MBA SEMESTER I

MBA104 - FINANCIAL AND MANAGEMENT ACCOUNTING

Q1. Based on the following information prepare the Balance Sheet of Star Enterprises
Ltd. as on 31st March 2016. Show workings and assumptions, if any.
Current Ratio
Liquidity Ratio
Net working Capital
Inventory turnover Ratio
Ratio of gross profit to Sales
Turnover Ratio to net fixed assets
Average Debt collection period
Fixed Assets to net worth
Long term debt to capital and reserve

2.5
1.5
Rs. 6,00,000
5
20 %
2
2.4 months
0.8
7/25 = 0.28

Answer:
Balance Sheet of Star Enterprises Ltd. as on 31st March 2016
Liabilities
Capital
Reserves

Rs.
1000000
and 500000

Assets
Fixed Assets
Inventories

Rs.
1200000
400000

Surplus

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Q2. Explain Balance Scorecard. Give an illustration of Balance Score Card.
The balanced scorecard is a contemporary performance measurement system for an
organisation. Traditionally, a companys performance was measured only by using certain

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Q3. From the following Balance Sheet of ABC Ltd. as on 31. 03. 2015 and 31. 03. 2016,
prepare Cash Flow Statement as per AS-3 using the Indirect method:
Liabilities
Capital
Retained Earnings
Debentures
Current liabilities Creditors
Bank loan
Liability for Expenses
Dividend Payable

31.03.2015
50,00,000
26,50,000
8,80,000
1,50,000
3,30,000
1,50,000

31.03.2016
50,00,000
36,90,000
9,00,000
8,20,000
3,00,000
2,70,000
3,00,000

Assets
Plant and Machinery
Less : Depreciation
Current Assets Debtors
Less: Provision
Cash
Marketable Securities
Inventories
Prepaid Expenses
.

91,60,000

1,12,80,000

27,30,000
6,10,000
21,20,000
23,90,000
1,50,000
22,40,000
15,20,000
11,80,000
20,10,000
90,000
91,60,000

40,70,000
7,90,000
32,80,000
28,30,000
1,90,000
26,40,000
18,20,000
15,00,000
19,20,000
1,20,000
1,12,80,000

Additional Information:
1. Net profit for the year ended 31.03.2016, after charging depreciation Rs. 1,80,000 is Rs.
22,40,000.
2. Debtors of Rs. 2,30,000 were determined to be worthless and were written off against the
provisions for doubtful debts account during the year.
3. ABC Ltd. declared dividend Rs. 12,00,000 for the year 2015-16.

Sol: Cash Flow Statement as per AS-3 using the Indirect method for the year ended on 31 st
March 2016

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