RELIABLE COMMERCE CLASSES

T.Y.BCOM TEST

MARKS-50

Q.1 From the following details, prepare working capital estimate for 2004: Raw material Rs. 125 per unit Fixed wages Rs.9,00,000 per annum Variable wages Rs.40 per unit Fixed Overheads Rs.6,60,000 per annum Variable Overheads Rs.9 per unit Level of activity of purchases, production and sales 60,000 units per annum Other information : 1)Raw material stock 1.5 Months. 2) Process time 1 month & to include Fixed wages & Overheads full. Variable wages & overheads 40%. 3) Finished goods stock 1 month. 4) M.R.P of the product is arrived by calculating 20% profit on sales price. 5) 25% of the sales are to wholesale given them 10% discount. Credit given to 40% wholesalers two months against acceptance of bill and balance one month credit. 6) Balance sales to retailers. Half of it on cash basis by giving 2% discount, balance half on one month Credit. 7) cash required 15% of net working capital. 8) For material purchases we accept bill for two months for 25% of quantity and for balance we receive Credit for 1.5 months. 9) Fixed wages are paid months in advance. 10) Fixed overheads are paid 1 month in advance. 11) Variable wages time lag in one month. 12) Variable overheads time lag is half month. Q.2 Rearrange following data of Petrol Ltd. In suitable form for analysis and calculate Trend percentage and offer yur comments. Year Fixed Investment Current Preliminary Total Owners Term Debenture Total Asset Assets Exp. Asset Fund Loan Liablities 2000 20 10 40 5 75 20 20 35 75 2001 22 9 30 4 65 20 20 25 65 2002 24 8 20 3 55 20 20 15 55 2003 26 7 30 2 65 40 20 5 65 2004 28 6 40 1 75 60 15 0 75 Q.3 M/s Rajesh & co. Gives you the following information. Prepare trading and profit and loss account for the year ended 31st March,2004 and balance sheet as on that date in as much detail as is possible. Opening Stock Rs.90,000 Stock Turnover Ratio 10 times Net Profit Ratio on Turnover 15% Gross Profit Ratio on Turnover 20% Long term Loan Rs.2,00,000 Depreciation on Fixed Assets @10 % Rs.20,000 Closing Stock Rs.1,02,000 Credit period allowed by suppliers one month Average Debt collection period Two Month On 31st march, 2004 current Assets considered of stock, debtors and cash only.There was no bank overdraft.All Purchases were made on credit. Cash sales were 1/3rd of Credit sales. Q.4.

RELIABLE COMMERCE CLASSES

T.Y.BCOM TEST

MARKS-50

1) -------will ensure high return on investment. (a)adequate working capital (b) Surplus working capital (c)Shortage of working capital (d) none of these 2) When the current ratio is 2 : 5 and the amount of current liabilities is Rs.25,000.the amount of current assets is Rs.---------3) What ration indicates the relationship between shareholders funds and outsiders funds? a) proprietary ratio b) Operating ratio c) debt equity ratio d) none of these 4) for a oil company, stock of Oil is a -----------assets. 5) While estimating working capital on cash cost basis----------is excluded from cost of Inventory.