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12th Accountancy - Financial Statement Analysis Book Back Questions

Published on: 05/09/2019

Financial Statement Analysis

Download Tamil Nadu 12th Standard Accountancy question papers, model tests, one-mark questions, important questions, and public exam papers in PDF format. Free study materials and answer keys for TN State Board students.

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Questions:

Generic 3

2 x 3 = 6

From the following particulars of Mani Ltd an Kani Ltd prepare a common-size income statement for the year ended 31^st March, 2019

Particulars	Mani Ltd	Kani Ltd
	Rs.	Rs.
Revenue from operations	2,00,000	2,50,000
Other income	30,000	25,000
Expenses	1,10,000	1,25,000

From the following particulars, prepare comparative income statement of Abdul Co. Ltd.

Particulars	2015-16 Rs.	2016-17 Rs.
Revenue from operations	3,00,000	3,60,000
Other income	1,00,000	60,000
Expenses	2,00,000	1,80,000
Income tax	30%	30%

Generic 5

4 x 5 = 20

Compute trend percentages for the following particulars of Boomi Ltd

Particulars	Rs.in lakhs
	Year 1	Year 2	Year 3
I EQUITY AND LIABILITIES
1. Shareholders’ fund
a) Share capital	200	254	212
b) Reserves and surplus	60	60	90
2. Non-current liabilities
Long-term borrowings	140	154	168
3. Current liabilities
Trade payables	40	60	80
Total	440	528	550
II ASSETS
1. Non-current assets
a) Fixed assets	200	236	206
b) Non - current investments	80	100	120
2. Current assets
Inventories	120	132	144
Cash and cash equivalents	40	60	80
Total	440	528	550

From the following particulars of Neithal Ltd, calculate trend percentages.

Particulars	Rs.in lakhs
	2015-16	2016-17	2017-18
Revenue from operations	150	135	90
Other income	25	5	15
Expenses	125	75	50
Income tax	40%	40%	40%

Prepare common-size balance sheet of Maria Ltd. as on 31^st March, 2018.

Particulars	31st March 2018
	Rs.
I EQUITY AND LIABILITIES
Shareholders’ funds	4,00,000
Non-current liabilities	3,20,000
Current liabilities	80,000
Total	8,00,000
II ASSETS
Non-current assets	6,00,000
Current assets	2,00,000
Total	8,00,000

From the following particulars of Siva Ltd, prepare common size income statement for the years ended 31st March, 2016 and 31st March, 2017.

Particulars	2015-16	2016-17
	Rs.	Rs.
Revenue from operations	2,00,000	3,00,000
Other income	25,000	75,000
Expenses	2,50,000	1,50,000
Income tax %	40	40

Multiple Choice Question

5 x 1 = 5

Expenses for a business for the first year were Rs. 80,000. In the second year, it was increased to Rs. 88,000. What is the trend percentage in the second year?

(a)

10 %

(b)

110 %

(c)

90 %

(d)

11%

In a common-size balance sheet, if the percentage of non-current assets is 75, what would be the percentage of current assets?

(a)

175

(b)

125

(c)

(d)

100

Which of the following statements is not true?

(a)

All the limitations of financial statements are applicable to financial statement analysis also.

(b)

Financial statement analysis is only the means and not an end.

(c)

Expert knowledge is not required in analysing the financial statements

(d)

Interpretation of the analysed data involves personal judgement

10.

The term ‘fund’ refers to

(a)

Current liabilities

(b)

Working capital

(c)

Fixed assets

(d)

Non-current assets

11.

Which of the following statements is not true?

(a)

Notes and schedules also form part of financial statements

(b)

The tools of financial statement analysis include common-size statement

(c)

Trend analysis refers to the study of movement of figures for one year

(d)

The common–size statements show the relationship of various items with somecommon base, expressed as percentage of the common base

Generic 2

2 x 2 = 4

12.

When is trend analysis preferred to other tools?

13.

What is working capital?

