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  • Subject: Accounting and Finance For Managers Marks: 20: All Questions Are Compulsory

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    tafi66
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    The document provides condensed balance sheets and income statements for Good Luck Limited for 2006 and 2007, as well as additional financial information. Good Luck Limited saw an increase in total assets from Rs. 9,03,000 in 2006 to Rs. 10,05,000 in 2007. Revenue grew from Rs. 15,00,000 in 2007, with net income of Rs. 1,20,000. Cash flows included collection of Rs. 15,30,000 from customers, payments of Rs. 10,80,000 to suppliers and Rs. 2,46,000 for expenses and taxes. The company also purchased a building for Rs. 1,00,000.

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    44334129 Accounting and Finance for Managers

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    The document provides condensed balance sheets and income statements for Good Luck Limited for 2006 and 2007, as well as additional financial information. Good Luck Limited saw an increase in total assets from Rs. 9,03,000 in 2006 to Rs. 10,05,000 in 2007. Revenue grew from Rs. 15,00,000 in 2007, with net income of Rs. 1,20,000. Cash flows included collection of Rs. 15,30,000 from customers, payments of Rs. 10,80,000 to suppliers and Rs. 2,46,000 for expenses and taxes. The company also purchased a building for Rs. 1,00,000.

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    Attribution Non-Commercial (BY-NC)
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    11 views3 pages

    Subject: Accounting and Finance For Managers Marks: 20: All Questions Are Compulsory

    Uploaded by

    tafi66
    The document provides condensed balance sheets and income statements for Good Luck Limited for 2006 and 2007, as well as additional financial information. Good Luck Limited saw an increase in total assets from Rs. 9,03,000 in 2006 to Rs. 10,05,000 in 2007. Revenue grew from Rs. 15,00,000 in 2007, with net income of Rs. 1,20,000. Cash flows included collection of Rs. 15,30,000 from customers, payments of Rs. 10,80,000 to suppliers and Rs. 2,46,000 for expenses and taxes. The company also purchased a building for Rs. 1,00,000.

    Copyright:

    Attribution Non-Commercial (BY-NC)
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    of 3

    SUBJECT : ACCOUNTING AND FINANCE

    FOR MANAGERS

    Marks: 20

    All questions are compulsory:


    Good Luck Limited has submitted the following condensed Balance Sheets as on 31st December,
    2006 and 31st December, 2007 and the Statement of Income and Reconciliation of Retained
    Earnings for the year ended 31st December, 2007:
    Balance Sheets

    Liabilities

    Share Capital
    General Reserve

    Retained Earnings
    6% Debentures

    2006

    2007

    Rs.

    Rs.

    3,00,000

    4,00,000

    Fixed Assets

    80,000

    1,00,000

    Less:
    Accumulated
    depreciation

    60,000

    90,000

    2,00,000

    1,25,000

    Loans on
    Mortgage
    Sundry Creditors
    Wages outstanding

    40,000
    1,85,000
    3,000

    1,05,000
    5,000

    Assets

    2006

    2007

    Rs.

    Rs.

    7,00,00
    0

    8,00,000

    2,25,00
    0

    2,60,000

    4,75,00
    0

    5,40,000

    Stock

    1,25,00
    0

    2,00,000

    Sundry Debtors

    1,80,00
    0

    1,50,000

    95,00

    89,000

    3,00

    6,000

    25,00

    20,000

    Cash in hand /
    bank

    Prepaid Expenses
    0

    Provision for
    Income-tax

    75,000

    1,40,000

    Preliminary
    Expenses

    9,03,000

    10,05,000

    0
    9,03,00
    0

    Statement of Income and Reconciliation of Retained Earnings


    Rs
    Sales

    15,00,000

    Less: Cost of goods sold:


    Stock on 1st Jan, 2007
    Add: Purchases

    1,25,000
    10,00,000
    11,25,000

    Less: Stock on 31st Dec. 2007

    2,00,000
    9,25,000
    5,75,000

    Less: Wages

    40,000

    Gross Income
    Less: Sundry Expenses
    Preliminary Expenses written off
    Depreciation

    5,35,000
    2,05,000
    5,000
    35,000
    2,45,000
    2,90,000

    Less: Provision for Income Tax


    General Reserve
    Dividend Paid
    Net Income for the year (Retained)

    1,40,000
    20,000

    1,50,000

    1,00,000

    1,20,000
    30,000

    10,05,000

    Add Retained Earnings on 31-12-2006

    60,000
    90,000

    Additional Information:
    1. The cash inflow and outflow during the course of operations of the firm are as follow:
    Collection from customers

    Rs 15,30,000

    Cash paid to suppliers

    Rs 10,80,000

    Cash paid to employees and other expense

    Rs 2,46,000

    Income tax paid during the year

    Rs

    75,000

    2. During 2007, the company purchased a building for Rs 1,00,000.


    You are required to prepare Cash Flow Statement and comment on cash flow condition of
    the company.

    *****************************************************************************
    *

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