Principles and Practice of Accounting - May 2018

Shri Ganpath of Nagpur consigns 500 cases of goods costing < 1,500 each to Rawat of Jaipur. Shri Ganpath pays the following expenses in connection with the consignment : Particulars & Carriage 15,000 Freight _ 45,000 Loading Charges 15,000 (3) Shri Rawat sells 350 cases at ~ 2,100 per case and incurs the following expenses: Clearing charges 18,000 Warehousing and Storage charges 25,000 Packing and selling expenses 7,000 It is found that 50 cases were lost in transit and another…

3. The following are the balances extracted from the books of Shri Raghuram as on 31.03.2018, who carries on business under the name and style of M/s Raghuram and Associates., at Chennai : Particulars Debit (€) Credit (=) Capital A/e 14,11,400 Purchases 12,00,000 Purchase Returns 18,000 Sales 15,00,000 Sales Returns 24,000 Freight Inwards 62,000 Carriage Outwards 8,500 ‘Rent of Godown 55,000 Rates and Taxes 24,000 Salaries 72,000 Discount allowed 7,500 Discount received : 12,000 Drawings 20,000 Printing and Stationery 6,000…

5. (a) You are provided with the following details: Current ratio 2.5 Liquidity ratio ins Net Working Capital Rs,8,00,000 Stock Turnover Ratio 6 times * Ratio of Gross Profit on Sales 20% Turnover to Fixed assets (net) 2 times Average debt collection period 2 months Fixed Assets to net worth 0.8 Reserve and Surplus to Capital 0.5 JMKS PEO: (10) Draw up the Balance Sheet as at 31% March, 2018 of Zoom Ltd. with appropriate figures: Zoom Ltd. Balance Sheet…