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Model Test Papers M.405

Or
(a) Shareholders’ Funds/Equity/Proprietors’ Funds.
(b) Yes, if Non-operating Income exceed Non-operating Expenses.
(c) Operating Profit Ratio = 100 – Operating Ratio
= 100 – 70 = 30%.
(d) Improve. Reason: Declaration of Dividend reduces the balance in Surplus, i.e.,
Balance in Statement of Profit and Loss and thus Shareholders’ Funds. In effect,
numerator (Debt) does not change but denominator (Shareholders’ Funds) reduces.
Therefore, Debt to Equity Ratio will improve.
22. COMPARATIVE STATEMENT OF PROFIT AND LOSS for the years ended 31st March, 2017 and 2018
A Note B C D = C – B E = D/B × 100
Particulars No. 31st March, 31st March, Absolute Percentage
2017 (`) 2018 (`) Change (`) Change (%)
I. Revenue from Operations 6,00,000 9,00,000 3,00,000 50
II. Other Income 1,20,000 1,08,000 (12,000) (10)
III. Total Revenue (I + II) 7,20,000 10,08,000 2,88,000 40
IV. Expenses:
Cost of Materials Consumed 3,00,000 5,40,000 2,40,000 80
Other Expenses (Direct) 60,000 90,000 30,000 50
Total Expenses 3,60,000 6,30,000 2,70,000 75
V. Profit before Tax (III – IV) 3,60,000 3,78,000 18,000 5
VI. Less: Tax Expenses 1,44,000 1,51,200 7,200 5
VII. Profit after Tax (V – VI) 2,16,000 2,26,800 10,800 5
Or
Radha Ltd.
COMPARATIVE BALANCE SHEET as at 31st March, 2017 and 2018
Particulars Note 31st March, 31st March, Absolute Change Percentage Change
No. 2017 2018 (Increase/Decrease) (Increase/Decrease)
` ` ` %
(A) (B) (C = B – A) ( D = C ¥100 )
A
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 10,00,000 15,00,000 5,00,000 50.00
(b) Reserves and Surplus 10,00,000 10,00,000 ... ...
2. Non-Current Liabilities
Long-term Borrowings 2,00,000 8,00,000 6,00,000 300.00
3. Current Liabilities
Trade Payables 3,00,000 5,00,000 2,00,000 66.67
Total 25,00,000 38,00,000 13,00,000 52.00
II. ASSETS
1. Non-Current Assets
Fixed Assets:
(i) Tangible Assets 15,00,000 25,00,000 10,00,000 66.67
(ii) Intangible Assets 5,00,000 5,00,000 ... ...
2. Current Assets
(a) Trade Receivables 3,50,000 6,00,000 2,50,000 71.43
(b) Cash and Cash Equivalents 1,50,000 2,00,000 50,000 33.33

Total 25,00,000 38,00,000 13,00,000 52.00