FRA Test Papers

FRA Test 1

Note: Question no: 1 is compulsory & attempt any three from remaining

Q1)Based on the following information, prepare Balance Sheet of Dhoni Ltd. As on 31st March, 2006. Explain your working and assumptions:   (15)

Current Ratio

2.5

Liquidity Ratio

1.5

Net Working Capital

Rs 8,00,000

Stock turnover Ratio

5

Turnover Ratio to Net Fixed Assets  (COGS/FA)

2

Ratio of Gross Profit to sales

20%

Average debt collection period

2.4 Months

Fixed Assets to Net worth

0.80

Long term Debt to Capital and Reserve

7/25

 

Or

Q1) What are Accounting Ratios ? How can the accounting ratios be classified ? Enumerate any Two Ratios covered by each classification.               (15)

 

Q2) Show how will you deal with the following adjustments at the time of preparation of final accounts of a Ltd. Company:          (15)

  1. I-Tax assessment for the year has been completed for a gross demand of Rs. 82,000. Trial Balance shows:

  2. Share Capital of Rs. 3,00,000 is represented by 1,000, 9%. Cumulative preference shares of Rs. 100 each fully paid up and balance by Equity- No effect has been given to Board Resolution forfeiting 400 Equity shares of Rs. non- payment of final call of Rs. 5 per shares

  • 5,000 of the equity shares were issued for consideration other than cash as fully paid items from Trial Balance- Share Capital Rs. 3,00,000 calls in arrears Rs. 2,000

  • Preference dividends are in arrears for 3 years (show schedule of share capital)

Or

Q2) Explain the following Ratios:          (15)

  1. Debt- Equity Ratio.

  2. Return on Capital Employed

  3. Capital Gearing Ratio.

 

Q3) The following is the trial balance of Z Ltd. As on 31st March 2006                 (15)

Particulars

Rs. (Lakhs)

Particulars

Rs. (Lakhs)

Land and Building

45.00

Equity Share Capital

25.00

Plant and Machinery

38.00

10% Debentures

20.00

Debtors

45.00

General Reserve

16.00

Stock

24.00

Profit and Loss A/c

12.00

Bank Balance

10.00

Securities Premium

5.00

Purchases

260.00

Sales

350.00

Factory Expenses

30.00

Creditors

34.00

Administration Expenses

10.00

Provision for Depreciation

8.00

Selling Expenses

4.00

Suspense A/c

3.00

Debenture Interest

2.00

Interim Dividend

5.00

473.00

473.00

Additional Information:

(a)Proposed final dividend @ 20%

(b)Depreciation is to be provided on Plant and Machinery at 10% on cost

(c)Suspense account represents cash received for the sales of Machinery on 1st April, 2005. The cost of machinery was Rs. 5,00,000 and the accumulated depreciation thereon being Rs. 4,00,000

You are required to prepare Profit and Loss A/c and Balance Sheet of Z Ltd., as on 31.3.2006.

Or

Q3) What is Fund Flow Statement ? State uses of fund flow statement in India Scenario.  Also state how it differs from cash flow statement.        (15)

 

Q4) From the following information calculate Current Ratio, Liquidity Ratio, Creditor’s Turnover Ratio and Average Credit Sales of  “A” Ltd & “B”  Ltd:          (15)

Particulars

“A” Ltd Rs.

“B” Ltd Rs.

Stock

8,00,000

1,00,000

Debtors

1,70,000

1,40,000

Cash

30,000

60,000

Trade Creditors

2,80,000

1,50,000

Bills Payable

20,000

10,000

Bank Overdraft

40,000

30,000

Creditors for Expenses

60,000

10,000

Total Purchases

9,30,000

6,60,000

Cash Purchases

30,000

20,000

Credit to Debtors

3.5 Months

4 Months

 

Or

Q4) Explain provision of Schedule VI of the Companies Act 1956 as regards to    (15)

  1. Fixed Asset.

  2. Reserve and Surplus.

  3. Secured Loan.

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