Question

4. From the following information pertaining to M/s ABC & Co. Ltd., prepare its trading, profit & Loss A/c for the year ending 31st March 2012 and summarized Balance Sheet as on that date.
Current ratio - 2.5
Quick Ratio - 1.3
Proprietary ratio - 0.06
Gross Profit to sales - 10%
Debtors Velocity - 40 days
Sales - 2,73,000
Working capital - 1,20,000
Bank overdraft - 2,15,000
Share Capital - 2,50,000
Closing Stock is 10% more than opening stock
Net profit 10% of proprietary fund.

Answer 1

Answer on Question #39641- Economics- Finance

Here we can see the table with some formulae.

Using these formulae we can calculate:

So, we can build the balance sheet.

Balance

Fixed assets 600000

Current assets and inventory 500000

**Total Assets:** 1100000

Current liabilities 200000

Capital 480000

Long-term liabilities and other 420000