Page 192 - AAAXII

M.182 An Aid to Accountancy—CBSE XII

PART B

ANALYSIS OF FINANCIAL STATEMENTS
18. Calculate the resulting Cash Flow and state the nature of Cash Flow from the following:
Paid ` 2,50,000 to acquire shares in Infosys Ltd. and received a dividend of ` 50,000
after acquisition. (1)
19. Payment for purchase of goodwill is classified under which activity in Cash Flow
Statement? (1)
20. (a) How are the following items shown while preparing the Balance Sheet of a Company:
(i) Premium on Redemption of Debentures;
(ii) Share Application Money Pending Allotment?
(b) List two situations when a company has subscribed but not fully paid shares.

(c) How is ‘window dressing’ a limitation of Financial Statements Analysis? (2 + 1 + 1)
21. The Debt-Equity Ratio of a company is 1 : 1. State giving reason, (for any four) which
of the following would improve, reduce or not change the ratio:
(a) Purchase of machinery for cash.
(b) Purchase of Stock-in-Trade on credit.
(c) Sale of furniture at cost.
(d) Sale of Stock-in-Trade at a profit.
(e) Redemption of Debentures at a premium.
Or
From the following information related to Naveen Ltd., calculate (a) Return on
Investment and (b) Total Assets to Debt Ratio.
Information: Fixed Assets ` 75,00,000; Current Assets ` 40,00,000; Current Liabilities
` 27,00,000; 12% Debentures ` 80,00,000 and Net Profit before Interest, Tax and
Dividend ` 14,50,000. (4)
22. From the following information, prepare Comparative Balance Sheet:

Particulars 31st March, 31st March,
2018 (`) 2017 (`)

Share Capital 30,00,000 22,50,000
Reserves and Surplus 3,00,000 4,00,000
Long-term Borrowings 9,00,000 6,00,000
Short-term Borrowings 3,00,000 2,00,000
Fixed Assets: (a) Tangible 30,00,000 22,50,000
(b) Intangible 9,00,000 6,00,000
Inventories 1,50,000 3,00,000
Trade Receivables 1,50,000 1,00,000
Cash and Cash Equivalents 3,00,000 2,00,000