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Answer Posted / pnv srinivasu
A letter from a bank guarnteeing that a buyers payment to a
seller will be received on time and for the correct amount.
In the event that buyer is unable to make payment on the
purchase the bank will be required to cover the full or
remaining amount of the purchase.
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Q5 Prepare a Balance sheet from the following particulars: Gross profit =Rs.80,000 Gross profit to cost of goods sold =1/3 Stock velocity =6 times Opening stock =Rs.36,000 Accounts receivable velocity =72 days (year=360 days) Current assets=Rs.1,50,000 Account payable velocity=90 days Bills receivable =Rs.20,000 Bills payable=Rs.5,000 Fixed assets turnover ratio (on cost of goods sod)=8 times
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