VIJAY PATIL SCHOOL OF MANAGEMENT

BACHELOR OF BUSINESS ADMINISTRATION

(SEMESTER V)

FINANCIAL REPORTING
(ASSIGNMENT)

1. The John Equipment Company estimates its carrying cost at 15% and its ordering cost
at Rs. 9 per order. The estimated annual requirement is 48,000 units at a price of Rs. 4
per unit. Calculate EOQ.

2. A manufacturing company places a semi-annual order of 24,000 units at a price of Rs.

20 per unit. Its carrying cost is 15% and the order cost is Rs. 12 per order.
Required:
What is the most economical order quantity?
How many orders need to be placed?

3. From the following particulars , prepare stores ledger account using FIFO Method of
pricing issues.

January 2024
2 purchased 400 units @ Rs. 40 per unit.
4 purchased 500 units @ Rs. 50 per unit
6 Issued 200 units
7 purchased 600 units @ Rs. 60 per unit
10 Issued 400 units
15 Issued 100 units
18 Issued 200 units
24 purchased 450 units @ Rs 55 per unit
31 Issued 250 units.

4. Prepare the stores ledger account based on the weighted average method of pricing
issues from the following information:

July 2024.

2 Opening balance: 50 units @ Rs. 3 per unit.

3 Issued to production : 2 units
6 Purchased 48 units @ Rs. 4 per unit
10 Issued out 20 units to production
17 Purchased 76 units @ Rs. 3 per unit
22 Received back into stores 19 units out of 20 units issued on 10 July 2024
25 Issued to production: 10 units.
.
5. The purchase manager of an organisation has collected the following data:

PARTICULARS Rs.
Interest on locked up capital 20%
Order processing cost for each order 100 Rs.
Inspection cost per lot 50 Rs.
Follow up cost for each order 80 Rs.
Pilferage which holding inventory 5%
Other holding cost 15%
Other procurement cost for each order 170 Rs.
Annual demand 1,000 units
Cost per item 10 Rs.

What should be EOQ?

6. From the following details find out closing stock of Bharat Industrial Ltd. as per weighted
average method.
Date Purchases Sales Price per unit
1-11-2024 Balance 40 - 14
2-11-24 30 - 15
4-11-24 20 - 15
5-11-24 - 40 18.50
10-11-24 - 10 19
17-11-24 30 - 16
20-11-24 - 25 20
28-11-24 50 - 13
30-11-24 - 40 16

On 29-11-2024, two units were found damaged and had to be discarded

7. From the following data , Calculate current ratio , proprietary ratio , capital gearing ratio,
operating ratio, return on proprietors funds , Net profit ratio.
Balance sheet

liabilities Rs. Assets Rs.

Share capital 80,000 Fixed assets 75,000
reserves 20,000 current assets 1,00,000
10 % debentures 25,000
current liabilities 50,000
1,75,000 1,75,000
 Revenue statement

Sales 2,00,000
less: cost of sales 1,10,000
Gross profit 90,000

Less:
operating expenses 60,000

Net profit before tax 30,000

Less: tax 15,000
profit after tax 15,000
Less: dividend 8,000
retained earnings 7,000

8. Trading and profit /Loss Account

Particulars Rs. Particulars Rs.
To opening stock 1,60,000 By sales 15,00,000
To purchases 78,000 By closing stock 60,000
To wages 30,000 By commission 24,000
To dep on factory building 8,000
To electricity expenses 20,000
To rent 44,000
To exhibition expenses 14,000
To interest on debentures 24,000
To loss on sale of investment 60,000
To tax 40,000
To Net profit 11,06,000
---------- -----------
15,84,000 15,84,000

Calculate:
1. Gross profit ratio
2. Net profit ratio
3. Operating profit ratio
4. Operating ratio
5. Stock turnover ratio
6. Interest coverage ratio
9. .ABC Ltd. has the following accounts receivable as of 30th September 2024:
Debtor Total Amount (₹) Invoice Date
Debtor A ₹45,000 15th September 2024
Debtor B ₹60,000 25th August 2024
Debtor C ₹80,000 10th July 2024
Debtor D ₹30,000 15th June 2024
Debtor E ₹50,000 1st May 2024
Debtor F ₹25,000 10th March 2024
Create a debtors aging schedule as of 30 September 2024, categorizing the amounts into the
following periods: 0-30 days, 31-60 days, 61-90 days, and over 90 days.

10. A company has the following accounts receivable aging and provision matrix .Calculate
the total provision for doubtful debts (credit losses) .

Age of Receivables Receivables Amount ($) Default Probability (%)

0-30 days Rs. 60,000 1%

31-60 days Rs. 70,000 5%

61-90 days Rs. 50,000 10%

91-120 days Rs. 20,000 25%

Over 120 days Rs. 7,000 50%

11. From the following details relating to the Accounts of Grow More Ltd. , Prepare cash
flow statement.

Balance sheet
Liabilities 2024 2023 Assets 2024 2023
Share capital 10,00,000 8,00,000 Machinery 4,50,000 5,00,000
Reserves 2,00,000 1,50,000 Land 6,00,000 4,00,000
Profit and loss account 3,00,000 1,60,000 Investments 1,00,000 ---
Debentures 50,000 ------ Debtors 5,00,000 7,00,000
Sundry creditors 7,00,000 8,20,000 Stock 4,00,000 2,00,000
Cash on hand 2,00,000 2,00,000
22,50,000 20,00,000 22,50,000 20,00,000
Depreciation @ 10% was charged on the opening value of plant and machinery
12.From the following ledger balances of AKSHAR Co. Ltd., prepare a Balance
Sheet of the company as on 31st March 2025 as per Schedule III of the
Companies Act, 2013:

Particulars Rs. Particulars Rs.

Equity Share Capital 26,00,000 Advances to employees 1,50,000

Discount on issue of
General Reserves 30,000 12,500
debentures(unwritten off)
12% Debenture 4,00,000 Tools and equipment 3,75,000

Land & Buildings 15,54,970 Gratuity Fund 3,00,000

Goodwill 10,00,000 Debtors 1,38,520

Bank Overdraft 2,45,100 Cash at Bank 1,57,160

Proposed Dividend 82,000 Stores & Spares 1,77,800

Prepaid insurance 25,000 Profit & Loss A/c [Cr.] 21,490

Mutual Fund 1,68,000 Bills Receivable 44,600

Interest payable 32,400 Sundry Creditors 92,560

13.From the following information of Oceanic Traders Ltd., prepare the Statement of
Profit and Loss for the year ended 31st March 2025 as per Schedule III (Division I) of the
Companies Act, 2013.

Particulars Amount (₹)

Revenue from Operations (Sales) 85,00,000
Dividend Received 75,000
Opening Stock 5,00,000
Closing Stock 6,50,000
Purchases of Stock-in-Trade 50,00,000
Wages 4,20,000
Salaries 6,00,000
Rent – Office 1,50,000
Carriage Inward 90,000
Carriage Outward 60,000
Advertisement 1,25,000
Depreciation on Machinery 2,20,000
 Particulars Amount (₹)
Depreciation on Furniture 55,000
Interest on Loan 1,00,000
Bad Debts 35,000
Discount Allowed 40,000
Travelling Expenses 50,000
Insurance 45,000
Telephone Charges 25,000