Comprehensive Project 1

business of M/s Alpana Kids Garment

A Study of the
1. Name o f t the Project:
(i) To know whether M/s Apana Kids Garments is a success or a failure
nd company. The
of the Project
2 objectives of
:

To know whether the Bank will give loan for their business.
(i)
2015
One year ending 31st March
period of Study: Ratios
g
ratios as per 3
Analystical
ols used: Necessary Accounting
ce Sheet 4. Statement
Material: Project
5.Source
Garments
Alpana Kids
STATEMENT: M/s
PROJECT

each. In March, 2014, he sold his shares @ 7 980 each

shares of ICICi Ltd. of R 100
Mr.
Mr. Kanha had 1,000
of Kid Garments on 1 April, 2014 under the n a m e of
he decided to set up a business
with this amount,
transactions should be made through bank and deposited the
Garments. He decided that all
M/S Alpana Kids
Bank. He a running factory of Kid Garments consisting of Factory Land and
purchased
in Dena
whole money
3,50,000, Furniture ? 50,000, Stock 90,000 but agreed to pay
Building 4,00,000, Plant and Machinery
consideration. He later approached his banker for a loan to meet the working capital
9,50,000 as purchase
Bank advanced loan amounting to 4,00,000 @ 10% p.a. He purchased a Laptop for 30,000.
requirement.
follows
His transactions for the year ending 31st March, 2015 were as
Total Purchases (R 8,30,000 in credit) 12,40,000
Total Sales ( 15,25,000 in credit) 20,50,000
Wages 2,30,000
Carriage Inwards 20,500
Power and Lighting 15,500
Salary of Staff and Manager
1,25,0000
Postage and Call
4,200
Printing and Stationery
3,800
Advertising 16,700
Insurance Premium
12,100
Conveyance 13,200
Cash received from Debtors
10% Fixed Deposit in Dena Bank
12,10,00o
Paid to Creditors 5,00,000
Bills Receivable received 6,50,000
from debtors
Bills 1,00,000o
accepted in favour of creditors
80,000
Drawings during the year @ 5,000 p.m.
You 60,000
are
required to:
Journalise these transactions and post them into ledger accounts and
prepare a Trial Balance.
2) Prepare Trading and Profit and Loss Account for the
year ended 31st March, 2015 and Balance Sheet as at
that date after considering the following
adjustments:
 Adjustments
() Closing Stock 1,10,000
(inDepreciate Land and Building by 5%, Plant and Machinery and Furniture by 10% and Computer by 25%.
(iin) Salary Outstanding 8,000 and wages outstanding 15,000.
(iv) Insurance premium Prepaid 1,200.
(v) Accrued Interest 25,000
(3) Commenton the
profitability and short-term solvency of the firm when similar firms earn Gross Pront
@20% and Net Profit @ 10%.
(4) Also compute Interest Coverage Ratio to see whether the firm can meet its interest burden regulariy in
future.
(5) In future M/s Alpana Kids Garments would be in need of more funds for
expansion purpose. F
theyare
approach the bank for further loan. Suggest on the basis of the ratios calculated
planning to
above, whether bank can grant more loan to this firm
?
Sol. In the Books of Alpana Kid Garments
(1) Journal
Date Cr.)
Particulars Dr.)
 Specific Project 2
Project on Analysis of Cash Flow Statement
Analysis of Cash Flow Statement of Maruti Suzuki India Ltd.

Summary of Cash Flows of Maruti Suzuki India Ltd.

for the years 2014 and 2013
Particulars 31st March 2014 31st March 2013
Profit before Tax
3658.50 2991.00
Net Cash Flow from
Operating Activity 4903.50
Net Cash Used in Investing
4301.10
Activity (4892.90)
Net Cash used in Financing
(3491.00)
Activity (65.90)
Net Increase/Decrease in Cash and Cash (966.30)
Equivalents (55.30) (156.20)
Cash and Cash Equivalents-Beginning of the year 125.00 281.20
Cash and Cash Equivalents-End of the year
69.70 125.00
Solution: Detailed analysis of the Cash Flow Statements of Maruti Suzuki India Ltd.
 Specific Project 4

Specific project based on Ratio Analysis

Following information of Rama Ltd. is given to you:

Particulars 2013-14 2014-15

Revenue from Operations (Cash Revenue from Operations 30%) 10,00,000 14,00,0000
Gross Profit 25% 28%

Inventory, April 1 1,75,000

Inventory, March 31 1,90,000 2,00,000
Trade Receivables, April 1 70,000
Trade Receivables, March 31 80,000
76,000
Comment upon the efficiency of management to () generate revenue from operations () collection of debts.