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Answers Key:

Generic 3

2 x 3 = 6

Common-size income statement for the year ended 31^st March, 2019
Particulars	Mani Ltd		Kani Ltd
	Absolute amount	Percentage of revenue from operations	Absolute amount	Percentage of revenue from operations
	Rs.	Rs.	Rs.
Revenue from operations	2,00,000	100	2,50,000	100
Add: Other income	30,000	15	25,000	10
Total revenue	2,30,000	115	2,75,000	110
Less: Expenses	1,10,000	55	1,25,000	50
Profit before tax	1,20,000	60	1,50,000	60

Comparative income statement of Abdul Co. Ltd for the years ended 31^st March, 2016 and 31^st March, 2017
Particulars	2015-16	2016-17	Absolute amount of increase (+) or decrease (–)	Percentage increase (+) or decrease (–)
	Rs.	Rs.	Rs.
Revenue from operations	3,00,000	3,60,000	+60,000	+20
Add: Other income	1,00,000	60,000	–40,000	–40
Total revenue	4,00,000	4,20,000	+20,000	+5
Less: Expenses	2,00,000	1,80,000	–20,000	–10
Profit before tax	2,00,000	2,40,000	+40,000	+20
Less: Tax (30%)	60,000	72,000	+12,000	+20
Profit after tax	1,40,000	1,68,000	+28,000	+20

Generic 5

4 x 5 = 20

Trend analysis for Boomi Ltd
Particulars	Rs.in lakhs			Trend percentages
	Year 1	Year 2	Year 3	Year 1	Year 2	Year 3
I EQUITY AND LIABILITIES
1. Shareholders’ fund
a) Share capital	200	254	212	100	127	106
b) Reserves and surplus	60	60	90	100	100	150
2. Non-current liabilities
Long-term borrowings	140	154	168	100	110	120
3. Current liabilities
Trade payables	40	60	80	100	150	200
Total	440	528	550	100	120	125
II ASSETS
1. Non-current assets
a) Fixed assets	200	236	206	100	118	103
b) Non- current investments	80	100	120	100	125	150
2. Current assets
Inventories	120	132	144	100	110	120
Cash and cash equivalents	40	60	80	100	150	200
Total	440	528	550	100	120	125

**Trend analysis for Neithal Ltd**
Particulars	Rs.in lakhs			Trend percentages
	2015-16	2016-17	2017-18	2015-16	2016-17	2017-18
Revenue from operations	150	135	90	100	90	60
Add: Other income	25	5	15	100	20	60
Total revenue	175	140	105	100	80	60
Less: Expenses	125	75	50	100	60	40
Profit before tax	50	65	55	100	130	110
Less: Income tax (40%)	20	26	22	100	130	110
Profit after tax	30	39	33	100	130	110

Common-size balance sheet of Maria Ltd as on 31^st March, 2018
Particulars	Absolute amount	Percentage of total assets
	Rs.
I EQUITY AND LIABILITIES
Shareholders’ funds	4,00,000	50
Non-current liabilities	3,20,000	40
Current liabilities	80,000	10
Total	8,00,000	100
II ASSETS
Non-current assets	6,00,000	75
Current assets	2,00,000	25
Total	8,00,000	100

Common–size income statement of Siva Ltd for the year ended 31st March, 2016 and 31st March, 2017
Particulars	Absolute amount 2015-16	Percentage of revenue from operations for 2015-16	Absolute amount 2016-17	Percentage of revenue from operations for 2016-17
	Rs.	Rs.	Rs.
Revenue from operations	2,00,000	100.00	3,00,000	100
Add: Other income	25,000	12.50	75,000	25
Total revenue	2,25,000	112.50	3,75,000	125
Less: Expenses	2,50,000	125.00	1,50,000	50
Profit / loss before tax	-25,000	-12.50	2,25,000	75
Less: Income tax (40%)	-	-	2,25,000	30
Profit after tax	-25,000	-12.50	1,35,000	45

Multiple Choice Question

5 x 1 = 5

(b)
110 %

10.

(b)
Working capital

11.

Generic 2

2 x 2 = 4

12.

Trend analysis refers to the study of movement of figures over a period. The trend may be increasing trend or decreasing trend or irregular. When data for more than two years are to be analysed, it may be difficult to use comparative statement.

13.

Working capital statement or schedule of changes in working is prepared to disclose net change in working capitals on two specific dates (generally two balance sheet dates). It is prepared from current assets and current liabilities
Working Capital = current Assets - Current Liabilities.