GOBIND KUMAR JHA 9874411552

B.Com. (Semester – VI)

FR & FSA
Practice Sheet
Introduction to FR & FSA
1. With the help of following information for the year ended 2024, prepare a “Common Size Income
Statement”:
Selling and Distribution Expenses ₹ 10,000
Administration Expenses ₹ 20,000
Cost of Sales 75% of Net Sales
Income Tax 20% of Net Profit before Tax
Net Income after Tax ₹ 48,000
Other Income ₹ 10,000

2. Prepare a Common Size Income Statement frim the following information:-

Sales ₹ 9,00,000 Administration Expenses ₹ 50,000
Sales Return ₹ 1,00,000 Non-operating Expenses ₹ 20,000
Cost of Sales ₹ 4,50,000 Income Tax 40%

3. From the following information, prepare a comparative income statement:-

Particulars 31.03.2023 (₹) 31.03.2024 (₹)
Revenue from Operations (Sales) 3,75,000 5,25,009
Other Income 20,000 30,000
Cost of Goods Sold 3,00,000 3,90,000
Administration Expenses 1,25,000 15,000
Selling & Distribution Expenses 10,000 15,000
Income Tax 30% 30%

4. From the trend percentages supplied below, prepare a comparative statement of Current Assets in absolute
value taking 2021 as the base year:
Trend Percentage Corresponding Value of Current Assets
2022 2023 2024 2024 (₹)
120 130 150 7,200 – Cash at Bank
130 140 200 13,600 – Debtors
160 220 250 8,000 – Finished Goods
175 250 300 9,000 – W.I.P.
110 150 175 3,500 – Raw Materials

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5. From the following data relating to two companies, prepare Common Size Income Statements for the year
ended 31.03.2024 and state which of the companies is having (i) relatively lower ‘cost of goods sold’ and
(ii) relatively lower ‘cash operating expenses’:-
(figures are in ‘000 ₹)
X Ltd. Y Ltd.
Sales 16,000 9,500
Other Income 300 200
Total (A) 16,300 9,700
Cost of Goods Sold 11,520 6,500
Cash Operating Expenses 2,400 1,700
Total (B) 13,920 8,200
EBDIT [C = (A – B)] 2,380 1,500

Ratio
6. From the following calculate ROCE and Return on Net Worth: Share capital – ₹ 30,00,000; General
Reserve – ₹ 15,00,000; Balance of Statement of Profit & Loss – ₹ 5,00,000; 15% Long-term Loan – ₹
30,00,000; PBT – ₹ 17,50,000. Ignore tax.

7. From the following information of Mr. X, prepare a Trading A/c, Profit & Loss A/c for the year ended on
31.12.2024:-
Gross Profit Ratio 1
33 3 %
Net Profit 25% of Turnover
Stock Turnover Ratio 10 times
Current Liabilities/External Liabilities 1/4
Fixed Assets/Closing Capital 5/4
Closing Capital/External Liabilities 1/2
Fixed Assets/Current Assets 5/7
Fixed Assets ₹ 40,00,000
Closing stock is ₹ 4,40,000 which is 10% more than the opening stock.

8. Oven, Current Ratio = 2.8; Quick Ratio = 1.9; Stock Turnover (On Sales) = 3 Months and Sales = ₹
36,00,000. Find the value of current assets and current liabilities assuming no overdraft and prepayments.

9. From the following particulars, prepare a summarised Balance Sheet as at 31.03.2024:

Fixed assets to Net Worth = 0.80 : 1
Current Ratio = 3 : 1
Fixed Assets = ₹ 16,00,000
Reserve included in Proprietor’s Fund = 25%
Acid Test Ratio = 3 : 2
Cash at Bank= ₹ 30,000
Long-term Loan = ?
Bank Overdraft = Nil

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10. Assuming 360 days in a year, calculate the Average Collection Period from the following:-
a) Average Inventory = ₹ 1,80,000
b) Debtors = ₹ 1,20,000
c) Inventory Turnover = 6 Times
d) G.P. Ratio = 10%
e) Credit Sales to Total Sales = 20%

