2022
FINANCIAL REPORTING AND
FINANCIAL STATEMENT ANALYSIS — HONOURS
Paper : DSE-6.1A
Full Marks : 80
The figures in the margin indicate full marks
Candidates are required to give their answers in their own words as
far as practicable.
Group - A
1. Specify three purposes of conceptual framework for preparation and presentation of financial statements of
a company, 5
or,
Explain 'understandability' and 'comparability' qualitative characteristics of financial statements. 5
2. From the following information, calculate fund from operation of Exe Ltd.
Profit before tax (PBT) 2,40.000; Bad debt written off 12,000; Office expenses charged 37,000;
Depreciation charged 32,000; Provision for tax debited to Statement of Profit & Loss 44,000; Dividend
paid 20,000; Profit on sale of asset credited 15,000 and Goodwill amortised 25,000.
5
3. From the fOllowing calculate ROCE and Return on Net Worth : Share Capital General
Reserve Balance of Statement of Profit & Loss
5,00,000; 15% long term Loan
PBT Ignore tax. 5
or,
Name the ratio that you would calculate in each of the following cases to indicate
(a) The ability of the company to meet its current obligations.
(b) The rapidity with which accounts receivables are collected.
(c) The ability to meet interest (and other fixed charges) obligations.
(d) The profitability of equity funds invested in the firm
(e) The dividend paid in relation to earnings per share. 5
Please Turn Over
Group - B
4. Frem the ing relating to Situplex Ltd., calculate Basic EPS and D ilut ed EPS as per
Ind
Net profit caller tax) for the current year
No. Of outstanding equity shares shares ol' each
No. of 1000 Fully Corncrtihle Debentures 50,000 debentures ol' 100 each
12%, Cunnilattve Preference shares 50.000 shares of 100 each
Corporate tax rate 300
Each fully Conværtible Debenture will be converted into 8 equity shares or 10 each.
5. From the following information prepare a •Common swe Income Statement' for the year ended 31st March
202' •
Office. Selling and Distribution Expenses 1.20,ooo
Total Cost of Sales 75% of Net Sales
Net profit before tax 2.40,ooo
Other income 40,000 10
or,
Find the sales of the base period and other missing data from the figures of S Ltd. 10
Year 2017 2018 2019 2020
2021
Sales in '000) 1980 2805 3140 Trend (0 0) 110 130 3798
Group - C
6. The statement of assets and liabilities of H Ltd. and its subsidiary S Ltd. as on 31.03.2022 stored as follows
:
Equity and Liabilities H Ltd (Z) S Ltd (Z)
Equity share capital (Z 10)
General Reserve
Balance of Profit & Loss (Cr.)
Trade Payables (Creditors)
340,000
Reporting
Assets
I and Building
Plant Machinery
1mx•stnncnl tn S I Id
1m entorics280.000
I radc Recen (Delmlot•s)
Cash and Cash Equivalents20,000
The intonnation is also available :
(a) H Ltd. acquired 24.000 equity shares of S Ltd. on 01.()7.2021 at a cost of? and immediately
acquisition H Ltd. received dividend an equity shares (a 20% for the year 2020-21 . H Ltd. credited its
share of dividend to Profit & Loss A c.
On 01 04.2021, the balance of General Reserve was and the balance of Profit & Loss
[Link].
(c) Debtors of H Ltd. include 40,000 for goods sold to S Ltd. at cost plus 25%, half of the goods are still in
stock.
Prepare Consolidated Balance Sheet of H Ltd. with its subsidiary S Ltd. as on 31.0.3.2022
7. Balance Sheet of Pixel Ltd. as at 31.032021 and 31.03,2022 were as follows
Particulars 31.03.2021 31.03.2022
I. Equity and Liabilities
l . Shareholders' Fund 350,000
(a) Share Capital (Equity Shares of 10 each)
(b) Reserves and Surplus (Balance in Statement of
Profit & Loss) 1 5 ,[Link]
3. Non-Current Liabilities
(a) Long term borrowing Term Loan s,[Link]
4. Current Liabilities
(a) Trade payables
(b) Provision for Tax
S9,S0.000
Il. Assets 45,001000
l. Non-C urrent Assets
Property, Plant and Equipment
2. Current Assets 23.00,ooo
(a) Inventories 230.000
(b) Trade Receivables
(c) Cash and Cash equivalents
Please lurn Over
Dividend and repayment of
illtcrcsl on term loan for the year 2021-22
Depreciation plant and equipment during the
Prepare a Cash Flow Slaletnellt as per AS-A for the ycar ended 15
Prepare a Fund Statenlent of Y Ltd. from the following statement Of assets and liabilities after taking into
consideration the additional inlormation.
Particulars 31.03.2021 31.03.2022
l. Equity and Liabilities
Share capital 10)
Capital Reserve 40,000
Balance in statement of P/L
Debentures
Sundry creditors480,000 5-36,000
Provisvon for tax 480,000
Il. Assets
Property, plant and Equipment
Trade investment
Current Assets including investories
Additional Information .
(a) Sold one machine for the cost of the machine was and the depreciation
provided for it amounted to
(b) Provided 3,80,000 on depreciation.
(c) Redeemed 30% debentures @ 103.
(d) Sold trade investment at profit and the profit was credited to capital reserve.
(e) Decided to value the stock at cost, whereas the previous practice was to value the
less 10%. The stock according to books on 31,03.2021 was 2, 16,000, stock
3,00,()00 was correctly valued at cost.15
8. From the following information, prepare a Statement or Proprietors' Fund with as many details as possible
.
GP ratio = 25%
Current ratio = 1.5
Stock to Current Liabilities = 1/2
Stock turnover ratio (based on cost) = 73 days
Fixed assets to Net worth 0.80
Debtors turnover — 4 times Gross profit — 3,00,000
Reserve to Share Capital = 0.25
Non-trade investment 70,000
There is no borrowings. 15
or,
With the following ratios and further information given below, prepare a Trading Account, Proft & Loss
Account for the year ended 31.03.2022 and a Balance Sheet of Mr. Kapoor as on that date.
Gross profit ratio = 33 — %
Net profit ratio = 25% of turnover
Stock turnover ratio 10 times
1
Current liabilities/External liabilities — 4
5
Fixed Assets/Closing capital = —
4
Closing capital/Extemal liabilities = —
2
5
Fixed Assets/Current Assets — 7
Fixed Assets =
Closing stock = 4,40,000 which is 10%
more than the opening stock. 15