Course Code : MCS-035
Course Title : Accountancy and Financial Management
Assignment Number : MCA (3)/035/Assign/2012
Maximum Marks : 100
Weightage : 25%
Last Dates for Submission : 15
th
October, 2012 (For July 2012 Session)
15
th
April, 2013 (For January 2013 Session)
This assignment has five questions. Answer all questions. 20 marks are for viva
voce. You may use illustrations and diagrams to enhance the explanations. Please
go through the guidelines regarding assignments given in the Programme Guide for
the format of presentation.
Question 1:
From the following Trial Balance of Rama Nand Sagar, prepare Trading and Profit &
Loss Account for the year ended 31
st
December, 2011 and a Balance Sheet as on that
date:-
Dr. Balances Rs. Cr. Balances Rs.
Opening Stock 20,000 Sales 2,70,000
Purchases 80,000 Purchase Return 4,000
Sales Return 6,000 Discount 5,200
Carriage Inwards 3,600 Sundry Creditors 25,000
Carriage Outwards 800 Bills Payable 1,800
Wages 42,000 Capital 75,000
Salaries 27,500
Plant & Machinery 90,000
Furniture 8,000
Sundry Debtors 52,000
Bills Receivable 2,500
Cash in Hand 6,300
Travelling
Expenses
3,700
Lighting 1,400
Rent and Taxes 7,200
General Expenses 10,500
Insurance 1,500
Drawings 18,000
3,81,000 3,81,0009
Adjustments:-
(1) Stock on 31
st
December, 2011 was valued at Rs. 24,000 (Market Value Rs.
30,000).
(2) Wages outstanding for December, 2011 amounted to Rs. 3,000.
(3) Salaries outstanding for December, 2011 amounted to Rs. 2,500.
(4) Prepaid insurance amounted to Rs. 300.
(5) Provide depreciation on Plant and Machinery at 5% and on Furniture at 20%.
(20Marks)
Question 2:
Following are the balance sheets of a limited company as on 31
st
December, 2010 and
2011.
Liabilities 2010
Rs.
2011
Rs.
Assets 2010
Rs.
2011
Rs.
Share Capital
Reserves
B. & L A/c
Bank Loan
(Long-term)
Creditors
Bills Payable
64,000
13,000
8,600
25,000
38,000
8,000
84,000
15,500
8,800
---
34,000
8,500
Goodwill
Buildings
Plant
Stock
Debtors
Cash
Bank
3,000
50,950
35,000
25,500
42,000
150
---
2,250
48,000
43,000
18,800
36,200
180
2,100
1,56,600 1,50,800 1,56,600 1,50,800
Taking into account the following additional information, you are re-required to prepare
funds flow statement and statement of changes in working capital.
(a) Dividend paid was Rs.6,000/-
(b) Rs.3,600/- was written off as depreciation on plant and Rs.2,950/- on buildings.
(c) Profit on sale of plant was Rs.3,000/-
(20 Marks)10
Question 3:
The following are the ratios extracted from the Balance Sheet of a company as on 31
st
Dec 2011. Draw up the Balance Sheet of the company.
Current Liabilities 1.0
Current Assets 2.5
Liquidity Ratio 1.5
Stock Turnover Ratio (Based on COGS) 6
Fixed Assets Turnover Ratio (Based on sale) 2
Gross Profit as percentage of sales 20%
Debtor collection period 2 Months
Working capital Rs.3, 00,000
Shareholders Capital Rs.5, 00,000
Reserve and Surplus Rs.2, 50,000
(20 Marks)
Question 4: Critically examine the various methods of evaluation of
capital budgeting proposals? Explain the significance and
application of the technique of discounted cash-flow. (20 Marks)
Question 5: What do you mean by receivable management? What are
its objectives? Explain the dimensions of receivable
management. (20 Marks)
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