ASSIGNMENTS
M.Com General– 1st Semester
Subject Name: Advanced Financial Accounting
Subject code: MCC 101
Spring Drive 2012
4 credits (60 marks)
(BKID: B1467)
Set 1
Answer the following questions. Each question carries 10
marks.
1.
What are accounting standards? State their objectives.
2.
What does the draft of a proposed standard constitute?
3.
State the factors that affect goodwill.
4.
The capital structure of Hertz Ltd is as follows:
14%Preference shares of Rs.10 each 20,00,000
Equity shares of Rs.10 each 32,00,000
Reserves and surplus 16,00,000
10%Debentures 24,00,000
11%Loans from banks/financial institutions 28,00,000
1,20,00,000
The average annual profit before payment of tax and interest
is Rs.24, 00,000.The income tax rate is assumed to be @40 per cent. Compute the
value shares of the company, if the applicable price earning ratio is 9.
5.
What do you understand by inter-company holdings?
6.
The following is the Balance sheet of A Limited:
|
Liabilities
|
Rs.
|
Assets
|
Rs.
|
|
Share capital(Rs.10
Shares)
|
10,000
|
Fixed Assets
|
8,000
|
|
General reserve
|
5,000
|
Current Assets
|
12,000
|
|
Sundry creditors
|
5,000
|
||
|
20,000
|
20,000
|
||
The business is taken over by B
Ltd.for a sum of Rs.30,000 to be satisfied by issue of shares of Rs.10 each.The
current assets of A Ltd. include goods of the value of Rs.5,000 which were
purchased by it from B Limited on which B Ltd. charged a profit of 25% on
cost.The current assets of A Ltd.also include a debt of Rs.2000 due by B Ltd.
to A Ltd.for goods purchased and which have now been completely sold by that
company.
Prepare realization account and
the shareholders account in the books of A Ltd.and pass
the necessary journal entries
for acquisition of business in the books of B Ltd.
ASSIGNMENTS
M.Com General– 1st Semester
Subject Name: Advanced Financial Accounting
Subject code: MCC 101
Spring Drive 2012
4 credits (60 marks)
(BKID: B1467)
Set 2
Answer the following questions. Each question carries 10
marks.
1.
The following is the Balance Sheet of Downhill Ltd.as at 31st March,2005:
|
Liabilities
|
Rs.
|
Assets
|
Rs.
|
|
20,000 Equity shares of Rs.100 each
|
20,00,000
|
Goodwill
|
25,000
|
|
12% Debentures
|
5,00,000
|
Land and buildings
|
1,50,000
|
|
Outstanding debentures interest
|
1,20,000
|
Plant and machinery
|
3,00,000
|
|
Creditors
|
3,00,000
|
Furniture
|
80,000
|
|
Stock
|
2,70,000
|
||
|
Debtors
|
60,000
|
||
|
Cash at bank
|
35,000
|
||
|
Preliminary expenses
|
20,000
|
||
|
Profit and loss A/c
|
19,80,000
|
||
|
29,20,000
|
29,20,000
|
The following scheme of
reconstruction is executed:
i. Equity shares are reduced by Rs.95 per share.They
are,then, consolidated into 10,000 equity shares of Rs.10 each.
ii. Debentureholders agree to forego outstanding
debenture interest.As a compensation 12% Debentures are converted into 14%
Debentures,the amount remaining Rs.5,00,000.
iii. Creditors are given the option to either accept
50% of their claim in cash in full settlement or to convert their claim into
equity shares of Rs.10 each. Creditors for Rs.2,00,000 opt for shares in
satisfaction of their claims.
iv. To make payment to creditors opting for cash
payment ant to augment working capital, the company issues 50,000 equity shares
of Rs.10 each at par, the entire amount being payable along with applications.
The issue was fully subscribed.
v. Land and Buildings are revalued at Rs.2, 00,000
whereas Plant &Machinery is to be written down to Rs.2, 10,000.A provision
amounting to Rs.5000 is to be made for doubtful debts.
Pass journal entries and draft
the company’s balance sheet immediately after the reconstruction.
2. Differentiate between the two types of
amalgamation.
3. What are the steps required for drafting a
reconstruction scheme?
4. Discuss preferential creditors ‘payments.
5. Discuss the valuation of investments.
6. LT Ltd.went into liquidation with the following
liabilities.
Secured creditors -Rs.40,
000(securities realized Rs.50, 000)
Preferential creditors -1,200
Unsecured creditors -61,000
Liquidation expenses -500
The liquidator is entitled to a
remuneration of 3% on the amount realized (including securities in the hands of
secured creditors) and 1-1/2% on the amount distributed to
unsecured creditors.The various assets (excluding the securities
in the hands of the secured creditors) realized are Rs.52, 000.
Prepare the liquidator’s statement of account showing the
payment made to the unsecured creditors.
ASSIGNMENTS
M.Com General– 1st Semester
Subject Name: Management Concepts and Organizational
Behaviour
Subject code: MCC 102
Spring Drive 2012
4 credits (60 marks)
(BKID: B1468)
Set 1
Answer the following questions. Each question carries 10
marks.
1.
Explain the nature of management.
2.
Explain the different types of managerial roles.
3.
What is meant by MBO? Who proposed this concept? Discuss the various features
of MBO.
4.
Imagine yourself as a manager of a unit that manufactures bags. You have just
received an order for a particular design of leather bag in a specific
colour.List the activities that are involved in accomplishing the project. How
will you coordinate all the employees involved? Write in detail.
5.
Try to identify and discuss the factors to be considered for forecasting demand
and supply.
6.
Explain the determinants of corporate planning.
