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Business Ratio and Depreciation Analysis

The document contains a continuous evaluation assignment divided into four sections with numerical questions related to ratios, final accounts, depreciation accounts, and conceptual questions. Section A contains 6 marks of ratio questions. Section B contains 4 marks of final accounts questions. Section C contains 6 marks of depreciation account questions for two different companies. Section D contains 4 marks of conceptual questions about depreciation methods, ratio analysis for stakeholders, profit types, and the definition of accounting.

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Lavish 15
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22 views8 pages

Business Ratio and Depreciation Analysis

The document contains a continuous evaluation assignment divided into four sections with numerical questions related to ratios, final accounts, depreciation accounts, and conceptual questions. Section A contains 6 marks of ratio questions. Section B contains 4 marks of final accounts questions. Section C contains 6 marks of depreciation account questions for two different companies. Section D contains 4 marks of conceptual questions about depreciation methods, ratio analysis for stakeholders, profit types, and the definition of accounting.

Uploaded by

Lavish 15
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Continuous Evaluation Assignment for 20 Marks

Section A- 6 Marks
Section A consists of numerical questions related to ratio. Please solve the same and write your
report about the situation of business as per the calculated ratio.
Question: 1

Question: 2
Question: 3

Question: 4
Question: 5

Question: 6
Question: 7

Question: 8
Section B- 4 Marks
Section B consists of numerical questions related to Final accounts. Please solve the same and
write your report about the situation of business as per the reported trading account, profit & loss
account and Balance sheet.
Question: 9
Question: 10
Question: 11
Section C- 6 Marks
Section C consists of numerical questions related to Depreciation accounts. Please solve the
same.
Question 12: Das and Bros. purchased machinery for Rs. 480000 on 1st April, 2021 and incurred
Rs. 20000 for its installation. On 1st October in the same year, they purchased another machinery
for Rs. 200000. However, On 1st October 2022 the machinery purchased on 01/04/2021 having
become useless was sold for Rs.314000 and on that day a new machinery was purchased for Rs.
400000. In the next year, a new machine costing 300000 is also purchased on 1 July 2023 due to
increase production of product. Depreciation was provided on 31st March each year @ 10 percent
p.a on written Down Value. You are required to prepare a machinery account and depreciation
account for 2021-22, 2022-23 and 2023-24.
Question 13: Cheesecake & Co. purchased a large baking oven (machinery) for Rs. 600000 on 1st
Jan, 2020 and incurred Rs. 50000 for its installation. On 1 July 2020 purchased Freezer
(machinery) for Rs. 4,00,000. However, On 1 September 2021 the oven purchased on 01/01/2020
was sold for Rs. 440000 and on that day a new oven was purchased for Rs. 8,00,000. In the next
year, a Freezer (machine) costing 300000 is also purchased on 1 March 2022 due to increase
production of product. Depreciation was provided on 31 Dec each year @ 10 percent p.a on written
Down Value. You are required to prepare a machinery account and depreciation account for 2020,
2021 and 2022.

Section D- 4 Marks
Question 14: What do you mean by Depreciation and also provide five points of differences
between SLM and WDV method of depreciation.
Question 15: There are various stakeholders of business; prepare a chart showing which ratio is
important for Owner, Investors and Supplier of raw material and why.
Question 16: What is the difference between net profit and net operating profit?
Question 17: What is accounting?

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