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Finance
Draw the Balance Sheet for the following information provided by Sarawath Ltd..
a. Current Ratio : 2.50
b. Liquidity Ratio : 1.50
c. Net Working Capital : Rs.300000
d. Stock Turnover Ratio : 6 times
e. Ratio of Gross Profit to Sales : 20%
f. Fixed Asset Turnover Ratio : 2 times
g. Average Debt collection period : 2 months
h. Fixed Assets to Net Worth : 0.80
i. Reserve and Surplus to Capital : 0.50
Hint: B/S total 1100000
a. Current Ratio : 2.50
b. Liquidity Ratio : 1.50
c. Net Working Capital : Rs.300000
d. Stock Turnover Ratio : 6 times
e. Ratio of Gross Profit to Sales : 20%
f. Fixed Asset Turnover Ratio : 2 times
g. Average Debt collection period : 2 months
h. Fixed Assets to Net Worth : 0.80
i. Reserve and Surplus to Capital : 0.50
Hint: B/S total 1100000
Finance
Q1. An accountant finds that the trial balance of his client did not tally and it showed an excess credit of Rs. 69.74. He transferred it to a suspense account and later discovered the following errors.
a) Rs. 44.37 paid to Anand has been credited to his account as Rs. 34.37.
b) A purchase of Rs. 145.50 has been posted as Rs. 154.50 to the purchases account.
c) An expenditure of Rs. 158 on repairs has been debited to the buildings account.
d) Rs. 80 was allowed by B as discount which has not been entered in the books.
e) A sum of Rs. 125.05 realised on the sale of old furniture has been posted to the sales account.
Give journal entries to rectify the errors and show the suspense account as it would appear after adjustments
Hint: Total of suspense a/c = 78.74
a) Rs. 44.37 paid to Anand has been credited to his account as Rs. 34.37.
b) A purchase of Rs. 145.50 has been posted as Rs. 154.50 to the purchases account.
c) An expenditure of Rs. 158 on repairs has been debited to the buildings account.
d) Rs. 80 was allowed by B as discount which has not been entered in the books.
e) A sum of Rs. 125.05 realised on the sale of old furniture has been posted to the sales account.
Give journal entries to rectify the errors and show the suspense account as it would appear after adjustments
Hint: Total of suspense a/c = 78.74
Finance
Explain the objectives of Statistical Average. What are the requisites of a good average?
Finance
An accountant finds that the trial balance of his client did not tally and it showed an excess credit
of Rs. 69.74. He transferred it to a suspense account and later discovered the following errors.
a) Rs. 44.37 paid to Anand has been credited to his account as Rs. 34.37.
b) A purchase of Rs. 145.50 has been posted as Rs. 154.50 to the purchases account.
c) An expenditure of Rs. 158 on repairs has been debited to the buildings account.
d) Rs. 80 was allowed by B as discount which has not been entered in the books.
e) A sum of Rs. 125.05 realised on the sale of old furniture has been posted to the sales
account.
Give journal entries to rectify the errors and show the suspense account as it would appear after
adjustments
of Rs. 69.74. He transferred it to a suspense account and later discovered the following errors.
a) Rs. 44.37 paid to Anand has been credited to his account as Rs. 34.37.
b) A purchase of Rs. 145.50 has been posted as Rs. 154.50 to the purchases account.
c) An expenditure of Rs. 158 on repairs has been debited to the buildings account.
d) Rs. 80 was allowed by B as discount which has not been entered in the books.
e) A sum of Rs. 125.05 realised on the sale of old furniture has been posted to the sales
account.
Give journal entries to rectify the errors and show the suspense account as it would appear after
adjustments
Finance
An accountant finds that the trial balance of his client did not tally and it showed an excess credit of Rs. 69.74. He transferred it to a suspense account and later discovered the following errors.
a) Rs. 44.37 paid to Anand has been credited to his account as Rs. 34.37.
b) A purchase of Rs. 145.50 has been posted as Rs. 154.50 to the purchases account.
c) An expenditure of Rs. 158 on repairs has been debited to the buildings account.
d) Rs. 80 was allowed by B as discount which has not been entered in the books.
e) A sum of Rs. 125.05 realised on the sale of old furniture has been posted to the sales account.
Give journal entries to rectify the errors and show the suspense account as it would appear after adjustments
a) Rs. 44.37 paid to Anand has been credited to his account as Rs. 34.37.
b) A purchase of Rs. 145.50 has been posted as Rs. 154.50 to the purchases account.
c) An expenditure of Rs. 158 on repairs has been debited to the buildings account.
d) Rs. 80 was allowed by B as discount which has not been entered in the books.
e) A sum of Rs. 125.05 realised on the sale of old furniture has been posted to the sales account.
Give journal entries to rectify the errors and show the suspense account as it would appear after adjustments
Finance
Two research worker classified some people in income groups on the basis of sampling studies. Their results are as follows:
Investigators Income groups Total
A 160 30 10 200
B 140 120 40 300
Total 300 150 50 500
Show that the sampling technique of at least one research worker is defective.
Investigators Income groups Total
A 160 30 10 200
B 140 120 40 300
Total 300 150 50 500
Show that the sampling technique of at least one research worker is defective.
Finance
What is the project’s payback period? immediate cash investment of Rs. 500,000 and Rs. 800,000 in year 1.The after-tax cash inflows will be Rs. 150,000, Rs. 200,000 and Rs. 250,000 for year 2, 3 and 4 respectively. Afterwards, there will be a cash inflow of Rs. 300,000 each year from year 5 to year 10.
Finance
2. Which of the following is not a bond protection against issuer default?
A. Debenture
B. Collateral
C. Sinking funds
D. Making newer debt junior
A. Debenture
B. Collateral
C. Sinking funds
D. Making newer debt junior
Finance
1. What is Moody’s/S&P lowest investment grade bond rating?
A. Aa/AA
B. A/A
C. Baa/BBB
D. Ba/BB
A. Aa/AA
B. A/A
C. Baa/BBB
D. Ba/BB
Finance
6. Rank the interest sensitivity of the following from most sensitive to an interest rate change to the least sensitive.
I. 10% coupon, 10-yr bond
II. 5% coupon, 10-yr bond
III. Zero coupon, 30-yr bond
A. I, II, III
B. II, III, I
C. III, I, II
D. III, II, I
I. 10% coupon, 10-yr bond
II. 5% coupon, 10-yr bond
III. Zero coupon, 30-yr bond
A. I, II, III
B. II, III, I
C. III, I, II
D. III, II, I
