Problem1.

1
The following are the balance sheet of surindra LTD., for the year ended 31 st dec,2006-07

Particulars 2006 2007 Particulars 2006 2007

Rs Rs Rs Rs
EQ.SC 2,00,000 3,30,000 FA (-) DEPN 2,40,000 3,50,000
PREQ.SC 1,00,000 1,50,000 STOCK 40,000 50,000
RESERVES 20,000 30,000 DEBTORS 1,00,000 1,25,000
P&L A/L 15,000 20,000 B/R 20,000 60,000
BANK O/D 50,000 50,000 PREP.EXP 10,000 12,000
CREDITORS 40,000 50,000 CASH IN HAND 40,000 53,000
PROV.(TAX) 20,000 25,000 CASH AT BANK 10,000 30,000
PROP.DIVI 15,000 25,000

TOTAL 4,60,000 6,80,000 TOTAL 4,60,000 6,80,000

Prepare a comparative B/S of the company and study its financial position

Problem1.2
With the help of comparative b/s, study the financial position of Mahindra Company LTD, Bombay for the year
2006&2007:

LIABILITIES 2006 2007 ASSETS 2006 2007

B%REDEEMABLE CUM PREF.SC 2500 2500 FIXED ASSETS- DEP 9705 11032
13/2 %REDEEMABLE - 3000 INVESTMENT 1947 2429
CUM.PREF.SC
ORDINARY SC 5500 13200 CURRENT ASSETS :
RESERVES 2500 3450 RECEIVABLE 1217 1584
P&L A/L 116 99 ADV.TAX.PAID 1818 500
LOAN &ADVERTISEMENT 71745 51282 BANK BALANCE 2419 1886
S.CRS 27122 14732 SUNDRY DEBTORS 38700 36951
PROV.FOR.TAX 5012 4578 STOCK IN TRADE 58334 36769
CUSTOMER CR BALANCE 1603 2079 STORE,SPARES… 1890 2042
ACCRUAL 695 237 PREPAID EXP 7987 3772
UNCLAIMED DIVIDEND 6 107
PROPOSED DIVIDENT 1113 1420
CONTINGENT LIABILITIES 75 81
GRATUITY - 193
TOTAL 117987 96965 TOTAL 117987 96965
PROBLEM 1.6

Following income statement of a business are given for the years ending 31 st dec 2006 & 2007. Rearrange them in
a comparative form and make comments

Income statement

Particulars 2006 2007 Particulars 2006 2007

To COGS A/C 9,00,000 9,50,000 BY SALES A/C 15,25,000 17,00,000
TO ADMN.EXP A/C 93,250 95,980 BY RENT AND DIVISION A/C 7,500 6,200

TO SELLING EXP A/C 1,90,000 2,09,000 BY PROFIT (SALE OF LAND) 6,000 8,000
TO RENT PAID A/C 8,000 7000

TO LOSS SALE OF MACHINE 2,500 800

TO INCOME TAX A/C 85,000 1,68,000

TO NET PROFIT A/C 2,59,750 2,83,420

TOTAL 15,38,500 17,14,200 TOTAL 15,38,500 17,14,200

Problem 1.7
The comparative income statement of oswal industries Ltd are given for the year 2007 and 2008.
Analyze and interpret the significant of changes in these statements

Particulars 31.12.2007 31.12.2008

Sales 9,82,400 7,27,650
Less: discounts, returns etc. 13,260 (11,750)
Net sales 9,69,140 7,15,900
Less cogs 6,15,460 4,35,640

Gross profit 3,53,680 2,80,260

Less: admin & gen exp 70,700 53,215
Less: selling expenses 1,78,250 1,62,440

Net operating profit 1,04,730 64,605

Less: interest on loans 17,215 21,600

Net profit before taxes 87,575 43,005

Corporation tax 32,100 16,000
Net profit for the year 55,415 27,005

PROBLEM 1.10
FOLLOWING ARE THE BALANCE SHEET OF SANSAR INDUSTRIES LTD FOR THE YEAR ENDING DEC 31 2006&07

LIABILITIES 2006 2007 ASSETS 2006 2007

EQ.SC 4,00,000 6,00,000 LAND & BUIDINGS 2,70,000 1,70,000
RESERVES&SURP 3,12,000 3.54,000 P&M 3,10,000 7,86,000
DEBENTURES 50,000 1,00,000 FURNITURES& FIXTURES 9,000 18,000

LONG TERMS LOANS ON 1,50,000 2,55,000 OTHER FIXED ASSETS 20,000 30,000
MORTAGE

A/C PAYABLE 2,55,000 1,17,000 LONG TERMS LOANS 46,000 59,000

OTHER CL 7,000 10,000 CASH IN HAND & BANK 1,18,000 10,000
RECEIVABLES 2,09,000 1,90,000
INVENTORS 1,60,000 1,30,000
PREPAID EXPENSES 3000 3,000
OTHER CA 29,000 40,000
TOTAL 11,74,000 14,36,000 TOTAL 11,74,000 14,36,000

PROBLEM 1.12
THE FOLLOWING FIGURES RELATE TO THE ACTIVITIES OF SK LTD FOR THE YEAR ENDING MARCH 2008

SALES 7,50,000
PURCHASES 3,75,000
OPENING STOCK 70,000
CLOSING STCK 80,000
ADMN EXPENSES
SALARIES 37,000
RENT 12,000
POSTAGE & STATIONARY 5,000
PROV.FOR TAX 50,000
SELLING AND DISTRIBUTION EXPENSES
SALARIES 18,000
ADVERTISEMENT 6,000
COMMISSION ON SALES 7,500
DISCOUNT 2,000
NON OPERATING EXPENSES

INTEREST 5,000
LOSS ON SALE OF ASSETS 11,500
NON OPERATING INCOME
PROFIT ON SALE OF INVESTMENTS 9,500
YOU SHOULD STUDY THE INCOME STATEMENT OF THE CONCERN WITH THE HELP OF COMMIN SIZE
STATEMENT