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M.314 An Aid to Accountancy—CBSE XII

Or
(a) State any two main objectives of Ratio Analysis.
(b) Capital Employed—` 1,00,000; Non-current Assets—` 80,000; Cost of Revenue from
Operations ` 3,20,000; Gross Profit—20% on Revenue from Operations. Calculate
Working Capital Turnover Ratio. (2 + 2)
23. From the following Balance Sheet of Pioneer Construction Ltd. as at 31st March, 2018,
prepare Cash Flow Statement:
BALANCE SHEET OF PIONEER CONSTRUCTION LTD. as at 31st March 2018
Particulars Note No. 31st March, 31st March,
2018 (`) 2017 (`)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 3,50,000 2,50,000
(b) Reserves and Surplus 1 1,75,000 1,00,000
2. Non-Current Liabilities
Long-term Borrowings—Bank Loan 25,000 50,000
3. Current Liabilities
(a) Trade Payables 26,000 27,500
(b) Short-term Provisions 2 25,000 15,000
Total 6,01,000 4,42,500
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets:
(i) Tangible Assets—Equipment 2,50,000 2,50,000
(ii) Intangible Assets—Patents 47,500 50,000
(b) Non-current Investments 50,000 2,500
2. Current Assets
(a) Inventories—Stock 65,000 25,000
(b) Trade Receivables—Debtors 60,000 40,000
(c) Cash and Cash Equivalents 3 1,28,500 75,000
Total 6,01,000 4,42,500

Notes to Accounts
Particulars 31st March, 31st March,
2018 (`) 2017 (`)
1. Reserves and Surplus
Surplus, i.e., Balance in Statement of Profit and Loss 1,75,000 1,00,000
2. Short-term Provisions
Provision for Tax 25,000 15,000
3. Cash and Cash Equivalents
Cash at Bank 1,15,000 75,000
Cash in Hand 13,500 ...
1,28,500 75,000

Additional Information:
(i) During the year, equipment costing ` 50,000 was purchased.
(ii) Loss on sale of equipment amounted to ` 6,000. ` 9,000 depreciation was charged
on equipment.
(iii) Tax paid during the year was ` 15,000.
(iv) An Interim Dividend of ` 55,000 was paid during the year. The Board of Directors
proposed dividend for the years ended 31st March, 2017 and 2018 @ 10%.
Shareholders, however, did not declare the dividend in their AGM. (6)