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SP VOLU 3 CHAP 1 TO 4
Class 12 - Accountancy
Time Allowed: 1 hour and 30 minutes Maximum Marks: 40
1. Assertion (A): Financial Statements of a company are prepared in the [1]
form prescribed in Schedule III of the Companies Act, 2013.
Reason (R): The Companies Act, 2013 prescribes Schedule III as per
which financial statements are prepared by all companies.

a) Both A and R are true and b) Both A and R are true but R
R is the correct explanation is not the correct
of A. explanation of A.

c) A is true but R is false. d) A is false but R is true.

2. Assertion (A): Operating ratio is = 100 - operating profit ratio. [1]

Reason (R): Operating ratio is computed to reveal the operating margin
on products sold.

a) Both A and R are true and b) Both A and R are true but R
R is the correct explanation is not the correct
of A. explanation of A.

c) A is true but R is false. d) A is false but R is true.

3. Financial analysis becomes significant because it : [1]

a) ignores price level changes b) is affected by personal bias

c) measures the efficiency of d) lacks qualitative analysis

business

4. Analysis of financial statement of an enterprise over a period of time is [1]

known as:
 a) Time Series Analysis b) Static Analysis

c) External Analysis d) Cross-sectional Analysis

5. Why government is interested in analysis financial statement [1]

a) To know whether the b) To Compile National

business is able to pay debt Income and taxes and
policy making.

c) To know the liquidity of d) To know the earning

business capacity

6. State any one limitation of Analysis of Financial Statement. [1]

7. State one advantage of financial statement analysis. [1]

8. State any two objectives of financial statement analysis. [1]

9. Under which heads are the following items shown in the Balance Sheet [3]
of a company as per Schedule III?
i. Forfeited Shares Account,
ii. Proposed Dividend,
iii. Unclaimed Dividend, and
iv. Arrears of Fixed Cumulative Dividend.

10. Gross Profit of a Company is 25% of Cost of Revenue from Operations. Its [3]
credit Revenue from Operations are twice its cash Revenue from
Operations. If the credit Revenue from Operations are: ₹ 4,00,000,
calculate the G.P. ratio.

11. Under which major headings and subheadings will the following items [4]
be presented in the Balance Sheet of a company as per Schedule III, Part
I of the Companies Act, 2013?
i. Balance of the Statement of Profit and Loss
ii. Interest accrued on investments
iii. Livestock
 iv. Licenses and Franchise
v. Securities Premium Reserve
vi. Trade Marks
vii. Work in Progress
viii. 9% Debentures repayable during the current year

12. From the following Balance Sheet of Swaraj Ltd., as at 31st March, 2019, [4]
prepare a common size Balance Sheet:
31.3.2019 31.3.2018
Particulars Note No.
₹ ₹
I Equity and Liabilities:
1 Shareholders Funds:
(a) Share Capital 34,00,000 30,00,000
(b) Reserve and Surplus 10,00,000 10,00,000
2 Non-Current Liabilities:
Long-term Borrowings 5,00,000 3,00,000
3 Current Liabilities:
Trade Payables 1,00,000 7,00,000
Total 50,00,000 50,00,000
II Assets:
1 Non-Current Assets:
Fixed Assets:
Tangible Assets 36,00,000 28,00,000
2 Current Assets:
(a) Inventories 13,00,000 20,00,000
(b) Cash and Cash Equivalents 1,00,000 2,00,000
Total 50,00,000 50,00,000

13. Calculate Gross Profit Ratio from the following information: [4]
Inventory Turnover Ratio : 6 times
 Average Inventory : ₹ 4,00,000
Goods are sold at a profit of 25% on cost

OR
From the following information, calculate any two of the following ratios
i. Current ratio
ii. Inventory Turnover ratio
iii. Debt equity ratio
Information
Revenue from operations (Net sales) Rs. 5,00,000, opening inventory Rs.
7,000, closing inventory Rs. 4,000 more than the opening inventory, net
purchase Rs. 1,00,000 less than revenue from operations, operating expenses
Rs. 30,000, liquid assets Rs. 75,000, prepaid expenses Rs. 2,000, current
liabilities Rs. 60,000, 9% debentures Rs. 3,00,000, long-term loan from bank
Rs. 1.00,000, equity share capital Rs. 10,00,000 and 8% preference share
capital Rs. 2,00,000.

