3. What do you mean by financial statement analysis? What are its purposes?
2. State the nature and importance of final accounts and balance sheet.
3. What is the purpose of Cost Accounting? Classify each of the following costs using
the following classes: a) Direct Material b) Direct labor c) Manufacturing
Overheads d) Non-manufacturing expenses
4. From the following information relating to M/S Good Faith Co., prepare a fund flow
statement for year ending 31-3-2005.
6. The following is the summary of ledger balances of Anand Associates for the year
ending 31st December, 2006. Prepare Trading and Profit and Loss Account. Also prepare
Balance Sheet on that date after considering the following adjustments
a. Closing stock was valued at Rs. 15,700
b. Write off Rs.500 as bad and create RBD on debtors at 5%
c. Depreciate agent’s sample by 33 1/3% and advertising fund by 25%
d. Charge Manager’s commission at 5% on net profits, after charging his commission.
LEDGER BALANCES OF ANAND
Rs Rs
Capital 20,500 Purchase Returns 2,000
Creditors 15,000 Sales 1,44,800
Outstanding expenses 3,400 Provision for bad debts 300
Rent received 300 Advertisement Fund 4,000
Plant and Machinery 10,000 Power 4,000
Goodwill 2,500 Depreciation of machinery 500
Agents Sample 1,350 Salary 17,200
Opening Stock 16,000 Discount received 900
Debtors 7,300 General Expenses 4,100
Cash at bank 1,000 Prepaid expenses 200
Cash in hand 55 Salary to agent 4,550
Drawings 2,500 Rent and insurance 9,950
Purchases 85,500 Discount allowed 2,500
Carriage inwards 750 Sales return 300
Wages 11,500 Commission to agents 1,445