Q No.1

Following information are available, with the help of these information please prepare a balance sheet which must provide following information:

Cash 40,000 A/c Payable ?????

A/c Receivable ???

Inventory ???? LTD 200,000

Fixed assets ???? Common stock ????

Less: Acc dep. (200,000) Retained Earning 50,000

Following supporting data may be used to calculate missing information:

Acc depreciation is 40% of fixed assets cost.

Outstanding shares 20,000 par value Rs.10

Current ratio is 4.75 and quick ratio is 2.25 while working capital is Rs.150,000.

Inventory turnover is 3 times and A/c receivable turnover is 10 times while annual sales is Rs.500,000 and Cost of goods sold is Rs.300,000.Assume that ending inventory and ending receivable amount is equal to average inventory and average receivable.