11. From the following information, prepare a Statement of Proprietor’s Fund showing as many details as
possible:-
a) G.P. Ratio = 25%
b) Current Ratio = 1.6
c) Liquid Ratio = 1.35
d) Stock Turnover (based on Cost of Goods Sold) Ratio = 9 times
e) Debtors Turnover = 146 days
f) Bank Overdraft = Nil
g) Fixed Assets to Net Worth = 0.90
h) G.P. = ₹ 3,75,000
i) Long-term Loan to Current Liabilities = 0.40
j) Reserve to Share Capital = 0.25

Accounting Standards
12. A Ltd. purchased equipment for ₹ 40,00,000. Its useful life and the cost of its components are estimated
as follows:-
Components Estimated Cost Useful Life
Motor of the Equipment ₹ 30,00,090 50,000 Hours
Body ₹ 10,00,000 5 Years
A Ltd. charges component wise depreciation as per Ind-AS 16, for the year 2023-34.
Calculate the amount of depreciation to be charged. During the year, the motor was used for 4,200 hours.
(Assuming the estimated scrap value of components is NIL)

13. Piya Ltd. purchased a machine during the year 2023-24 the details of which are as below:-
Purchase price of Plant & Machinery (before discount) ₹ 15,00,000
Trade discount 20% of purchase price
Cash discount ₹ 1,00,000
GST paid (Input Tax Credit is availed) ₹ 1,44,000
Installation and delivery charges ₹ 50,000
Site preparation cost for the machinery ₹ 30,000
Testing cost ₹ 10,000
Present value of initial estimated dismantling cost of machine ₹ 15,000
Calculate the amount to be capitalised for Plant and Machinery as per Ind-AS 16.

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14. Compute Basic Earning Per Share from the following information for the year ended on 31.03.2024:-
a) Profit from continuing operation before tax – ₹ 13,00,000
b) Tax Rate – 30%
c) 1,000 6% Cumulative Preference Shares of ₹ 100 each – ₹ 1,00,000
d) No. of equity shares outstanding on 01.04.2023 – 1,00,000
e) No. of equity shares issued for cash fully paid up on 01.08.2023 – 20,000
f) Bonus shares issued in October 2023 in the ratio of 1 share for every 10 shares held on 01.04.2023
g) Buy back of ordinary shares on 01.01.2024 – 10,000

15. From the following information, compute weighted average number of equity shares outstanding at the
end of the year 31.03.2024 and Basic EPS as per Ind-AS 33:-
Equity shares opening balance on 01.04.2023 @ ₹ 10 each 80,000 shares
Public issue on 01.07.2023 @ ₹ 10 each 30,000 shares
Further public issue on 01.01.2024 @ ₹ 10 each 10,000 shares
Earnings attributable for equity shareholders for 2023-24 ₹ 5,00,000

16. Following particulars are made available to you:-

• EBIT for the year 2023-24 ₹ 92,000 and Rate of Income Tax 25%.
• 12% Debentures ₹ 1,00,000
• Share Capital on 31.03.2024:
10% Cumulative Preference Shares of ₹ 80,000 and
10,000 Equity Shares of ₹ 10 each fully paid
Calculate EPS when –
a) No equity shares were issued during the year
b) 2,400 equity shares were issued on 30.11.2023.

Holding Company
17. The statement of assets and liabilities of H Ltd. and its subsidiary S Ltd. as on 31.03.2024 stood as
follows:-
H Ltd. (₹) S Ltd. (₹)
I. Equity and Liabilities:
1. Shareholders Fund:
a) Equity Shares of ₹ 10 fully paid 10,00,000 4,00,000
b) Reserves and Surplus:-
General Reserve 4,80,000 2,00,000
Profit and Loss Balance (01.04.2023) 1,4,400 1,64,000
2. Current Liabilities:
a) Short term borrowings 2,00,000 --
b) Bills Payable -- 26,000
c) Sundry Creditors 1,39,600 40,000
Total 19,34,000 8,30,000
II. Assets:

