The following information pertains to P Limited for the year ended 31st March, 2025 : Particulars Amount / Ratio Sales 3,60,00,000 Rate of Income…

CA Intermediate · Financial Management and Strategic Management · RTP · May 2026
The following information pertains to P Limited for the year ended 31st March, 2025 : Particulars Amount / Ratio Sales 3,60,00,000 Rate of Income Tax 40% Return on Net Worth 30% Share Capital to Reserves Ratio 6 : 4 Current Ratio 2 : 1 Percentage of Net Profit to Sales 8% Inventory Turnover (based on cost of goods sold) 12 Cost of goods sold 1,44,00,000 Sundry Debtors 12,00,000 Sundry Creditors 16,00,000 Interest on 14% debentures 3,36,000 You are required to CALCULATE: (iv) Fixed Assets

Suggested Answer and Working Notes:

(iv) Fixed Assets Calculation of Total liabilities Interest on 14% Debentures = 3,36,000 Therefore debentures = (3,36,000 x 100) / 14% = 24,00,000 Total of Liabilities Side Particulars ₹ Share Capital 57,60,000 Reserves 38,40,000 Debentures 24,00,000 Sundry Creditors 16,00,000 Total Liabilities 1,36,00,000 Current Ratio = 2:1 Sundry Creditors = 16,00,000 Current Assets / Current Liabilities = 2 Current Assets / Sundry Creditors = 2 Current Assets /16,00,000 = 2 Current Assets = 2 x 16,00,000 = 32,00,000 Fixed Assets = Total Liabilities - Current Assets = 1,36,00,000 -32,00,000 = 1,04,00,000

Topics: Part-A: Financial Management

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