Page 247 - AAAXII

Model Test Papers M.235

PART B

ANALYSIS OF FINANCIAL STATEMENTS
18. State the conditions for an investment to qualify as a Cash Equivalent as per AS–3. (1)

19. Under which type of activity is ‘Issue of Equity Shares at Premium’ classified while
preparing Cash Flow Statement? (1)

20. (a) State the major heads under which the following items will be shown in the Balance
Sheet of a company as per Schedule III of Companies Act, 2013:

(i) Provision for warranties.
(ii) Unpaid dividend.
(iii) Calls-in-advance.
(iv) Interest accrued on Investments.
(b) (i) State how price level changes are ignored in financial statements.
(ii) State how financial statements are not free from personal bias. (2 + 2)
21. From the following information, prepare a Comparative Statement of Profit and Loss
of V Ltd. for the year ended 31st March, 2018:

Particulars 31st March, 2018 31st March, 2017

Revenue from Operations ` 20,00,000 ` 10,00,000
Cost of Materials Consumed 75% 60%
(% of Revenue from Operations)
Other Expenses ` 6,00,000 ` 5,50,000
Tax Rate 40% 30%

Or
What is Common-size Balance Sheet? State any three objectives of Common-size
Balance Sheet. (4)

22. (a) Inventory in the beginning of the year ` 60,000; Inventory at the end of the year
` 1,00,000; Inventory Turnover Ratio 8 Times. Selling Price 25% above cost.
Compute the amount of Gross Profit and Revenue from Operations.
(b) The Debt to Equity Ratio of a company is 1 : 1. State giving reasons, which of the
following would improve, reduce or not change the ratio:
(i) Sale of Stock-in-trade at a profit.
(ii) Redemption of Debentures at a premium.
Or

(a) State any two limitations of Ratio Analysis.
(b) Revenue from Operations is ` 4,00,000 and Gross Profit is 25% on Cost. Compute
Gross Profit Ratio. (2 + 2)