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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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