Professional Documents
Culture Documents
Ans: 1c, 2a, 3a, 4c, 5b, 6b, 7b, 8b, 9b, 10a
a. Trading a/c
2. Commercial papers
b. Ledger account
3. General journal
c. Going concern
5. Gross profit/loss
e. P&l a/c
6. Conservatism
g. Subsidiary book
8. Accounting concept
h. Accounting convention
9. Cash account
j. Sales-Cost of sales
Ans: 1e, 2d, 3g, 4f, 5j, 6h, 7a, 8c, 9b, 10i
vi. Exercises
1. Following infomation is available from the books of Chand for the year2014
Opening stock: 25000, Purchases: 80000, Direct exp:15500, Sales:100000,
Closing stock: 30500
Calculate Cost of goods sold and gross profit.
a.CGS:90000, GP:10000
b.CGS:65500, GP:15000
c.CGS:80000, GP:12000
Ans: a
3. Stock A generates a rate of return is 20% and Standard diviation 20%, Stock B
generates a rate of return is 25% and Standard diviation 15%, Stock C generates a
rate of return is 35% and Standard diviation 25%and Risk free rate is 5%. Then
which stock gives a better risk adusted return.
a. Stock A
b. Stock B
c. Stock C
Ans: Stock A gives => 20-5=15/20=0.17
Stock B gives => 25-5=20/15=1.33
Stock C gives => 35-5=30/25=1.2
Therefore Stock B gives better risk adjusted return.
Current Asset
a.104000, b.130000, c.98000
ii.
Liquid Asset
a.40000, b.60000, c.50000
iii.
Inventory
a.36000, b.55000, c.44000
5. The sales of Forma Lt. in the first half of 1999, amounted to Rs.270000 and
profit earned was Rs.7200. The sales in the second half year registered an increase
and amounted to Rs.342000. The profit earned was Rs.20700 in that half year.
Assuming no change in fixed costs, Calculate