CAIIB ABM : MODULE D NUMERICALS

1.
Find total assets if DER = 2:1, CL = 8 lac, equity = 4 lac.

Since total assets = debt + equity + liability
=> total assets = debt + 4 + 8
=> debt = TA - 12

Since DER = debt / equity
=>2:1 = (TA - 12) / 4

so, TA = 20 lacs Ans

2.
Find equity, given assets = 200 lac, DER = 2:1, CL = 56 lac.

Since DER = debt / equity
=> 2:1 = debt / equity
so, debt = 2 × equity

Since total assets = debt + equity + liability
=> 200 = 2 × equity+ equity + 56
So, equity = 48 lacs Ans

3.
Find NWC, given CR = 2.5:1 & CA = 30 lac.

Since CR = CA / CL & NWC = CA - CL
=> 2.5:1 = 30 / CL
=> CL = 12
and NWC = 30 - 12 = 18 lac Ans

4.
Suppose CR is 4:1, NWC is Rs 30000/-, what is CA?

Since CR = CA / CL & NWC = CA - CL => CL = CA - NWC
=> 4:1 = CA / (CA - 30000)
so, CA = Rs 40000 Ans

5.
An account became NPA on 05042009. The outstanding in the account is 10 lacs. Realisable value of security is 7 lacs. The balance including Rs 50000 as recorded and suspended interest. How much provision is required to be made on 31032010?


6.
Total current assets of a company is Rs 32 crore and the NWC is Rs 8 crore. The ratio is ___.
(Note:
Current asset = stock, debtors, loans etc
Total asset = current assets + non current assets
Non Current Assets = goodwill, preliminary exp)

Sol:
NWC = CA - CL
so, CA = 32 - 8 = 24
Current Ratio = Current Assets ÷ Current Liability 
= 32÷24 =1.33:1 Ans

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Acronyms used:
NWC = Net Working Capital
TA = Total Assets
CL = Current Liability
CA = Current Assets
CR = Current Ratio