1. Kumar and Jyothi have a partnership business. The position of their firm as on March 31 2016 and 2015 is given in the financial statements given below. You are required to prepare comparative statements and provide comments

Summarized Balance Sheet

Liabilities

2016

2015

Assets

2016

2015

Capital Accounts

71,750

59,500

Fixed Assets

52,500

43,750

Bank Loans

14,000

10,500

Investments

3,500

1,750

Sundry Creditors

38,500

35,000

Stock-in-trade

21,000

17,500

Sundry Debtors

31,500

26,250

Loans and Advances

14,000

14,000

Cash and Bank

1,750

1,750

1,24,250

1,05,000

1,24,250

1,05,000

Summarized Income Statement

Particulars

2016

2015

Net Sales

42,000

36,500

Less: Cost of Sales

31,500

29,750

Gross Margin

10,500

8,750

Operating Expenses

8,750

7,000

Net Profit Before Tax

1,750

1,750

2. common size financial statement based on the details provided

Balance Sheet as at 31 March 2016

Liabilities

Rs

Assets

Rs

Sundry Creditors

10,500

Cash

6,750

Outstanding expenses

19,500

Debtors

27,750

Loans

56,250

Prepaid Expenses

55,000

Capital

1,64,250

Stock

25,000

Reserves

25,000

Other Current Assets

2,500

Fixed Assets

1,58,750

2,75,750

2,75,750

Income Statement for the year ended 31 March 2016

Expenses

Rs

Income

Rs

To Cost of Goods Sold

1,77,750

By Net Sales

3,17,250

To Selling Overheads

90,000

By Other Income

3,000

To Admin and Gen Expenses

23,000

To Tax

8,500

To Loss on Sale of Investments

12,000

To Net Income

9,000

3,20,250

3,20,250

3. Sudha and Vijay are partners in a business firm. Their position as on 31 December 2010, 2011, 2012 is given here. You are required to work out the trend percentage and give your interpretations on the same.

Summarized Balance Sheet

Liabilities

2012

2011

2010

Assets

2012

2011

2010

Partners' Capital

4,00,000

3,40,000

3,00,000

Fixed Assets

4,00,000

3,60,000

2,80,000

General Reserve

1,00,000

1,00,000

1,00,000

Current Assets

Secured Loans

60,000

60,000

50,000

Stock

1,60,000

1,50,000

1,35,000

Unsecured Loans

1,60,000

1,80,000

1,40,000

Debtors

2,00,000

1,60,000

1,40,000

Sundry Creditors

1,60,000

90,000

45,000

Loans and Advances

1,00,000

80,000

60,000

Cash and Bank Balances

20,000

20,000

20,000

8,80,000

7,70,000

6,35,000

8,80,000

7,70,000

6,35,000

Summarized Income Statement

Particulars

2012

2011

2010

Sales

40,00,000

36,00,000

30,00,000

Less: Cost of Sales

28,00,000

24,00,000

20,00,000

Gross Profit

12,00,000

12,00,000

10,00,000

Less: Expenses

8,00,000

8,00,000

7,00,000

Net Profit

4,00,000

4,00,000

3,00,000

4. From the following trading and profit and loss account, compute the cash from operations

Trading and Profit & Loss Account for the year ended 30 June 2011

Particulars

Amount

Particulars

Amount

To Salaries

10,000

By Gross Profit

50,000

To Rent

3,000

By Profit on sale of land

9,000

To Depreciation

5,000

By Income Tax Refund

7,000

To Discount

1,000

To Loss on Sale of Plant

2,000

To Goodwill written off

8,000

To Proposed Dividends

10,000

To Provision for Tax

10,000

To Net Profit

17,000

TOTAL

66,000

TOTAL

66,000

5. Following are the condensed balance sheets of Sophia Ltd

Particulars

2012

2011

Equity Share Capital

4,00,000

4,00,000

Reserves and Surplus

2,82,000

3,46,000

Depreciation Reserve

20,000

28,000

Secured Loans

40,000

60,000

Creditors for Goods

1,29,000

1,06,000

Outstanding Expenses

17,000

3,000

8,88,000

9,43,000

Plant and Equipment (cost)

5,70,000

6,00,000

Inventories

1,96,000

2,26,000

Debtors

79,000

57,000

Cash at Bank

43,000

60,000

8,88,000

9,43,000

Work out the figures of cash from operations

6. Explain the following terms:

(a) Accounting Standards, (b) Corporate Governance

7. What are directors' responsibility statements?

8. What are the suggested items included in the corporate governance report?

9. Transactions of Omni Cab Company for the year ended on 31 December 2012 include the following:

Amount (Rs.)

Borrowed from a bank and purchased land

4,00,000

Sold investment securities

7,00,000

Paid dividends

3,00,000

Issued 500 equity shares

3,50,000

Purchased machinery and equipment

1,75,000

Bank loan paid

6,50,000

Paid accounts receivable outstanding

1,00,000

Accounts payable increased

1,90,000

Calculate the company's net cash flow used in investing and financing activities.

10. Shah Brothers' transactions for the year ended 31 December 2012 included the following:

- Cash Sales, Rs. 33,30,000

- Taxes and other compulsory payments, Rs. 70,000

- Sold investment securities, Rs. 9,00,000

- Cash borrowed from a bank, Rs. 4,30,000

- Cash paid for inventory, Rs. 8,00,000

- Issued 10,000 equity shares for land with a market value of, Rs. 6,50,000

- Purchased equipment, Rs. 1,00,000

- Purchased land, Rs. 5,00,000

- Paid Rs. 2,50,000 towards a bank loan

- Sold 600 of its 12% debenture bonds due in the year 2014 for Rs. 7,20,000

Calculate Shah Brothers' net cash inflows for (a) operating, (b) investing, and (c) financing activities. Explain the transactions that are not reported as part of the operating, investing, or financing activities of Shah Brothers, but are rather reported separately in the statement of cash flows.