ABC Pharma is a manufacturer and seller of generic pharmaceutical medicines. The Balance Sheet and Profit and Loss Statement of the firm for the financial year 2019-20 is provided in the exhibits. Certain important transactions and information is provided pertaining to the FY 20-21 (the accounting period in this case) is provided to you. You are required to answer the following questions on the basis of information provided in this section. You may make suitable assumptions if you feel the need. Q1) Based on the following information show the impact on the Balance Sheet as on 31- march-2021 and the Profit and Loss Statement for the year 20-21. [6 marks] a. The company received orders for 5000 cartons. The selling price was Rs. 0.02 crores per carton (1 lakh=0.01 crores). b. ABC was able to dispatch only 4900 cartons in the financial year. Distributors reported that 100 cartons were damaged on arrival. The remaining 100 cartons would be dispatched in April 2021. c. Marketing and sales teams required 100 cartons as samples for doctors. d. 50 cartons were returned by distributors as they crossed the expiry date. Q2) Answer this question using information given in Q1, and Note 1 given in exhibit which gives the inventory of finished goods. The company also informed that their production for the FY 20-21 was 5200 cartons. The plant stores received these cartons at uniform price of 0.012 crores (1.2 lakhs per carton). Calculate the Cost of goods sold in the Profit and Loss statement (FY 20-21) and ending inventory in balance sheet as on 31-Mar-21. [6 marks] Q3) Based on the following information show the impact on the Balance Sheet as on 31- march-2021 and the Profit and Loss Account for the year 20-21. [8 marks] a. The company purchased a new machine for Rs. 2 crores. This was purchased, installed and started operations on 1st April 2020. To finance this transaction, they took an additional bank loan of Rs. 1 crore and financed the remaining by paying from their own funds. b. The company calculates depreciation using straight line method. The rate of depreciation is 10%.

Rs. Crores 5 100 105 30 10 145 ABC Pharma Balance Sheet as on 31-March-2020 Liabilities and Owners Equity Shareholders Capital Retained Earnings Non-Current Liabilities Bank loan Current liabilities A/c Payables Total Liabilities and Owners Equity Assets Non-current Assets Property, plant and Equipment Less: Accumulated depreciation Machinery Less: Accumulated depreciation Current Assets Cash and Equivalent Finished Goods Inventory A/c Receivables Total Assets 100 20 80 40 8 32 5 13 15 33 145 Notes to Accounts Note 1: Finished Goods Inventories (Medicine Cartons) Closing balance (Rs. Crores) No. of Cartons Rate 1300 0.01 * This is the Finished Goods Inventories of 13 crores Total 13