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Prakash (Querist)

15 April 2018 Question:-
X limited commenced operations on 01 .04.2013
Following are some of the details prepared by accountant

Proposed Equity Dividend 40,000
Preference Dividend paid on preference capital at 15 % 15,000
Interest paid on loan borrowed 20,000
Selling & Distribution Expenses 30,000
Gross Profit Ratio 30% on sales
Depreciation 5% on Sales
Fixed Assets turnover ratio (based on Net Fixed Assets) 2 Times
Interest Coverage Ratio 6 Times
Debt Service Coverage ratio 2.75 times
Debtor Turnover Ratio 4 Times
Creditors turnover ratio (purchase and trading expenses) 6 times
Stock Turnover Ratio 5 times

Notes:
A Equity Dividend is proposed at 20 % of equity capital
B Depreciation does not form part of cost of Goods sold
C The loan borrowed on 01.10.2013. The first installment including interest was paid on 31.03.14
The loan was to be paid in ten semiannual installments.
D Income Tax @ 30%

You are required to prepare for the year ended 31.03.2014
a) The profit & loss account
b) Balance Sheet
c) Cash Flow Statement.

Nikhil Kaushik

Nikhil Kaushik (Expert)

17 April 2018 common dude. Solve these school level questions on your own and come here if you have any doubts. Don't outsource your practice to others!

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