SVKM’S NMIMS SCHOOL OF BUSINESS MANAGEMENT. Mid Term Examination - Term —1 (Academic Year 2017-18) Program: MBA. Trimester: I Module Name: FINANCIAL ACCOUNTING AND ane ANALYSIS, a Date: - July -17 Instructions: Show all the necessary calculations. ‘The balance sheet of Citi Hoppers Ltd. which was into garment manufacturing was as follows: Citi Hoppers Ltd Balance Sheet ‘as on March 31, 2016 AMT (INR) (000) LIABILITIES Paid-in -capital 3000 Reserves and Surplus = "3955 [Long term toan (@ 11% pa) 1200 [CURRENT LIABILITIES [Accounts Payable 355 [Outstanding expenses (Electricity) B {TOTAL LIABILITIES $523, [ASSETS - { Plant and Machinery Factory building | cc [CURRENT ASSETS Cash & cash equivalents Inventory = cloth ~ > garments counts receivable TOTAL ASSETS _Plant represented historical cost of INR 40, 00,000 and accumulated depreciation INR. 15, 00.000. The company purchased plant on October 4, 2016 worth INR 5, 00,000, Twenty percent of it was paid by cheque and the balance was against a mortgage loan bearing interest at 12% p.a. The historical cost of Building was INR 38,00,000 and the accumulated depreciation was INR_8,00,000. Depreciation is charged on SLM basis @10% on Plant and Machinery and @S% on Factory building, ‘The company made the following payments during the year: ~The company had rented a showroom for which it had paid a Deposit of INR 2. 00,000 and an annual Rent of INR 2, 00,000. Salary INR 4,00,000 = Insurance paid on January 1, 2017 for a period of one year INR 2, 40,000 = Electricity INR $8,000 of which INR 13,000 belonged to the previous accounting year. Telephone INR 12,000 ~ Refreshment INR 8,000 ~ Fuel INR 60,000 = Chemicals purchased for manufacturing purpose INR 1, 00,000. The nature of chemicals is such, that they cannot be stored and have to be consumed as and when purchased, — Miscellaneous Expenses INR 8,000 Payments made to creditors INR 9,25,000 The salary unpaid was INR 1, 25,000. Interest paid on 30" September, 2016 was INR 66000. The balance interest was due on March 31, 2017 but was subsequently paid on April 2, 2017 The following is a summary of purchases and sales made during the year: Purchase of cloth on credit INR 10, 00,000 Purchase of cloth on cash INR 5, 00,000 Sale of garments on account INR 25, 50,000 Sale of garments against cash INR 9, 88,000 Sales worth INR 1, 00,000 were returned by customers on March 2, 2017 and cash was retumed to them, Cash received from Customers during the year INR 18, 50,000. Closing inventory of raw materials (cloth) was INR 5, 00,000 and that of finished garments was INR 8, 00,000. Ut was decided to create a provision for doubtful debts @10% on Accounts Receivables as on 31** March 2017. Prepare an Income statement for the year ending on 31” March 2017 and a Balance Sheet on that day. (25 marks)