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Mcs 035 PDF

The document contains 5 questions regarding accountancy and financial management. Question 1 provides a trial balance and asks to prepare trading, profit and loss account and balance sheet. Question 2 provides a balance sheet and asks to calculate liquidity ratio, current ratio, net profit ratio, and debt equity ratio. Question 3 provides information about component usage and asks calculation related to re-order levels, minimum levels, and average stock levels. Question 4 asks to explain the net present value and internal rate of return methods of capital budgeting. Question 5 asks to explain four of the following accounting terms: business entity concept, contingent liabilities, trial balance, objectives of financial management, cash flow statement, and letter of credit.

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285 views3 pages

Mcs 035 PDF

The document contains 5 questions regarding accountancy and financial management. Question 1 provides a trial balance and asks to prepare trading, profit and loss account and balance sheet. Question 2 provides a balance sheet and asks to calculate liquidity ratio, current ratio, net profit ratio, and debt equity ratio. Question 3 provides information about component usage and asks calculation related to re-order levels, minimum levels, and average stock levels. Question 4 asks to explain the net present value and internal rate of return methods of capital budgeting. Question 5 asks to explain four of the following accounting terms: business entity concept, contingent liabilities, trial balance, objectives of financial management, cash flow statement, and letter of credit.

Uploaded by

Nerdy Fella
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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MCS-035: ACCOUNTANCY AND FINANCIAL MANAGEMENT

IMPORTANT QUESTIONS FOR TERM END EXAM by


www.ignousolvedassignment.co.in
Question 1: From the following Trial Balance of M/s Mitra & Co., prepare Trading and
Profit and Loss Account and Balance Sheet for the year ending 31st March, 2014:

Particulars Dr. Cr.


Capital 10,000
Plant and Machinery 4,000
Debtors 2,400
Creditors 1,200
Drawings 1,000
Purchases 10,500
Wages 5,000
Bank 1,000
Repairs 50
Stock (Opening) 2,000
Return Outward 500
Rent 400
Sales 16,400
Manufacturing 800
Expenses
Trade Expenses 700
Bad Debts 200
Carriage 150
Bills Payable 500
Return Inward 400

Total 28,600 28,600

The closing stock was valued at 1,450. Provide for deprecation on plant and machinery
400 and allow 5% interest on capital, 50 is due for repairs.

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Question 2: The following is the Balance Sheet of M/s Kakar & Co. as at 31st March,
2013 :

Liabilities ₹ ASSETS ₹
Creditors 60,000 Cash at Bank 50,000

Bills Payable 1,00,000 Short term investment 1,50,000

Tax Provision 1,30,000 Debtors 2,00,000

Outstanding Expenses 10,000 Stock 3,00,000

6% Debentures 7,00,000 Fixed assets less dep. 13,00,000

8% Preference Shares 1,00,000

Equity Shares 5,00,000

General Reserve 4,00,000

Total 20,00,000 Total 20,00,000

Management of the company has also provided other information which is as


follows :
₹
Opening Stock 4,00,000

Net Sales 30,00,000

Cost of Goods Sold 25,80,000

Net Income Before Tax 2,00,000

Net Income After Tax 1,00,000

You are required to calculate the following :

(i) Liquidity Ratio

(ii) Current Ratio

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(iii) Net Profit Ratio

(iv) Debt Equity Ratio

Question 3: Two components, A and B, are used as follows :

Normal usage 50 units per week each

Minimum usage 25 units per week each

Maximum usage 75 units per week each

Re-order quantity A : 300 units

B : 500 units

Re-order period A : 4 to 6 weeks

B : 2 to 4 weeks

You are required to calculate the following :


(a) Re-order Level
(b) Minimum Level
(c) Maximum Level
(d) Average Stock Level

Question 4: What do you mean by Net Present Value (NPV) method and Internal Rate
of Return (IRR) method of capital budgeting ? Differentiate between them

Question 5: Explain any four of the following :

(a) Business Entity Concept

(b) Contingent Liabilities

(c) Trial Balance

(d) Objectives of Financial Management

(e) Cash Flow Statement

(I) Letter of Credit

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