OM

Financial Reporting and Analysis

Mid-term Examination
Maximum Marks: 30 Duration 2 Hrs.

Instructions:
1. You are required to submit the case solution (Section A) in excel sheet or Ms Word
Document.
Section A: Case Good Health Company
Good Health Company is a well-known drug store chain. A condensed balance sheet of the
store as on 31st March 2020 is a follows:
Assets Liabilities and
Shareholders's
Equity
Cash ₹ 4,668.00 Accounts Paybles ₹ 14,430.00
Inventories ₹ 24,132.00 Other liabilities ₹ 23,391.00
Plant, property and Equipments ₹ 53,562.00
Shareholders Equity
Capital ₹ 3,000.00
Retained Earnings ₹ 41,541.00
Total shareholders'
Equity ₹ 44,541.00
₹ 82,362.00 ₹ 82,362.00

The following transactions occurred in subsequent two months.

1. On 1st April, Store replenished inventory for ₹ 250,000 on accounts to be payable with
3 months.
2. On 1st April, the chain has raised ₹ 6,00,000 from National Bank to be repaid in 4 years
in equal principal payments. is raised through issue of shares. The interest rate of 10%
will be payable at the end of each year with instalment.
3. A laptop is purchased for ₹ 48,000, with the expected economic life of 24 months.
4. Medicines inventory purchased for ₹350,000.
5. ₹ 7200 were paid towards renewal of licence for 2 years.
6. The income generated through sale of medicine between 1st April 2020 to June 30
2020 is ₹11,00,000, out of which ₹ 900,000 on cash basis.
7. The medicines inventory valued as on 30th June 2020 was ₹ 29,132.
8. The other expenses involved were:
 Rent ₹ 20,000 per month
Telephone ₹ 1000 per month
Utilities ₹ 2800 per month
Payroll ₹ 60,000 per month.
Annual payment towards bank loan ₹ 210,000.

Required:
1. Prepare the Balance sheet of Good Health Company as on 30th June 2020.
2. Prepare Income statement of the company for the first three months from 1 April 2020
to 30th June 2020. (3.5+3.5 Marks)

Section B
Instructions:
1. Type the provided link on google to open the google doc.
2. Link to the doc:
https://forms.gle/p3iK54SpahwNKqop6

3. Document is divided into three parts

a. Details: Name, email and code. Code will be shared with the question paper.
b. Questions relating to Good Health Company Case based on your solution (10
*1/2 marks=5 marks)
c. Questions other than Case (18 *1 mark=18 Marks)