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M.8 An Aid to Accountancy—CBSE XII
(c) What is the accounting treatment of ‘Provision for Doubtful Debts’ while computing
‘Trade Receivables Turnover Ratio’? (4)

21. (a) Calculate values of Opening and Closing Inventories from the following information:
Revenue from Operations: ` 6,00,000; Gross Profit Ratio = 25%. Inventory Turnover
Ratio = 5 Times. Closing Inventory is ` 12,000 more than the Opening Inventory.
(b) Current Ratio of a company is 2 : 1. State with reason, which of the following would

improve, reduce or not change the ratio:
(i) Repayment of a Current Liability.
(ii) Purchasing goods on credit.
(iii) Sale of motor vehicle at a profit of 10%.

(iv) Sale of goods at a profit of 10%. (4)
22. (a) Which item is assumed to be 100 in case of Common-size Statement of Profit
and Loss?

(b) Prepare Common-size Balance Sheet from the following information:

31st March, 31st March,
2018 (`) 2017 (`)
Shareholders’ Funds 9,00,000 6,00,000
Non-current Liabilities 3,00,000 3,00,000
Current Liabilities 3,00,000 1,00,000
Non-current Assets 10,50,000 7,00,000
Current Assets 4,50,000 3,00,000

Or
(a) State any two tools of Financial Analysis.

(b) From the following Statement of Profit and Loss of the Sakhi Ltd. for the year ended
31st March, 2019, prepare Comparative Statement of Profit and Loss:

STATEMENT OF PROFIT AND LOSS
for the year ended 31st March, 2019
Particulars 31st March, 31st March,
2018 (`) 2019 (`)
I. Revenue from Operations 25,00,000 40,00,000
II. Expenses:
Employee Benefit Expenses (5% of Revenue from Operations) ... ...
Other Expenses 5,90,000 6,80,000
III. Rate of Tax 35% ... ...
(1 + 3)