The Balance Sheet of Major Limited as on 31st March, 2016 is as under: The company wishes
Question:
The Balance Sheet of Major Limited as on 31st March, 2016 is as under:
The company wishes to forecast Balance Sheet as on 31st March, 2017.
The following additional particulars are available:
(i) Fixed assets costing ₹ 1,00,000 have been installed on 1.4.2016 but the payment will be made on 31.3.2017.
(ii) The fixed asset turnover ratio on the basis of gross value of fixed assets would be 1.5.
(iii) The inventories turnover ratio would be 14.4 (calculated on the basis of average inventories).
(iv) The break-up of cost and profit would be as follows:
The profit is subject to interest and taxation at 50%.
(v) Debtors would be 1/9 of sales.
(vi) Creditors would be 1/5 of material consumed.
(vii) In March 2016, a dividend @ 10% on equity capital would be paid.
(viii)12% Debentures for ₹ 25,000 have been issued on 1.4.2016.
Prepare the forecast Balance Sheet as on 31st March, 2017 and show the following resultant ratios :
(a) Current Ratio;
(b) Fixed Assets / Networth Ratio;
(c) Debt Equity Ratio.
Step by Step Answer:
Corporate Accounting As Per The Companies Act 2013 Including Rules 2014 And 2015
ISBN: 9789352605569
2nd Edition
Authors: M Hanif, A Mukherjee