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1. Non-current Assets:
(a) Fixed Assets:-
Land and Buildings 3,60,000 3,80,000
Plant and Machinery 4,80,000 2,70,000
(b) Non-Current Investment:
Investment in equity shares of S Ltd. 6,45,500 --
Other Non-Current Investment 74,500 --
2. Current Assets:
Inventory 2,20,000 80,000
Sundry Debtors 96,000 84,000
Bills Receivables 27,600 --
Cash and Cash Equivalents 30,400 16,000
Total 19,34,000 8,30,000
The following information are also available:-
a) H Ltd. acquired 32,000 equity shares of ₹ 10 each in S Ltd. on October 1, 2023 for ₹ 6,45,500.
b) The statement of Profit and Loss of S Ltd. showed a profit of ₹ 60,000 on 01.04.2023 out of which a
dividend of 10% was paid on November 1, 2023 for the year 2023-24.
c) The Plant and Machinery of S Ltd. which stood at ₹ 3,00,000 on 01.04.2023 was considered worth ₹
3,60,000 on the date of acquisition by H Ltd.
d) Sundry debtors of S Ltd. include loan to H Ltd. ₹ 14,000. H Ltd. remitted a cheque of ₹ 14,000 to S
Ltd. on 27th March, 2024 for repayment of loan, which was received by S Ltd. in April 2024.
Prepare a Consolidated Balance Sheet of H Ltd. and its subsidiary S Ltd. as on 31st March, 2024.

18. The Standalone Balance Sheet of H Ltd. and S Ltd. as at 31.03.2024 are given below:-
H Ltd. (₹) S Ltd. (₹)
I. Equity and Liabilities:
1. Shareholders Fund:
a) Equity Shares of ₹ 10 fully paid 2,80,000 1,00,000
b) Reserves and Surplus:-
General Reserve 40,000 30,000
Balance of Profit & Loss (Cr.) 60,00 35,000
2. Current Liabilities:
a) Bills Payable 10,000 6,000
b) Sundry Creditors 50,000 20,000
Total 4,40,000 1,91,000
II. Assets:
1. Non-current Assets:
(a) Fixed Assets:-
Land and Buildings 1,50,000 60,000
Plant and Machinery 1,20,000 90,000
(b) Non-Current Investment:
6,000 shares of S Ltd. 75,000 --
2. Current Assets:

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Inventory 60,000 11,000
Sundry Debtors 15,000 20,000
Cash and Cash Equivalents 20,000 10,000
Total 4,40,000 1,91,000
Additional Information:
a) H Ltd. acquired the shares of S Ltd. on 01.04.2023. S Ltd. had the following balances on the date of
acquisition:-
(i) Profit & Loss Account ₹ 25,000; (ii) General Reserve ₹ 20,000
b) On 15.08.2023, S Ltd. paid dividend for the year 2022-23 @ 10% and H Ltd. credited its share of
dividend to P&L A/c.
c) S Ltd. sold goods of ₹ 25,000 to H Ltd. at a profit of 20% on sales. The goods are still lying unsold.
d) Sundry creditors of H Ltd. include ₹ 10,000 payable to S Ltd.
Prepare Consolidated Balance Sheet as on 31.03.2024.

