joy Ltd.
CASH FLOW STATEMENT for the year ended 31st March, 2018
Particulars ` `
A. Cash Flow from Operating Activities
Net Profit before Tax and Extraordinary Items (WN 1) 3,75,000
Adjustment for Non-cash and Non-operating Items:
Depreciation (WN 4) 2,00,000
Loss on Sale of Machinery (WN 3) 30,000
Goodwill Amortised 1,50,000
Interest on Debentures 1,25,000 5,05,000
Operating Profit before Working Capital Changes 8,80,000
Change in Current Assets and Current Liabilities:
Increase in Inventories (1,25,000)
Increase in Trade Receivables (5,00,000)
Increase in Trade Payables 1,00,000 (5,25,000)
Cash Flow from Operating Activities before tax 3,55,000
Less: Tax paid 50,000
Cash Flow from Operating Activities 3,05,000