Question During the year, net profit Taka 90,000 while a sale of the company during the same

e time period was Taka 7, 50,000. 80% of which was in credit terms.

Balance Sheet
Share capital Equity shares @ To 10 each 12% preference shares Security provisions General Reserve Plant Replacement revenue 15% Debenture Provisions for taxation Taxation Preference Dividend Equity Dividend Requirements 1) Net profit percentage on sales 2) Current ratio 3) Liquid ratio
4) Debtors turnover and debtors settlement period(given average debtor is TK 1,20,000)

Fixed Asset 200,000 50,000 20,000 55,000 30,000 7,000 42,000 22,000 30,000 18,000 Less depreciation Stock Debtors Cash @Bank Cash in hand Preliminary expenses 295,000 50,000 125,000 27,000 6,000 5,000

5) Equity shareholders interest in the company 6) Returns on equity shareholders interest

Solution Given that Net profit TK 90,000 Sales TK 7, 50,000

a)

b)

c)

d)

e) Equity Shareholders interest in the company

Equity Share Capital Securities Premium account General Reserve Plant Replacement Reserve Less Preliminary Expenses

200,000 20,000 55,000 30,000 305,000 5,000 300,000

f)

*80% of 7, 50,000 = 6, 00,000 **Preferred Dividend = 12% of Preferred shares = 12% of 50,000 = 6,000.