19. The statement of assets and liabilities of H Ltd. and its subsidiary S Ltd. as on 31.03.2024 are as follows:-
H Ltd. (₹) S Ltd. (₹)
Equity and Liabilities:-
Equity Share Capital (₹10) 10,00,000 3,00,000
General Reserve 4,00,000 2,60,000
Balance of Profit & Loss (Cr.) 5,00,000 2,00,000
Trade Payables (Creditors) 5,60,000 3,40,000
24,60,000 11,00,000
Assets:-
Land & Building 10,00,000 4,40,000
Plant & Machinery 4,00,000 2,00,000
Investment in S Ltd. 3,00,000 --
Inventories 3,80,000 2,80,000
Trade Receivables (Debtors) 3,20,000 1,60,000
Cash and Cash Equivalents 60,000 20,000
24,60,000 11,00,000
The following information is also available:-
a) H Ltd. Acquired 24,000 equity shares of S Ltd. on 01.07.2023 at a cost of ₹ 3,00,000 and immediately
after acquisition H Ltd. received dividend on equity shares @ 20% for the year 2022-23. H Ltd.
credited its share of dividend to Profit & Loss A/c.
b) On 01.04.2023, the balance of General Reserve was ₹ 1,40,000 and the balance of Profit & Loss was
₹ 80,000.
c) Debtors of H Ltd. include ₹ 40,000 for goods sold to S Ltd. at cost plus 25%, half of goods are still in
stock.
Prepare Consolidated Balance Sheet of H Ltd. with its subsidiary S Ltd. as on 31.03.2024.

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Cash Flow Statement
20. From the following Summary Cash A/c of A Ltd. prepare Cash Flow Statement for the year ended
31.03.2024 in accordance with AS-3 (Revised) using the direct method. The company does not have any
equivalents.
Summary Cash A/c for the year ended 31.03.2024
Particulars ₹ ‘000 Particulars ₹ ‘000
Balance (01.04.2023) 50 Payment to Suppliers 2,000
Issue of equity shares 200 Purchase of Computers 200
Issue of Preference Shares 100 Overhead Expenses 200
Receipts from customers 2,800 Wages and Salaries 100
Sale of furniture 100 Taxation 250
Dividend 50
Repayment of Bank Loan 300
Balance (31.03.2024) 150
3,250 3,250

21. The following are the summarised Balance Sheet of X Ltd. as on 31.03.2023 and 31.03.2024:-
Particulars Note No. 31.03.2023 31.03.2024
I. Equity and Liabilities:
1) Shareholders’ Fund:
a) Share Capital 9,20,000 9,20,000
b) Reserve and Surplus 1 3,04,000 3,32,000
2) Non-current Liabilities:
Long-term Borrowings (8% Debentures) 3,60,000 2,80,000
3) Current Liabilities:
a) Trade Payables (Creditors) 4,12,000 3,84,000
b) Other Current Liabilities (O/s Expenses) 52,000 48,000
20,48,000 19,64,000
II. Assets:
1) Non-current Assets:
a) Fixed Assets – Tangible Assets 2 6,48,000 7,04,000
b) Non-current Investments (Investments) 4,40,000 2,96,000
2) Current Assets:
a) Inventories (Stock) 3,28,000 4,24,000
b) Trade Receivables (Debtors) 2,68,000 1,72,000
c) Cash and Cash Equivalents (Cash at Bank) 3,60,000 3,60,000
d) Other Current Assets (Prepaid Expenses) 4,000 8,000
20,48,000 19,64,000
Notes to Accounts:-
1) Reserve and Surplus:-
a) Reserve 2,40,000 2,40,000
b) Balance in the Statement of Profit & Loss 64,000 92,000

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3,04,000 3,32,000
2) Fixed Assets – Tangible Assets:
a) Land and Buildings 6,00,000 6,00,000
b) Machinery 2,08,000 2,80,000
Less:- Depreciation (Accumulated) 1,60,000 1,76,000
48,000 1,04,000
Total 6,48,000 7,04,000
Additional Information:
a) 10% dividend was paid during 2023-24.
b) Machinery for ₹ 1,20,000 was purchased and old machinery costing ₹ 48,000 (accumulated
depreciation ₹ 24,000) was sold for ₹ 16,000.
c) ₹ 80,000, 8% Debentures were redeemed by purchase from open market at ₹ 96 for a debenture of ₹
100 at the beginning of the year.
d) Investments worth ₹ 1,44,000 were sold at book value.
e) Bad debts written off during the year ₹ 20,000.
Prepare a statement of Cash Flow as per AS-3 for the year ended on 31.03.2024.

