Ms4 Solved Assignment
IGNOU MBA MS - 04 Solved Assignment 2011
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Course Code : MS - 04
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Course Title : Accounting and Finance for Managers
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Assignment Code : MS-04/SEM - I /2011
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Coverage : All Blocks
Note: Answer all the questions and send them to the Coordinator of the Study Centre you are attached with.
1. Following are the balance sheets of a limited company as on 31st December,
2009 and 2010. Liabilities | 2009Rs. | 2010Rs. | Assets | 2009Rs. | 2010Rs. | Share Capital Reserves P. & L. A/cBank Loan (Long-term)CreditorsBills Payable | 54.00013,0008,60025,00028,0008,000 | 74,00015,5008,800-24,0008,500 | GoodwillBuildingsPlantStockDebtorsCashBank | 3,00050,95035,00025,50022,000150- | 2,52048,00043,00018,80016,2001802,100 | | 1,36,600 | 1,30,800 | | 1,36,600 | 1,30,8 00 |
Taking into account the following additional information, you are required to prepare funds flow statement and statement of change 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.
1. Solution : Statement of Changes in Working Capital
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Effect on WC PY CY Increase Decrease
Current Assets
Stock 25,500 18,800 - 6,700
Debtors 22,000 16,200 - 5,800
Cash 150 180 30 -
Bank - 2,100 2,100 -
Total 47,650 37,280 2,130 12,500
Current Liabilities
Creditors 28,000
-------------------------------------------------
Course Code : MS - 04
-------------------------------------------------
Course Title : Accounting and Finance for Managers
-------------------------------------------------
Assignment Code : MS-04/SEM - I /2011
-------------------------------------------------
Coverage : All Blocks
Note: Answer all the questions and send them to the Coordinator of the Study Centre you are attached with.
1. Following are the balance sheets of a limited company as on 31st December,
2009 and 2010. Liabilities | 2009Rs. | 2010Rs. | Assets | 2009Rs. | 2010Rs. | Share Capital Reserves P. & L. A/cBank Loan (Long-term)CreditorsBills Payable | 54.00013,0008,60025,00028,0008,000 | 74,00015,5008,800-24,0008,500 | GoodwillBuildingsPlantStockDebtorsCashBank | 3,00050,95035,00025,50022,000150- | 2,52048,00043,00018,80016,2001802,100 | | 1,36,600 | 1,30,800 | | 1,36,600 | 1,30,8 00 |
Taking into account the following additional information, you are required to prepare funds flow statement and statement of change 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.
1. Solution : Statement of Changes in Working Capital
====================================
Effect on WC PY CY Increase Decrease
Current Assets
Stock 25,500 18,800 - 6,700
Debtors 22,000 16,200 - 5,800
Cash 150 180 30 -
Bank - 2,100 2,100 -
Total 47,650 37,280 2,130 12,500
Current Liabilities
Creditors 28,000