Additional information:Sales during the year are Rs. 1,500,000.(ii) Gross profit margin is 40% of sales.(iii) Net profit before interest and tax is Rs. 165,000.(iv) Opening inventory is amounted to Rs. 50,000.(v) Tax bracket is 50%.Required: (10x 0.5)(i)(ii) Acid-test ratio(iii) Inventory turnover ratio(iv) Debt-Equity ratio(v) Net profit after tax(i)Current ratio(vi) Fixed assets turnover ratio(vii) Return on shareholders' equity(viii) Return on equity shareholders' equity(ix) Capital employed turnover ratio(x) Earnings per shareQ15. The annual requirement of an item is 18,000 units. Unit cost of material is Rs. 27 and ordering costis Rs. 150 per order. The inventory carrying cost is 20% of the average inventory per annum.Required:(i) Calculate economic order quantity and number of order per year.(2)(ii) Would you accept a 2% price discount on a minimum supply of quantity of 1,200 units?Compare the total cost in the both cases.(3)SECTION C: LONG ANSWER QUESTIONS (2 X 10 = 20 MARKS)Answer any TWO questions:Q16. What are the accounting concepts and conventions? Name them and explain any four accountingconcepts in detail.Q17. You are given the following trial balance for the year ended 31 December, 2019.апy(2 +4 + 9)stDebit BalanceRs.Credit BalanceRs.45,000 | Capital85,000| 10% Bank loan15,000 Sundry creditors95,000 | Bank Overdraft150,000 | Provision for doubtful debts20,000 | Purchase returns62,000 | Sales15,000 | Rent received30,000 Discount received2,000Opening stockPlant and Machinery90,00050,0007,47020,000Furniture and fixturesLand and BuildingPurchases4,0001,500363,00015,0002,500SalariesSundry debtorsManufacturing expensesManufacturing wagesCarriage inwardsCarriage outwardsAdministrative expensesSelling expenses2,10013,0007,5001,200Bad debtsDiscount allowed750Rent, rates and taxes1,620Prepaid insuranceDirector's fee1,8003,0003,500553,470Cash at Bank553,470Adjustments: Jestha 3.Sold to Bheri Electric Shop, Jajarkot:100 pieces of 10 watts LED bulbs @ Rs. 200 each200 pieces of 10 watts CFL bulbs @ Rs. 150 eachTrade discount 10%, packing & delivery charges Rs. 1,000 and VAT is charged @13%Jestha 12.Sold to Gaire Electric Shop, Dailekh:20 pieces of celling fans @ Rs. 2,000 each10 pieces of table fans @ Rs. 750 eachTrade discount 10%, packing and delivery charges Rs. 800 and VAT @ 13%Sold old chairs to Pratima Stores, Surkhet for Rs. 5,000 on credit.Sold to Praksh Electric Stores, Surkhet:20 pieces of electric iron @ Rs. 800 each10 pieces of electric thermos @ Rs. 2,000 eachJestha 18.Jestha 26.Trade discount 5% and VAT @ 13%Required:(2)(1)(2)a) Sales Bookb) Sales Accountc) Debtors AccountQ13. Enter the following transactions in the Cash Book with Cash and Bank Columns: –Jan.1 Cash in hand Rs. 8,000 and bank overdraft Rs. 10,500Jan. 4 Received a cheque from BhusanRs. 3,250Jan. 7 Deposited above cheque into bankJan. 15 Paid to Mohan by chequeRs. 3,500Jan. 18 Bhusan'scheque returned dishonouredJan. 20 Withdrew from Bank for office use Rs. 2,500Jan. 25 Cheque received from Sachin and endorsed it in favour of Kamal on 28th January Rs.1,200Jan. 30Income Tax paid by chequeRs. 550Jan. 30 Bank charges Rs. 100Jan. 30 Cash withdrawn from bank Rs. 3,000 for payment of salary of the office staff, which waspaid on next day(5)Q14. The Balance Sheet of Shree Company Ltd as on 31 March, 2020 is given below:Owners' Equity & LiabilitiesEquity Shares of Rs. 10 each10% Preference Shares of Rs. 10Rs.AssetsRs.300,000 Land & Building200,000 | Plant & Machinery20,000 Furniture & Fixtures50,000 Inventory100,000 | Sundry Debtors70,000 Prepaid Expenses10,000 Cash at Bank100,000250,00050,000100,000100,00020,000120,00010,000750,000eachReserve FundProfit and Loss A/c15% DebentureSundry CreditorsOutstanding ExpensesPreliminary Expenses750,000

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Q15. The annual requirement of an item is 18,000 units. Unit cost of material is Rs. 27 and ordering cost is Rs. 150 per order. The inventory carrying cost is 20% of the average inventory per annum. Required: (i) Calculate economic order quantity and number of order per year. (ii) Would Compare the total cost in the both cases. (2) you accept a 2% price discount on a minimum supply of quantity of 1,200 units? (3)

Q15. The annual requirement of an item is 18,000 units. Unit cost of material is Rs. 27 and ordering cost is Rs. 150 per order. The inventory carrying cost is 20% of the average inventory per annum. Required: (i) Calculate economic order quantity and number of order per year. (ii) Would Compare the total cost in the both cases. (2) you accept a 2% price discount on a minimum supply of quantity of 1,200 units? (3)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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