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The Directors of K ltd ask you to ascertain: a) Proprietors fund b) Fixed assets...

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Accounting

The Directors of K ltd ask you to ascertain:

a) Proprietors fund

b) Fixed assets

c) Closing debtors and closing creditors

d) Closing stock

e) Share capital

f) Cash and bank

The following information is available:

i. Inventory turnover ratio is 6 times

ii. Year-end debtors are outstanding for 2 months

iii. Year-end creditors are outstanding for 73 days(a 365 days year)

iv. Ratio of Cost of goods sold to a) proprietors fund is 2:1 b) fixed assets is 4:1

v. Ratio of gross profit to sales is 20%

vi. Closing stock is greater than opening stock by Rs 20,000

vii. Gross profit for the year ended 31/3/21 is Rs 2,40,000

viii. Reserves and surplus appearing in the balance sheet as at 31/3/21 is Rs 80,00

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