ASSIGNMENT
Course Code : MS - 4
Course Title : Accounting and finance for managers
Assignment Code : MS-4/TMA/SEM - I /2012
Coverage : All Blocks
Note: Answer all the questions and submit this assignment on or before April 30, 2012, to the coordinator of your study center.
1. The Balance Sheet of Bharat Machinery Ltd., as on December 31, 2009 and 2010 are as follows:
Items Dec. 31, 2009
Rs. Dec. 31, 2010
Rs.
Assets
Plant and Machinery 5,00,000 8,00,000
Land and Buildings 80,000 1,20,000
Stock 1,00,000 75,000
Sundry Debtors 1,50,000 1,60,000
Cash 20,000 20,000
8,50,000 11,75,000
Liabilities and Capital
Share Capital 5,00,000 7,00,000
Profit and Loss A/c 1,00,000 1,60,000
General Reserve 50,000 70,000
Sundry Creditors 1,53,000 1,90,000
Bills Payable 40,000 50,000
Outstanding Expenses 7,000 5,000
8,50,000 11,75,000
Additional Information
(i) Depreciation of Rs. 50,000 has been charged on Plant and Machinery during the year 2010.
(ii) A piece of machinery was sold for Rs. 8,000 during the year 2010. It had cost Rs. 12,000, depreciation of Rs. 7,000 had been provided on it.
Prepare a schedule of change in working capital and a statement showing the sources and application of funds for the year 2010.
2. From the following cost, production and sales data of Decors Motor Ltd., prepare comparative income statement for three years under (i) absorption costing method, and (ii) marginal costing method. Indicate the unit cost for each year under each method. Also evaluate the closing stock. The company produces a single article for sale.
Particulars Year
2008 2009 2010
Selling Price per unit 20 20 20
Variable manufacturing cost per unit 10 10 10
Total fixed manufacturing cost 5000 5000 5000
Opening Stock (Units) - - 500
Units Produced 1000 1500 2000
Units Sold 1000 1000 1500
Closing Stock (Units) - 500 1000
3. From the following information related to XYZ Ltd.; you are required to find out (a) contribution (b) Break-even point in units (c) Margin of safety, (d) Profit
Total Fixed Costs Rs. 6,000
Total Variable Costs Rs. 20,000
Total Sales Rs. 32,000
Units Sold 4,000 Units
Also calculate the volume of sales to earn profit of Rs. 12,000.
4. Write short notes on the following:
a) Performance budgeting
b) Zero base budgeting
c) Factors affecting dividend decisions
d) Accrual concept
5. What is capital structure? Explain the features and determinants of an appropriate capital structure.
Course Code : MS - 4
Course Title : Accounting and finance for managers
Assignment Code : MS-4/TMA/SEM - I /2012
Coverage : All Blocks
Note: Answer all the questions and submit this assignment on or before April 30, 2012, to the coordinator of your study center.
1. The Balance Sheet of Bharat Machinery Ltd., as on December 31, 2009 and 2010 are as follows:
Items Dec. 31, 2009
Rs. Dec. 31, 2010
Rs.
Assets
Plant and Machinery 5,00,000 8,00,000
Land and Buildings 80,000 1,20,000
Stock 1,00,000 75,000
Sundry Debtors 1,50,000 1,60,000
Cash 20,000 20,000
8,50,000 11,75,000
Liabilities and Capital
Share Capital 5,00,000 7,00,000
Profit and Loss A/c 1,00,000 1,60,000
General Reserve 50,000 70,000
Sundry Creditors 1,53,000 1,90,000
Bills Payable 40,000 50,000
Outstanding Expenses 7,000 5,000
8,50,000 11,75,000
Additional Information
(i) Depreciation of Rs. 50,000 has been charged on Plant and Machinery during the year 2010.
(ii) A piece of machinery was sold for Rs. 8,000 during the year 2010. It had cost Rs. 12,000, depreciation of Rs. 7,000 had been provided on it.
Prepare a schedule of change in working capital and a statement showing the sources and application of funds for the year 2010.
2. From the following cost, production and sales data of Decors Motor Ltd., prepare comparative income statement for three years under (i) absorption costing method, and (ii) marginal costing method. Indicate the unit cost for each year under each method. Also evaluate the closing stock. The company produces a single article for sale.
Particulars Year
2008 2009 2010
Selling Price per unit 20 20 20
Variable manufacturing cost per unit 10 10 10
Total fixed manufacturing cost 5000 5000 5000
Opening Stock (Units) - - 500
Units Produced 1000 1500 2000
Units Sold 1000 1000 1500
Closing Stock (Units) - 500 1000
3. From the following information related to XYZ Ltd.; you are required to find out (a) contribution (b) Break-even point in units (c) Margin of safety, (d) Profit
Total Fixed Costs Rs. 6,000
Total Variable Costs Rs. 20,000
Total Sales Rs. 32,000
Units Sold 4,000 Units
Also calculate the volume of sales to earn profit of Rs. 12,000.
4. Write short notes on the following:
a) Performance budgeting
b) Zero base budgeting
c) Factors affecting dividend decisions
d) Accrual concept
5. What is capital structure? Explain the features and determinants of an appropriate capital structure.
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