From the following information, calculate Proprietary Ratio:

BALANCE SHEET OF FORTUNE LTD.

as at 31st March, 2019

Particulars

Note No.

Amount
(₹)

I. EQUITY AND LIABILITIES

1. Shareholders' Funds

(a) Share Capital

6,00,000

(b) Reserves and Surplus

1,50,000

2. Current Liabilities

(a) Trade Payables

1,00,000

(b) Other Current Liabilities

50,000

(c) Short-term Provisions (Provision for Tax)

1,00,000

Total

10,00,000

II. ASSETS

1. Non-Current Assets

Fixed Assets (Tangible Assets)

5,00,000

2. Current Assets

(a) Current Investments

1,50,000

(b) Inventories

1,00,000

(c) Trade Receivables

1,50,000

(d) Cash and Cash Equivalents

1,00,000

Total

10,00,000

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Solution

Total Assets = Fixed Assets + Short-term Investments + Inventories + Trade Receivables + Cash and Cash Equivalents

= 5,00,000 + 1,50,000 + 1,00,000 + 1,50,000 + 1,00,000 = 10,00,000

Shareholders’ Funds = Share Capital + Reserves and Surplus

= 6,00,000 + 1,50,000 = 7,50,000

Suggest Corrections

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	₹		₹
Equity Share Capital	20,00,000	Surplus, i.e., Balance in Statement of Profit and Loss (Cr.)	3,00,000
12% Preference Share Capital	10,00,000	Stock	6,00,000
Fixed Assets (At cost)	46,60,000	Sundry Debtors	8,00,000
Accumulated Depreciation	16,60,000	Cash	1,50,000
Investments	4,00,000	Loans and Advances	50,000
Current Liabilities	8,00,000	Provision for Taxation	2,00,000
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Q. From the following Balance Sheet of Double Tree Ltd. as at 31st March, 2019 and additional information, calculate Operating Profit before Working Capital Changes:

Particulars ulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital		5,00,000	5,00,000
(b) Reserves and Surplus	1	6,70,000	5,00,000
2. Current Liabilities
(a) Trade Payables		60,000	50,000
(b) Other Current Liabilities (Outstanding Expenses)		20,000	15,000
(c) Short-term Provisions (Provision for Tax)		1,00,000	90,000
Total Total Expenses		13,50,000	11,55,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets (Tangible)		7,50,000	7,30,000
(b) Non-Current Investments		2,50,000	3,00,000
2. Current Assets		3,50,000	1,25,000
Total		13,50,000	11,55,000

Notes to Accounts

Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
I. Reserve and Surplus
General Reserve	5,00,000	4,00,000
Surplus, i.e., Balance in Statement of Profit and Loss	1,70,000	1,00,000
	6,70,000	5,00,000

Additional Information: Depreciation for the year was ₹75,000.

From the following Balance Sheet as at 31st March, 2019 and Statement of Profit and Loss for the year ended 31st March, 2019 of RSB Ltd. and additional information, prepare Cash Flow Statement:

Particulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital		7,50,000	5,00,000
(b) Reserves and Surplus	1	9,50,000	3,00,000
2. Non-Current Liabilities
Long-term Borrowings (5% Debentures)		7,00,000	4,00,000
3. Current Liabilities
(a) Trade Payables		1,10,000	90,000
(b) Other Current Liabilities	2	39,000	25,000
(c) Short-term Provisions (Provision for Tax)		2,60,000	2,25,000
Total		28,09,000	15,40,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets – Tangible	3	6,85,000	7,45,000
(b) Non-current Investments		7,50,000	2,50,000
2. Current Assets
(a) Current Investments		6,74,000	95,000
(b) Inventories		1,00,000	2,00,000
(c) Trade Receivables		4,00,000	1,50,000
(d) Cash and Cash Equivalents		2,00,000	1,00,000
Total		28,09,000	15,40,000

STATEMENT OF PROFIT AND LOSS
for the year ended 31st March, 2019
Particulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. Revenue from Operations	4	40,00,000	35,00,000
II. Other Income	5	35,000	30,000
III. Total Revenue (I + II)		40,35,000	35,30,000
IV. Expenses:
Purchases of Stock-in-Trade		27,00,000	24,70,000
Change in Inventories of Stock-in-Trade	6	1,00,000	50,000
Finance Cost		27,500	20,000
Depreciation		40,000	45,000
Other Expenses		22,500	20,000
Total Expenses		28,90,000	26,05,000
V. Profit before Tax (III – IV)		11,45,000	9,25,000
VI. Less: Tax		3,45,000	2,25,000
VII. Profit after Tax (V – VI)		8,00,000	7,00,000

