Accountancy

Time Allowed: 1 Hour M.M:12

Q1: The First Quarter Report of Prakash Petro Chemicals Ltd. Gives the following information
about segment performance :

SEGMENT CAPITAL EMPLOYED PROFIT BEFORE INETEREST TAX &

(Rs) DIVIDEND (Rs)
A 4,00,000 1,00,000
B 14,00,000 70,000
C 7,00,000 20,000

Using ratio analysis comment on the following (i) which is the best segment? (ii) Which segment
should be discarded? 3

Q2: Dhanpati Ltd. Starts his business with Rs.10,00,000 on 1/4/14. He borrows Rs.50,00,000@15% p.a.
from the bank on 31/1/15. They bought a land for Rs.20,00,000 and paid wages Rs. 12,000 in advance for
two months. They bought goods of Rs. 2,00,000 for cash. They sold goods for Rs. 4,00,000 for cash. He also
paid interest on loan for two months. Find out cash flows on account of various activities for the year
2014-15. 3

Q3: Surajmal was good at making designs. He started making designer furniture. He bought a
factory for `Rs.20,00,000, spent Rs. 2,00,000 on its building and purchased wood forRs. 5,00,000.
Find out net Cash Flow from investing and operating activities and identify the accounts
involved. 3

Q4: Asma did her fashion designing and started her own business with Rs. 50,00,000 which she arranged
by getting a loan of Rs.20 lakhs from his father and Rs.30 lakhs from a bank @ 12% p.a.She bought
machines for Rs. 10 lakhs, raw material for Rs. 8,00,000 and paid rent of Rs. 15,000 during the year. What
percentage of total funds at his disposal has been spent on various activities.

Q5:Ram is cloth retailer and he purchased silk cloth @ Rs.500 each. He fixes a price which is
20% above cost. He gives a trade discount of 5% for Cash Sales. Sales not given. How much
profit he earns per shirt and to which account will it be credited? 3