Prepare Balance Sheet and Profit and Loss Account from the following information:
|
|
Rs |
|
Capital |
4,00,000 |
|
Working capital |
1,80,000 |
|
Bank overdraft |
30,000 |
There is no fictitious asset. Current assets contain only stock, debtors and cash. The following additional data is also available:
(i) Closing stock is 20% higher than opening stock
(ii) Current ratio 2.5
(iii) Quick ratio 2.0
(iv) Proprietary ratio 0.6 (Fixed assets: Proprietary fund)
(v) Gross profit ratio 20% (of sales)
(vi) Stock velocity 5
(vii) Debtor’s velocity 73 days
(viii) Net profit ratio 10% (to average capital employed).