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1. Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call us at : 08263069601
ASSIGNMENT
Course Code : MS-04
Course Title : Accounting and Finance for Managers
Assignment Code : MS-04/TMA/SEM-I/2018
Coverage : All Blocks
Note : Attempt all the questions and submit this assignment on or before 30th April, 2018 to the
coordinator of your study center.
Question. 1. How is ‘Financial Accounting’ different form
‘Management Accounting’? Discuss the role and activities of an
Accountant.
Answer: Financial and management accounting are both important tools for a business, but serve
differentpurposes.A businessusesaccountingtodetermineoperational plansin the future,toreview
past performance and to check current business functions. Management and financial accounting
have different audiences, as investors are not usually involved in the day-to-day operations of the
business but are concerned about their investment, whereas managersneed information quicklyto
make daily business decisions
Question. 2. The Balance Sheets of XYZ Ltd as on 31st December,
2016 and 2017 are as given below:
Additional Information:-
(i) Depreciation provided on plant was 8,000 and on building was Rs. 8,000.
(ii) Provision for taxation made during the year is Rs. 38,000.
Liabilities 2016 2017 Assets 2016 2017
Share Capital 2,00,000 2,00,000 Goodwill 24,000 24,000
General Reserve 28,000 36,000 Buildings 80,000 72,000
Profit and Loss Account 32,000 26,000 Plant 74,000 72,000
Creditors 16,000 10,800 Investments 20,000 22,000
Bills Payable 2,400 1,600 Stock 60,000 46,800
Provision for Taxation 32,000 36,000 Bills Receivable 4,000 6,400
Provisionfor doubtful debts 800 1,200 Debtors 36,000 38,000
Cash and bank balance 13,200 30,400
3,11,200 3,11,600 3,11,200 3,11,600
2. (iii) Interim dividend paid during the year is Rs. 16,000.
Fromthe above information,youare requiredtoprepare Scheduleof changesinWorkingCapitaland
Funds Flow Statement.
Answer:A Balance Sheetisastatementof the financial positionof abusinesswhichstatesthe assets,
liabilities,andowners'equityataparticularpointintime.Inotherwords,the balance sheet illustrates
your business's net worth.
Question. 3. What do you understand by CVP Analysis. Explain the
effect of Price and Volume on the Net Profit, with the help of a
suitable illustration.
Answer: Cost-volume-profit (CVP) analysis is used to determine how changes in costs and volume
affect a company's operating income and net income. In performing this analysis, there are several
assumptions made, including:
Sales price per unit is constant.
Variable costs per unit are constant.
Question. 4. The Management of ABC Ltd. is considering a proposal
to purchase an improved model of a machine which gives increased
output. Its existing machine which has been in operation for 2 years
has current market value of Rs. 1,00,000, its remaining estimated
useful life is 10 years, with no salvage value at the end.
The relevant particulars are as follows:
The company follows the straight-line method of depreciationand is subject to 50% tax. Should the
existingmachine be replaced?Assumethatthe company’srequiredrate of returnis15% andthat the
loss on sale of Assets is tax deductible.
Existing Machine New Machine
Purchase price Rs.2,40,000 Rs.4,00,000
Estimated life 12 years 10 years
Salvage value - -
Annual Operating hours 2,000 2,000
Selling price per unit Rs.10 Rs.10
Output per hour 15 units 20 units
Material cost per unit Rs.2 Rs.2
Labour cost per unit 20 40
Consumable stores per year 2,000 5,000
Repairs and Maintenance per year 9,000 6,000
Working Capital 25,000 40,000
3. Answer: There are two possible treatments about the provision for taxation:
1. Provisionfortaxationcanbe treatedas a currentliabilityanditwill decrease the workingcapital in
the schedule of changesinworkingcapital.However, paymentof tax doesnot affectworkingcapital
because it involves both current asset and current liability account, i.e.,payment decreases cash or
bank balance on the one hand and decreases the current liability (tax provision) by the equivalent
amount on the other hand.
Question. 5. As a Finance Manager how would you determine the
Optimal Cash balance that would be required by your Organisation?
What measures you would take to ensure the smooth and efficient
Management of Cashflows in the Orgnisation?
Answer:Businessanalystsreportthatpoormanagementisthe mainreasonforbusinessfailure.Poor
cash management is probably the most frequent stumbling block for entrepreneurs. Understanding
the basic concepts of cash flow will helpyou plan for the unforeseen eventualities that nearlyevery
businessfaces.Below,youwill findusefulinformationregardingthe importance of cashmanagement
for your small business.
Cash vs. Cash Flow
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
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