Hints andSolutions

45. According to the materiality ratio as it is

C's capital = 175000 x 5,1
principle only material transactions
should be disclosed in detail in the
4 5 and does notcapitalisatior
affect long
= 43750 of the company.
financial statement. So, because of
this principle, a small calculator is 53. Let the originalvalue of the asset 60. Dividend is paid on
accounted as an expense and not be 100. preference shares. It is t
raising capital.Therefore
disclosed as an assets in the Rate of Depreciation = 15%
balance sheet.
Depreciation for the first year = 15
recorded under financino
the cash flow
47. Financial leverage refers the use
Depreciation for the second year 64. Ujwal DISCOMstatement
of debt to acquire additional assets Ass
so that profit can be increased. It is =(100- 15) x
15 Yojana (UDAY) helps
sick Power Distribution
int
the ratio of total debt tO total assets. 100
It has tWO primay advantages, which = 85 x 15 .=12.75 (DISCOMS) by providing
are as foliows 100 financial assistance and
permanent solution for th
() Enhanced earnings Depreciation for the third year problems:
(i) Favourable tax 15 65. From amongst the c
treatment = (85- 12.75) x
49. The amount to be debited to 100 given, Germany has the
profit and loss account can be = 72.25 x. 15
= 10.8375 nominal GDP of $ 34667:
ascertained by preparing provisions 100 followed by France ($ 24
for bad debts accounts. .. WDV after third year = 61,4125 India ($ 2263522) and Br
($ 1796187). In context o
Provision for Bad Debts A/C When WDV is 61.4125, original cost United States has the hic
Dr. =100
Cr. nominal GDP, followed b
Particulars Amt ) Particulars Amt () ..When WDV is 49130, original cost European Union, China,
To Bad By bal- 4000 100 x 49130
=80000
Germany.
Debts 6000 ance bd 61.4125 66. Zero Defect Zero Eff
To bal 10000 By P&L 12000 to Make in India scheme
ance cd
54. Amount forfeited
Alc (Bal =(2 + 3) x 20000=100000 Government. According
ancing scheme, the goods prod
figure) Amount utilised at the timne of reisSue
India should be free from
16000 16000 = 2 x 20000) = 40000
and should have no harm
50. Under staterment of opening Amount to be transferred to C/R on the environment.
stock will result in overstatement of = 100000 40000 = 60000
67. Wholesale Price Inde
net profit by 20000. Overstatement 56. In First In First Out (FIFO) measures the changes i
of closing stock will also result in method, inventory purchases first is general price level of the
Overstatement of net profit. So, in all issued first. Therefore, the issue is calculated on the basis
net profit will be overstated by price is the price of the oldest Commodities which are t
45000. avilable stock. whole sale rates. It is cor
57. In horizontal analysis, an analyst weekly basis and has a
51. The receipt and payment
account is a summary of cash Compares ratios or line items in a 2004-05.
transactions. Therefore, it is a real company's financial statements over 68. The Pradhan Mantri
account. a certain period of time. Ratios, Yojana requires that farm
52. Combined capital of A and B for common size statements and premium of 4% for all rac
4 comparative statements are important incorrect
5
share =R175000 techniques of horizontal analysis. 71. Union Government n
..Total capital of the firm
58. Debt-equity ratio is
calculated by Heritage City Developn
aAugmentation
dividing company's Yojana (
= 175000 x 5
long-term debts
by shareholder's equity. Scheme to preserve and o
4 Issue of
bonus shares does not affects this cultural heritage
the rich