Notes to Accounts

Particular		31^st March 2019 (₹)	31^st March 2018 (₹)
1.	Reserves and Surplus
	Debenture Redemption Reserve	1,00,000	1,00,000
	Surplus, i.e., Balance in Statement of Profit and Loss	8,50,000	2,00,000
		9,50,000	3,00,000
2.	Other Current Liabilities
	Interest on Debentures	35,000	20,000
	Outstanding Expenses	4,000	5,000
		39,000	25,000
3.	Fixed Assets–Tangible
	Cost	8,90,000	9,90,000
	Less: Accumulated Depreciation	2,05,000	2,45,000
		6,85,000	7,45,000
4.	Revenue from Operations
	Sales	42,00,000	35,75,000
	Less: Sales Return	2,00,000	75,000
		40,00,000	35,00,000
5.	Other Income
	Interest on Deposits	15,000	12,500
	Dividend on Investments	10,000	17,500
	Gain (Profit) on Sale of Fixed Assets	10,000	…
		35,000	30,000
6.	Change in Inventories of Stock-in-Trade
	Opening Stock	2,00,000	2,50,000
	Less: Closing Stock	1,00,000	2,00,000
		1,00,000	50,000

Additional Information:

Q. From the following Balance Sheet of Depth Ltd. as at 31st March, 2019, prepare Comparative Balance Sheet:

Particulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital		2,80,000	1,80,000
(b) Reserves and Surplus		1,00,000	1,00,000
2. Non-Current Liabilities
Long-term Borrowings		80,000	20,000
3. Current Liabilities
Trade Payables		50,000	30,000
Total		5,10,000	3,30,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets:
(i) Tangible Assets		2,80,000	1,80,000
(ii) Intangible Assets		50,000	30,000
(b) Non-Current Investments		80,000	50,000
2. Current Assets
(a) Inventories		70,000	30,000
(b) Cash and Cash Equivalents		30,000	40,000
Total		5,10,000	3,30,000

Q. From the following Balance Sheet of H.P. Ltd. as at 31st March, 2019, prepare Comparative Balance Sheet:

Particulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital:
(i) Equity Share Capital		12,50,000	5,00,000
(ii) Preference Share Capital		2,50,000	2,50,000
(b) Reserves and Surplus		3,00,000	4,50,000
2. Non-Current Liabilities
Long-term Borrowings: 12% Debentures		9,50,000	5,50,000
Loan from Directors		2,50,000	2,00,000
3. Current Liabilities
(a)Short-term Borrowings		3,50,000	1,75,000
(b) Trade Payables		2,00,000	1,00,000
(c) Short-term Provisions		50,000	25,000
Total		36,00,000	22,50,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets (Tangible)		22,50,000	15,00,000
2. Current Assets
(a) Inventories		4,50,000	2,50,000
(b) Trade Receivables		8,00,000	4,50,000
(c) Cash and Cash Equivalents		1,00,000	50,000
Total		36,00,000	22,50,000

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BALANCE SHEET OF FORTUNE LTD. as at 31st March, 2019
Particulars	Note No.	Amount (₹)
I. EQUITY AND LIABILITIES 1. Shareholders' Funds
(a) Share Capital		6,00,000
(b) Reserves and Surplus		1,50,000
2. Current Liabilities
(a) Trade Payables		1,00,000
(b) Other Current Liabilities		50,000
(c) Short-term Provisions (Provision for Tax)		1,00,000
Total		10,00,000
II. ASSETS
1. Non-Current Assets
Fixed Assets (Tangible Assets)		5,00,000
2. Current Assets
(a) Current Investments		1,50,000
(b) Inventories		1,00,000
(c) Trade Receivables		1,50,000
(d) Cash and Cash Equivalents		1,00,000
Total		10,00,000

Total Assets = Fixed Assets + Short-term Investments + Inventories + Trade Receivables + Cash and Cash Equivalents = 5,00,000 + 1,50,000 + 1,00,000 + 1,50,000 + 1,00,000 = 10,00,000 Shareholders’ Funds = Share Capital + Reserves and Surplus = 6,00,000 + 1,50,000 = 7,50,000

Total Assets = Fixed Assets + Short-term Investments + Inventories + Trade Receivables + Cash and Cash Equivalents

= 5,00,000 + 1,50,000 + 1,00,000 + 1,50,000 + 1,00,000 = 10,00,000

Shareholders’ Funds = Share Capital + Reserves and Surplus

= 6,00,000 + 1,50,000 = 7,50,000