MS-04

Management Programme

ASSIGNMENT FIRST SEMESTER 2014

MS - 04: Accounting and Finance for Manager

Sc!oo" of Management Studie IN#IRA GAN#$I NATI%NA& %PEN 'NI(ERSIT) MAI#AN GAR$I* NE+ #E&$I , 110 0-.

ASSIGNMENT /our e /ode /our e Tit"e A ignment /ode /o1erage : : : : MS-04 Accounting and Finance for Manager MS-040TMA0SEM-I02014 A"" 2"oc3

Note : Attempt all the questions and submit this assignment on or before 30th April, 2014 to the coordinator of your study center. 1. a) istinguish bet!een "e#enue e$penditure and %apital e$penditure. &o! are they treated !hile preparing the final accounts' (f by mista)e the accountant of a firm treats a capital e$penditure as re#enue e$penditure, ho! !ill it affect the final accounts of the firm' *i#e an e$ample. b) +hy is depreciation charged' ,$plain the t!o methods of charging depreciation. (n !hich method the #alue of the asset is reduced to -ero earlier. +hich one is more rational' ,$plain !hy' 2. 3. +hat is meant by appropriate capital structure' iscuss the determinants and features of an appropriate capital structure for a corporate body. ,$plain the important determinants of the +or)ing %apital needs of a firm. %an t!o firms !ith different +or)ing %apital achie#e the same amount of sales' (f so, e$plain ho!.

4. a) +hat do you understand by .udgetary %ontrol' &o! is it e$ercised' +hat steps should be ta)en for installing a .udgetary %ontrol /ystem in an organi-ation' iscuss. b) +hat is "olling .udget' &o! does it differ from fle$ible .udget' +hat purpose do these budgets ser#e' 0. 1ollo!ing are the balance sheets of a limited company as on 31st 2001. 2iabilities /hare %apital "eser#es 6. 7 2. A8c .an) 2oan :2ong;term) %reditors .ills 6ayable 2000 "s. 04,000 13,000 5,900 20,000 25,000 5,000 1,39,900 2001 "s. 34,000 10,000 5,500 ; 24,000 5,000 1,30,500 Assets *ood!ill .uildings 6lant /toc) ebtors %ash .an) ecember, 2000 and 2001 "s. 2,020 45,000 43,000 15,500 19,200 150 2,100 1,30,500

2000 "s. 3,000 00,400 30,000 20,000 22,000 100 ; 1,39,900

<a)ing into account the follo!ing additional information, you are required to prepare funds flo! statement and statement of change in !or)ing capital. :a) i#idend paid !as "s. 9,000. :b) "s. 3,900 !as !ritten off as depreciation on plant and "s. 2,400 on buildings. :c) 6rofit on sale of plant !as "s. 3,000.