Financial Reporting & Analysis Mock Test for Mid Term Examination Based on the following information : (1)

(2) (3) (4) Show Journal Entry for sales and VAT 2 marks Ledger account for VAT payable 1 mark Cash Book 4 marks Trial Balance as on 31.3.2012 before adjusting for depreciation for the year , current tax, deferred tax and closing stock 4 marks (5) Statement of Profit and Loss 7 marks (6) Balance Sheet 7 marks Marks distribution for ( 3) : mark for each correct entry in the Cash Book Marks distribution for (4) : 1/6 mark for each correct entry Marks distribution for (5) Computation of accounting and tax depreciation Deferred tax Other items Marks distribution for (6) Notes for Reserves and Surplus Presentation of Liabilities Presentation of Assets Presentation of Shareholders Funds 2 marks 2 marks 2 marks 1 mark 2 marks 1 mark 4 marks

Figures are in rs. Cr. Account Balances Purchases ( excluding refundable excise duty) Credit purchases 80% Payment to trade payables Excise duty refundable on purchases Salaries and wages TDS deducted TDS payable Manufacturing expenses 12% Loans Instalment paid on 30.9.2011 Instalment payable on 30.9.2012 12% Debentures issued on 1.1.2012 Share capital General reserve Plant& Machinery Accumulated depreciation Accumulated depreciation as per IT Law 7000 Deferred tax liability Machinery purchased on 1.1.2012 Trade Receivables Trade Payables Admn , Selling & Dis Expenses Sales excluding sales tax ( all sales are on credit) Collections from Trade Receivables VAT on sales VAT paid VAT payable Depreciation on Plant & machinery Accounting 4.25% SLM Tax 25% WDV Excise duty on sales Excise duty paid after adjustment of excise duty refundable Excise duty refundable on closing stock is carried forward to the next year Advance tax paid 680.00 600.00 700.00 900.00 7800.00 7200.00 350.00 348.00 2.00 13100.00 4000.00 2000.00 3500.00 3000.00 1000.00 1000.00 5000.00 1.4.2011 Dr 1.4.2011 Cr 2400.00 During 2011-12

(4) Trial Balance as on 31.3.2012 31.3.2012 31.3.2012

2400.00 230.00 1200.00 90.00 7.00 750.00

973.50 4000.00

220.00

Interest paid Excise duty refundable on Closing stock: Raw material Finished Goods Cash & bank Balances 473.50 14173.50 14173.50

450.00 ? ? 25,686.50 25,686.50

Other Information:
Dividend proposed for 2011-12 40% Rs. Cr Dividend distribution tax @ 18.5% plus surcharge @5% on distribution tax and education cess @ 3% on DDT & Surcharge Transfer to General reserve Closing Stock : Raw material Finished goods (Raw material component Rs. 550 Cr) Accumulated depreciation as per IT Law Rs.7000 Cr Tax depreciation @ 25% WDV method Excise duty paid : Excise duty on sales minus ( excise duty refundable on purchase minus excise duty refundable on closing stock ) Excise duty on closing stock Provision for Tax : Corporate Tax 30% plus 5% surcharge on corporate tax plus 3% education cess on corporate tax plus surcharge Equity shares are of Rs. 10 each 80.00 600 800

600

(1) Journal Entries

(2) Ledger Account

------------------( 3) Cash Book

-----------------

Rs. in Cr To Balance b/d To debentures To Trade Receivables By Loan By Interest By Purchases By Salaries & wages By TDS payable By Mfg expn By P&M By Admn , S&D By VAT By Excise duty By Advance Tax By Trade payables By Balance c/d

Rs. in Cr.

Statement of Profit and Loss Income Revenue from Operations Expenses Raw material Consumed Change in Finished goods stock Employee Benefit Expenses Finance Costs Depreciation Other expenses Profit Before tax Current Tax Deferred Tax PAT EPS

Rs. in Cr. 7120.00

1800.00 -880.00 1200.00 450.00 599.25 1730.00 4899.25 2220.75 -339.05 -381.53 1500.17 7.50

Rs. in Cr

(6) Balance Sheet as on 31.3.2012 Equity & Liabilities Shareholders' funds Share Capital Reserves & Surplus Liabilities Non-current Liabilities Long term borrowings Deferred tax Liabilities Current Liabilities Trade Payables Other payables Short term provisions Total Assets Non-current Assets Tangible fixed assets Current Assets Inventories Trade Receivables Cash and Cash equivalents Other Current Assets Total

31.3.2012

31.3.2011

2000.00 3500.00 5500.00

3000.00 973.50 3973.50 700.00 0.00 0.00 700.00 10173.50

9100.00 9100.00 0.00 600.00 473.50 0.00 1073.50 10173.50