Ms04

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IGNOU MBA MS - 04 Solved Assignment 2011

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.

Following are the balance sheets of a limited company as on 31st December,

2009 and 2010.

Liabilities | 2009 Rs. | 2010 Rs. | Assets | 2009 Rs. | 2010 Rs. |

Share Capital Reserves P. & L. A/c Bank Loan (Long-term) Creditors Bills Payable | 54.000 13,000 8,600 25,000 28,000 8,000 | 74,000 15,500 8,800 - 24,000 8,500 | Goodwill Buildings Plant Stock Debtors Cash Bank | 3,000 50,950 35,000 25,500 22,000 150 - | 2,520 48,000 43,000 18,800 16,200 180 2,100 |

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.

Solution : Statement of Changes in Working Capital====================================                                                               Effect on WC                                  PY        CY              Increase     Decrease Current AssetsStock                       25,500     18,800      -                  6,700Debtors                  22,000    16,200     -                   5,800Cash                              150           180            30              -Bank                                  -        2,100       2,100             -      Total                        47,650    37,280       2,130       12,500  Current LiabilitiesCreditors                28,000     24,000    ...