14. Read the text carefully and answer the questions: [4]
Hypothetical extract of the Balance sheet of Ramnath Ltd and answer
the questions given below
Balance sheet as per Schedule III Part I of Companies Act 2013
Note Amount (₹) 2020- Amount (₹) 2019-
Particulars
No 21 20
I. Equity & Liabilities
(1) Shareholders’ funds
(a) Share Capital 12,00,000 11,00,000
(b) Reserves & Surplus 3,00,000 2,00,000
(2) Non-current
liabilities
Long term borrowings 2,40,000 1,70,000
(3) Current Liabilities
(a) Trade payables 1,79,000 2,04,000
 (b) Short - term
50,000 77,000
provisions
Total 19,69,000 17,51,000
II Assets
(1) Non-current Assets
(a) Fixed Assets
(i) Tangible 10,70,000 8,50,000
(ii) Intangible 40,000 1,12,000
(2) Current Assets
(a) Current Investments 2,40,000 1,50,000
(b) Inventories 1,29,000 1,21,000
(c) Trade Receivables 1,70,000 1,43,000
(d) Cash & Cash
3,20,000 3,75,000
equivalents
Total 19,69,000 17,51,000

(i) Reserves & Surplus does not include:

a) Revaluation Reserve b) Capital Reserve

c) Capital Redemption d) Reserve Capital

Reserve

(ii) Which of the following does not constitute Current liabilities as the
operating cycle of the company is 12 months:

a) Trade payables expected b) Trade payables expected

to repay after 24 months to repay within 12
months

c) Trade payables expected d) Trade payables expected

to repay within 3 months to repay within 6 months

(iii) Short term provisions include:

 a) Provision for Tax & b) Sundry creditors &
Proposed dividend Proposed dividend

c) Proposed dividend d) Provision for Tax &

Provision for Provision for
Depreciation Depreciation

(iv) Example for Intangible asset is:

a) Public deposits b) Mastheads & Publishing

titles

c) Investments in other d) Furniture

companies

15. Read the text carefully and answer the questions: [5]
Following is the data given of Prahlad Ltd.
Particulars 31.3.2020 (₹) 31.3.2019 (₹)
Revenue from Operations 15,00,000 12,00,000
Other Income 30,000 20,000
Cost of Materials Consumed 7,00,000 5,50,000

(i) What is the percentage change in the Revenue from operations?

a) 50% b) 20%

c) 30% d) 25%

(ii) What is the percentage change in the Total Revenue earned?

a) 23.88% b) 20.41%

c) 25.41% d) 27.27%

(iii) What is the change in the profit before tax?

a) ₹ 10,000 b) ₹ 1,50,000

c) ₹ 1,60,000 d) ₹ 3,10,000

(iv) What is the percentage change in the Total Expenses?

 a) 23.88% b) 24.41%

c) 27.27% d) 25%

(v) Percentage change is calculated in-

a) balance sheet b) commonsize statements

c) comparative statements d) Both a and b

16. Read the text carefully and answer the questions: [5]
Rohit Ltd. has provided the following information:
Credit Revenue from operation: 3,00,000
Cash Revenue from operation: 25 % of total revenue from operation
Total purchases during the year: 2,40,000
Cash purchase: 20% of Credit purchase
Excess of closing inventory over opening inventory: 10,000
Carriage Inward: 20,000
Trade receivable turnover ratio: 15times
Opening debtor was l/3rd of closing debtor
Average trade payable: 50,000

(i) Cash Revenue of the company will be

a) 3,00,000 b) 1,00,000

c) 4,00,000 d) 2,00,000

(ii) Credit Purchase of the company will be

a) 2,40,000 b) 2,48,000

c) 40,000 d) 2,00,000

(iii) Cost of revenue from operation of the company will be

a) 2,00,000 b) 2,40,000

c) 2,60,000 d) 2,50,000
(iv) Closing trade receivable will be

a) 30,000 b) 10,000

c) 45,000 d) 90,000

(v) Trade Payable turnover ratio will be

a) 4 times b) 3 times

c) 2 times d) 5 times