ASSIGNMENTS
M.Com General– 1st Semester
Subject Name: Management Concepts and Organizational
Behaviour
Subject code: MCC 102
Spring Drive 2012
4 credits (60 marks)
(BKID: B1468)
Set 2
Answer the following questions. Each question carries 10
marks.
1.
Explain the Graicunas theory.
2.
Why do you think is delegation of authority significant in modern
organisations?
3.
Write a short note on each of the following:
i.
Job Design
ii.
Job empowerment
4.
Try to identify the various barriers that hinder effective communication.
5.
What are the advantages and disadvantages of traditional control techniques?
6.
Explain the factors that contribute to group cohesiveness. What are the
positive outcomes of group cohesiveness?
ASSIGNMENTS
M.Com General – 1st Semester
Subject Name: Corporate Financial Management
Subject code: MCC 103
Spring Drive 2012
4 credits (60 marks)
(BKID: B1469)
Set 1
Answer the following questions. Each question carries 10
marks.
1.
Why are finance functions always placed in the hands of top management?
2.
Why is the NPV method important?
3.
What are the two types of capital rationing?
4.
What are the factors that affect long-term funds?
5.
The following are the costs and values for the firms A and B according to the
traditional
approach:
____________________________________________________________________
A (Rs) B (Rs)
____________________________________________________________________
Total value of firm, V 50,000 60,000
Market value of debt, D 0 30,000
Market value of equity, E 50,000 30,000
Expected net operating income 5,000 5,000
Cost of debt, INT = kd D 0 1,800
Net income, NOI – kd D 5,000 3,200
Cost of equity, ke = ( – kd D)/E 10.00% 10.70%
Debt-equity ratio, D/E 0 0.5
Average cost of capital, ko 10.00% 8.33%
____________________________________________________________________
Compute the equilibrium value for Firms A and B in accordance
with the MM thesis. Assume that (i) taxes do not exist and (ii) the equilibrium
value of ko
is 9.09 per cent.
6.
A firm finances all its investments by 40 per cent debt and 60 per cent equity.
The
estimated required rate of return on equity is 20 per cent
after-taxes and that of the debt is 8 per cent after taxes. The firm is
considering an investment proposal costing
Rs.40,000 with an expected return that will last forever. What
amount (in rupees) must the proposal yield per year so that the market price of
the share does not change? Show calculations to prove your point.
ASSIGNMENTS
M.Com General – 1st Semester
Subject Name: Corporate Financial Management
Subject code: MCC 103
Spring Drive 2012
4 credits (60 marks)
(BKID: B1469)
Set 2
Answer the following questions. Each question carries 10
marks.
1.
AB Ltd needs Rs.10 lakh (one million) for expansion. The expansion is expected
to yield an annual EBIT of Rs.160,000. In choosing a financial plan, AB Ltd has
an objective of maximizing earnings per share. It is considering the
possibility of issuing equity shares and raising debt of Rs.100,000, or Rs.
400,000 or Rs. 600,000. The current market price per share is Rs.25 and is
expected to drop to Rs. 20 if the funds are borrowed in excess of Rs.500,000.
Funds can be borrowed at the rates indicated below: (a) up to Rs.100,000 at 8%;
(b) over Rs 100,000 up to Rs 500,000 at 12%; (c) over Rs 500,000 at 18%.Assume
a tax rate of 50 per cent. Determine the EPS for the three financing
alternatives.
2.
How would you calculate the degree of financial leverage?
3.
A pro forma cost sheet of a company provides the following data:
_______________________________________________________________
Rs.
_______________________________________________________________
Costs (per unit):
Raw materials 52.0
Direct labour 19.5
Overheads 39.0
Total cost (per unit) 110.5
Profit 19.5
Selling price 130.0
_______________________________________________________________
The following is the additional information available:
Average raw material in stock: one month; average materials in
process: half a month. Credit allowed by suppliers: one month; credit allowed
to debtors: two months. Time lag in payment of wages: one and a half weeks.
Overheads: one month. One-fourth of sales are on cash basis. Cash balance is
expected to be Rs1,20,000.
You are required to prepare a statement showing the working
capital needed to finance a level of activity of 70,000 units of output. You
may assume that production is carried on evenly, throughout the year and wages
and overheads accrue similarly.
4.
Explain the merits and dangers of stability of dividends.
5.
Discuss the causes of enhanced profitability.
6.
Compare the pooling of interests method with the purchase method.
ASSIGNMENTS
M.Com General– 1st Semester
Subject Name: Economics for Managers
Subject code: MCC 104
Spring Drive 2012
4 credits (60 marks)
(BKID: B1470)
Set 1
Answer the following questions. Each question carries 10
marks.
1.
Find out the equilibrium quantity from demand function Qd =25-10P and supply function Qs =25P.
2.
Write a short note on each of the following:
i.Promotional elasticity
ii.Income elasticity of demand
3.
Explain the derivation of demand curve.
4.
Prices of cars remain ever fluctuating in the Indian car market. However, as
Tata motor launched the Nano, some changes occurred due to the price effect.
Make a list of these changes and comment on them.
5.
What is a budget line?
6.
Explain long-run cost-output relations.
ASSIGNMENTS
M.Com General– 1st Semester
Subject Name: Economics for Managers
Subject code: MCC 104
Spring Drive 2012
4 credits (60 marks)
(BKID: B1470)
Set 2
Answer the following questions. Each question carries 10
marks.
1.
Critically analyze Chamberlin’s theory of monopolistic competition giving
suitable examples.
2.
Discuss the factors that determine the success of penetration price policy.
3.
How is national income measured in an ‘open’ economy?
4.
What are the assumptions made by the two-sector model?
5.
Identify the causes of corruption in India in today’s scenario. How can the
country overcome this problem?
6.
Do you agree with the traditional theory that assumes profit maximization as
the sole
objective of a business firm? List your arguments in favour of
or against this theory.
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