Question

From the following information prepare the Balance Sheet of Abhishek
Ltd. [10]
Rs.
Paid up capital = 75,000
Plant & Machinery = 1,85,000
To sales (p.a.) = 7,00,000
Gross Profit = 20%
Annual credit sales = 70% of net sales
Current ratio = 2, inventory turnover = 4
Fixed asset Turnover = 2, Sales return = 15% of sales
Avg. collection period = 90 days, Bank credit to trade = 2
Cash to inventory = 1 : 20, Total debt to current liabilities = 3.

Answer 1

From the following information prepare the Balance Sheet of Abhishek

Ltd. [10]

Rs.

Paid up capital = 75,000

Plant & Machinery = 1,85,000

To sales (p.a.) = 7,00,000

Gross Profit = 20%

Annual credit sales = 70% of net sales

Current ratio = 2, inventory turnover = 4

Fixed asset Turnover = 2, Sales return = 15% of sales

Avg. collection period = 90 days, Bank credit to trade = 2

Cash to inventory = 1 : 20, Total debt to current liabilities = 3.