Question 4 The following is the Balance Sheet of a concern on 31st March, 2010: Capital...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 4 The following is the Balance Sheet of a concern on 31st March, 2010: Capital Creditors (Trade) Profit & Loss A/c 10,00,000 Fixed Assets 1,40,000 Stock 4,00,000 3,00,000 1,50,000 3,50,000 12,00,000 12,00,000 The management estimates the purchases and sales for the year ended 31st March, 2011 as under: upto 28.2.2011 60,000 Debtors Cash & Bank ₹ March 2011 ₹ Purchases Sales It was decided to invest 1,00,000 in purchases of fixed assets, which are depreciated @ 10% on cost. 14,10,000 19,20,000 1,10,000 2,00,000 The time lag for payment to Trade Creditors for purchase and receipt from Sales is one month. The business earns a gross profit of 30% on turnover. The expenses against gross profit amount to 10% of the turnover. The amount of depreciation is not included in these expenses. Draft a Balance Sheet as at 31st March, 2011 assuming that creditors are all Trade Creditors for purchases and debtors for sales and there is no other item of current assets and liabilities apart from stock and cash and bank balances. Question 4 The following is the Balance Sheet of a concern on 31st March, 2010: Capital Creditors (Trade) Profit & Loss A/c 10,00,000 Fixed Assets 1,40,000 Stock 4,00,000 3,00,000 1,50,000 3,50,000 12,00,000 12,00,000 The management estimates the purchases and sales for the year ended 31st March, 2011 as under: upto 28.2.2011 60,000 Debtors Cash & Bank ₹ March 2011 ₹ Purchases Sales It was decided to invest 1,00,000 in purchases of fixed assets, which are depreciated @ 10% on cost. 14,10,000 19,20,000 1,10,000 2,00,000 The time lag for payment to Trade Creditors for purchase and receipt from Sales is one month. The business earns a gross profit of 30% on turnover. The expenses against gross profit amount to 10% of the turnover. The amount of depreciation is not included in these expenses. Draft a Balance Sheet as at 31st March, 2011 assuming that creditors are all Trade Creditors for purchases and debtors for sales and there is no other item of current assets and liabilities apart from stock and cash and bank balances.
Expert Answer:
Related Book For
Financial Institutions Management A Risk Management Approach
ISBN: 978-0071051590
8th edition
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
Posted Date:
Students also viewed these accounting questions
-
The following is the balance sheet of a DI (in millions): The asset-liability management committee has estimated that the loans, whose average interest rate is 6 percent and whose average life is...
-
The following is the balance sheet of Ingram Industries: Required Indicate your criticisms of the balance sheet and briefly explain the proper treatment of any itemcriticized. INGRAM INDUSTRIES...
-
The following is the balance sheet of Korver Supply Company at December 31, 2010. The note payable is dated June 30, 2010 and is due on June 30, 2012. Interest at 6% is payable annually on June 30....
-
Provide a brief discussion of database connection using the JDBC API, which includes: a. Two popular methods used to establish a connection b. Operational procedure to establish a connection c. How...
-
1. Based on the data above, what is ASA Robotics, Inc. standard deviation of returns? 1. 3.52 2. 6.16 3. 4.08 4. 4.57 2. If investors expect the same realized returns of the 5 years of data given to...
-
Carla plans to create a trust and transfer to it oil and gas properties producing royalty income. She will transfer no other properties. The sole income beneficiary of the trust will be Carlas son,...
-
El Conquistador, Inc., finances operations with both bonds and stock. Suppose El Conquistador issued \(\$ 500,000\) of 10 -year, \(8 \%\) bonds payable under various market conditions. Match each...
-
Regional Power owns 25 small power generating plants. It has contracted with Genco Services to overhaul the power turbines of each of the plants. The number of hours that Genco billed Regional to...
-
There are two factors that affect stock returns, unexpected inflation (factor 1) and unexpected changes in production (factor 2). Over the next month, inflation is expected to be 0.2%, and production...
-
How do contemporary theories like the Five Factor Model reconcile with more traditional approaches such as Freudian psychoanalysis? What insights do these modern theories provide into the stability...
-
A copper wire has a diameter of \(0.20 \mathrm{~mm}\) and is \(\ell_{\text {wirc }}=10 \mathrm{~m}\) long. (a) What is the resistance of the wire? (b) The wire is cut into \(N\) identical pieces, and...
-
This problem is based on the information about the Murphy County General Fund budgeted and actual transactions and events described in Problem 4-2. Required 1. Prepare a budgetary comparison...
-
Jacqueline divides her income between coffee and croissants (both of which are normal goods). An early frost in Brazil causes a large increase in the price of coffee in France. a. Show how this early...
-
A politician makes a speech which is critical of the governments immigration policy, saying that it is too loose and encourages too many people to enter the country and take jobs away from local...
-
Request an interview with a health care executive and explore his perceptions of risk and disaster preparedness for his organization. Ask to see the health care organizations all hazards plan. Based...
-
The filament in a light bulb has a diameter of 0.050 mm and an emissivity of 1.0. The temperature of the filament is 3000C. What should be the length of the filament so it will radiate 60 W of power?...
-
Explain the term global capital markets. This chapter primarily discusses global equity markets. What other types of financial instruments are traded in these markets? How important are global...
-
How does the price on a GNMA bond relate to the yield on a GNMA option from the perspective of the investor? What is the option-adjusted spread (OAS)?
-
Why is access to the discount window of the Fed less of a deterrent to bank runs than deposit insurance?
-
How does a policy of matching the maturities of assets and liabilities work (a) to minimize interest rate risk and (b) against the asset-transformation function of FIs?
-
Four employees in an office have annual salaries of $30,000, $35,000, $45,000, and $70,000. a. Compute the mean salary. b. Compute the median salary. c. Each employee gets a $1000 raise. Compute the...
-
Consider the following data set: a. Show that the mean and median are both equal to 5. b. Suppose that a value of 26 is added to this data set. Which is affected more, the mean or the median? c....
-
Consider the following data set: a. Compute the mean and median. b. Based on the mean and median, would you expect the data set to be skewed to the left, skewed to the right, or approximately...
Study smarter with the SolutionInn App