(Regular) FIVE questions in al, 2) Ansners without necessary computations will not be accepted iTS: Folewing isthe tral balance of TJ CORPORATION at June 30, 2016 (Authored capital is Rs.2000,000 divided ito "200,000 ordinary shares) Paficulars Debits. | Credit Rs, | Wlerchangise Inventory Guy 72015) 115,200 = [Gash in hand 148,800 = Cash at bank 82,600. = ‘Accounts recsivable "290,000 3 Purchases, = 813,500, a Sales retur 13,600, = Higaes expense 769.600 2 ‘Advertsing expense, ‘94,600 = ‘Carriage on sales 164,000. ed ‘Carriage on purchases: 40,800. = ulling, 1640000, = Cand) [200,000 = Machinery 400,000, = ‘Salaries expense 300,000. ‘General expense. 60,000, = Preliminary expense: 12,000. a Insurance expense = 704,800 = ‘Sales =| 1.975600 Purchase returns, = 10,000, Paid-up Shares Capital = | 7,080,000, ‘Accounts payable = 126,000, 10% Bonds payable “100,000. Rental income 180,000, ‘65,000. ]Rs.3.546 600 Rs.3.546,600 ‘Closing Inventory is valued at Rs. 136,000. ic & Building are to be depreciated @ 10% (i). Salaries for the month of June, 2016 amounting to Rs.30,000 are unpaid, (%) Insurance is paid in advance to the extent of Rs.13,000. (v)_ Rent receivable Rs.20,000. (“) Company's directors deciared Rs.200,000 Cash Dividend and Reserved Rs. 100,000 for contingencies. () Prepare income statement for the year ended June 30, 2016. B.Comit 184 Unsolved PapersAhmer's (i). Prepare statement of retained eamings for the year ended June 30, 2016. i) Prepare classified batance sheet as on June 30, 2016 1.2. INSTALLMENT SALES: FILRISH COMPANY Karachi deals in home appliances, on regular ‘and installment sales basis. During 2016 company sold the iowing items on installment basis: Years - Unsolved Papers [Baie ot | Rem Sales «| Cost | Down | No. of ‘Sale, Price Payment _| instalments [Feb | Retrgerator |. 60,000 | Raa5.000 | 0% 3 i Tay 2" [Aa | Raa8.000 | Ra 30,000 | Rs 5000 0 16." | Conditioner S| Oe ee Ne 16 ‘Al the installments were collected at the start of each month (newt to ‘sales month). The company’s financial year ends on December 31” ach yea. fompute (@)() Deferred Gross Profit and Gross Profit Rate for each item sold ‘Gi Amount per installment for each item. i) Gash from customers during 2016 only (iv) Realized gross profit during 2016, (b) Record RGP in General Journal Q.3. CASH FLOW STATEMENT The Accounting records of ASIF LTD. Shews the following balance at the end of year 2016 and 2015: [Debit Balances: Dec. 31° 2016 | Dee. 312015 ‘Cash Rs 24000 _-Rs 200,000. ‘Accounts Receivable 300,000 280,000 | Merchandise Inventony 264,000 270,000, * [Equpment 20,000, 80,000 Pateris 40,000 50,000 Total 5948.00. Rs.880,000 a Dee. 312016 | Dee. 31" 2015 | ‘Acoumulated cep. Equipment R5.32,000 | Rs.24,000 | Accounts Payable 48,000 80,000 [Notes payable (short term) 16,000. 20,000 Bonds payable 200,000 240,000 ‘Share Capital (Paid up) 580,000 480,000 Retained Earnings 72,000. 56,000 Total 5.048.000 | Fs.680,000 ] (Equipment that cost Rs.20,000 was sold during the year for 'Rs.8,000. The book value at the ime of sale was Rs.8,000 (i)_ Gash dividend of Rs 80,000 were declared and paid. ‘Required: Prepare Cash Flow Statement for the year ended December ‘31, 2016 showing operating, investing and financing activities. 185 Unsolved PapersAhmer's - @Q) Years - Unsolved P Q4, FINANCIAL RATIO ANALYSIS Following are the financial statement of TJ. LTD. Karachi for the year ended June 30, 2016: AS ON JUNE 30, 2018 Eas Re] Assets co ‘Share holder's equity ‘Cument assets ‘Granary share captal Cash 400,000 s.10 p09) 1,000,000 Aecounsrecevable 00.000 ‘Shares premum 300,000 | inventory 100,000 Rened earings 700,000 | Tota eurent assets 1.800.000 Total Share holders ‘Non-current assets, ecuty 2,000,000 | Propery part ‘Liabilities, ‘equipment 1,800,000 ‘Current Liabilities ‘Accumulated depreciation | (00,0000) ‘Accounts payable 450,000 | Net noncument assets | “7,400,000, Ureamec income 450,000 ‘ota curest tainies | 600,000, Longerm Lisbties i 884 Bonde payabie. 600,000 Tata Equities 3,200,000 | Toa Asai Sapo TILT. 2 INCONE STATEMENT FOR THE YEAR ENDED JUNE 30, 2016 Sales. "Rs.5,000,000. , ‘Cost of goods sold 2 ‘Gross prof (40% of sales) z expenses, 2 Eaming bofore interest & fae 000,000, Interest expense. 20,000 Eaming before tax 2 Income taxes 760,000 ‘Net profit ater tax 750,000 ‘Other information: Markel price par share RS. 15. Use the above balances 28 average also. ‘Required: Calculate the ratio: () Current ratio (i Quick ratio (i) Inventory turnover (iv) Receivable turnover (v) Debt ratio. (Wi) Net profit percentage (vi) Return on Assets (vii) Return on equity (x) Eaming per share) Price earning ratio as. “The balance cheet of HILAL&CO. Ltd. On June 20, 2016 was as under: Assets Equities ‘Cash Regop00| [Accounts payable Fs 50000 “Merchandise 110,000 | [All for depreciation 120.000] lnventory I plants assets ‘Accounts receivable | 1580000] [3% ure | 200860" LU payable ‘B.Com 186 Unsolved Papers