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PAPER 1 : ACCOUNTING

15

SUGGESTED ANSWERS / HINTS

1.

Ring Ltd.
Profit and Loss Statement for the year ended 31 st March, 2015
Particulars
Revenue from operations
Other income
Total Revenue [I + II]
Expenses:
Cost of purchase [4,20,000+ 1,60,000]
Changes in inventories [20,000-1,80,000]
Employee Benefits Expense
Finance Costs
Depreciation and Amortization Expenses
Other Expenses
Total Expenses
Profit before Tax (III-IV)
Tax Expenses @ 30%
Profit for the period

I
II
III
IV

V
VI
VII

Note No.

(` In lacs)
10,40,000
24,000
10,64,000
5,80,000
(1,60,000)
1,20,000
56,000
40,000
1,24,000
7,60,000
3,04,000
(91,200)
2,12,800

Balance Sheet of Ring Ltd. as at 31 ST March, 2015

Particulars
I

Note
No.

EQUITY AND LIABILITIES

(1)

Shareholders Funds
(a) Share Capital
(b) Reserves and Surplus

(2)

1
2

Non-Current Liabilities
(a) Long-term Borrowings (Debentures)

(3)

4,00,000
2,22,442
4,00,000

Current Liabilities
(a) Trade Payable (Sundry Creditors)

1,84,000

(b) Other Current Liabilities

42,000

(c) Short-Term Provisions

2,11,558

Total

14,60,000

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