Using the information given below, PREPARE the Balance Sheet of Nevy Private Limited - Particulars Details Stock turnover Ratio 15 times Cash and…

Balance Sheet of Nevy Private Limited as of 31.03.2025 Particulars Notes Amount (₹) Amount (₹) A] Equities and Long Term Liabilities Share Capital 36,00,000 Reserves and Surplus WN-7 1,18,750 14% Bonds Bal. Fig. 22,31,250 59,50,000 B] Current Liabilities Trade Payables WN-6 40,30,244 Outstanding expenses and provisions (*Net of Prepaid expenses of 7,50,000) Bal. Fig. 4,69,756 45,00,000 TOTAL 1,04,50,000 C] Fixed Assets Opening WDV WN-3 32,94,118 (-) Depreciation WN-3 (4,94,118) 28,00,000 (WN-2) D] Current Assets Inventory WN-5 26,86,829 Trade Receivables WN-5 41,98,170 Cash and Bank Balance WN-4 7,65,000 76,50,000 (WN 1) TOTAL 1,04,50,000 WN 1 - Calculation of Current Assets using Current Ratio Current Ratio = CA / CL CL = 45,00,000 + 7,50,000 = 52,50,000 1.6 = CA / 52,50,000 Therefore CA = 84,00,000 CA = Inventory + Trade Receivables + Cash Bank Balance + Prepaid Exp 84,00,000 = Inventory + Trade Receivables + 7,65,000 + 7,50,000 Therefore, total of Inventory + Trade Receivables + Cash Bank Balance = 76,50,000 WN 2 - Calculation of Fixed Assets & Total Assets Fixed Assets = 25% of Total liabilities or 25% of Total Assets which means Current Assets = 75% of Total liabilities or 75% of Total Assets Fixed Assets + Current Assets = Total Assets/Total Liabilities 25 + 75 = 100 Fixed Assets = 84,00,000 x 25/75 = 28,00,000 Total Assets = 1,12,00,000 WN 3 – Calculation of Depreciation and Opening WDV of Fixed Assets Opening WDV - Depreciation = Closing WDV 100 - 15 = 85 Therefore, Depreciation = 28,00,000 x 15/85 = 4,94,118 Opening WDV = 32,94,118 WN 4 - Calculation of Cash & Bank Balance Cash & Bank Balance = 10% of (CA – Prepaid Exp) Cash & Bank balance = 10% of (84,00,000 – 7,50,000) Therefore, cash and bank balance = 7,65,000 WN 5 – Calculation of Inventory & Trade receivables Total CA = Inventory + Trade Receivables + Cash Bank Balance + Prepaid Exp 84,00,000 = Inventory + Trade Receivables + 7,65,000 + 7,50,000 Inventory + Trade Receivables = 68,85,000 Now, Let Sales be X GP Ratio = 20% = 0.2X COGS = 80% = 0.8X Debtors T/O Ratio = Net Credit Sales / Debtors 12 = X / Debtors Debtors = X / 12 Inventory T/O Ratio = COGS/Inventory 15 = 0.8X/Inventory Inventory = 0.8X/15 Inventory + Trade Receivables = 68,85,000 0.8X / 15 + X / 12 = 68,85,000 Therefore X = Sales = 5,03,78,050 COGS = 4,03,02,440 Trade Receivables = 41,98,170 Inventory = 26,86,829 WN 6 – Calculation of Trade Payables using Creditors Turnover Ratio Creditors T/O Ratio = COGS / Trade Payables 10 = 4,03,02,440 / Trade Payables Trade Payables = 40,30,244 WN 7 – Calculation of Reserves and Surplus & 14% Bonds Total Capital Employed = Share Cap + R&S + Bonds Capital Gearing Ratio = Capital bearing Fixed % /Capital not bearing fixed % 0.6 = Bonds/Share Capital + R&S Therefore, Bonds = 21,60,000 + 0.6 R&S Substituting the value of bonds in the above equation, Total Capital Employed = Share Cap + R&S + (21,60,000 + 0.6 R&S) 59,50,000 = 36,00,000 + 1.6 R&S + 21,60,000 Therefore R&S = 1,18,750