22. Classify the following transactions according to ‘Operating’, ‘Investing’ and ‘Financing’ activities:-
a) Profit on sale of fixed assets ₹ 25,000.
b) 5,000 Preference Shares of ₹ 100 each were redeemed.
c) Payment of Income Tax ₹ 60,000.
d) Dividend paid ₹ 1,00,000 on equity shares
e) Dividend received on shares ₹ 12,000.

Fund Flow Statement

23. Following are the liabilities and assets of Snow Ltd. as on 31.03.2023 and 31.03.2024:-
31.03.2023 31.03.2024
(₹) (₹)
I. Equity and Liabilities:
1. Shareholders’ Fund:
a) Share Capital:
Equity share of ₹ 10 each fully paid 3,00,000 5,00,000
9% Preference Shares of ₹ 10 each fully paid 2,00,000 3,00,000
b) Reserves and Surplus:
Securities Premium 40,000 70,000
Revaluation Reserve (on Land) -- 80,000
General Reserve 1,20,000 1,80,000
Profit and Loss Balance 2,30,000 3,90,000
2. Non-current Liabilities:
8% Debentures 2,00,000 --
3. Current Liabilities:
Trade Payables 90,000 90,000

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Provision for Tax 60,000 90,000
Total 12,40,000 17,00,000
II. Assets:
1. Non-current Assets:
a. Fixed Assets: Tangible Land 5,00,000 5,80,000
Other Fixed Assets 3,50,000 4,80,000
b. Non-current Investment 70,000 1,10,000
2. Current Assets:
Inventory 90,000 70,000
Trade Receivables 1,40,000 3,30,000
Cash and Cash Equivalents 90,000 1,30,000
Total 12,40,000 17,00,000
Following further particulars for the year 2023-24 are also given:
a) Interim Dividend on equity shares ₹ 50,000 and Preference dividend ₹ 18,000 were paid during
the year. Dividend distribution tax paid during the year ₹ 10,000.
b) Debentures were redeemed at 10% premium, premium on redemption charged to Profit & Loss
for the year. Debenture interest ₹ 12,000 were also paid during the year.
c) The company sold one fixed asset for ₹ 24,000 (W.D.V. ₹ 35,000). Fixed assets of ₹ 2,00,000 were
acquired by issue of 8,000 equity shares at 25% premium and balance by issue of preference shares
at par. Other equity shares were issued for cash during the year at a premium.
d) Interest on investment received ₹ 8,000. Investment having book value ₹ 20,000 were taken over
by a creditor against ₹ 20,000 due to him.
e) Income tax paid during the year ₹ 68,000.
You are required to prepare the Fund Flow Statement of Snow Ltd. for the year ended 31.03.2024.

24. Prepare a Fund Flow Statement of X Ltd. from the following statement of assets and liabilities after taking
into consideration the additional information:
Particulars 31.03.2023 (₹) 31.03.2024 (₹)
I. Equity and Liabilities
Share Capital (₹10) 12,00,000 16,00,000
Capital Reserve -- 40,000
Balance in Statement of P&L 8,40,000 10,60,000
Debentures 8,00,000 5,60,000
Sundry Creditors 4,80,000 5,36,000
Provision for Tax 4,80,000 4,84,000
38,00,000 42,80,000
II. Assets
Property, Plant and Equipment 22,80,000 26,40,000
Trade Investment 4,00,000 3,20,000
Current Assets including Inventories 11,20,000 13,20,000
38,00,000 42,80,000
Additional Information:

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a) Sold one machine for ₹ 1,00,000 the cost of the machine was ₹ 2,56,000 and the depreciation
provided for it amounted to ₹ 1,40,000.
b) Provided ₹ 3,80,000 on depreciation.
c) Redeemed 30% debentures @ ₹ 103.
d) Sold trade investment at profit and the profit was credited to capital reserve.
e) Decided to value the stock at cost, whereas the previous practice was to value the stock at cost less
10%. The stock according to books on 31.03.2023 was ₹ 2,16,000; stock on 31.03.2024 ₹ 3,00,000
was correctly valued at cost.

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