IGNOUSOLVEDASSIGNMENTS
IGNOU SOLVED ASSIGNMENTS MCS-035 2014-2015 Accountancy and Financial Management FOR 3RD SEMESTER
Question 1 Explain the role of Ratio Analysis in the interpretation of
financial statements. Examine the limitations of ratio
analysis.
Question 2 Critically examine the various methods of evaluation of
Capital Budgeting Proposals. Discuss their advantages and
limitations.
Question 3 “Inadequate working capital is disastrous whereas redundant
working capital is a criminal waste. Critically examine this
statement.” Discuss.
Question 4 Differentiate between:
a) Trial Balance and a Balance sheet
b) Profit and Loss Account and a Balance Sheet.
Question 5 Following are the balance sheets of a limited company as on
31st December, 2012 and 2013.
Liabilities 2012
Rs. 2013
Rs. Assets 2012
Rs. 2013
Rs.
Share Capital 54,000 70,000 Plant 35000 43,000
P & L A/c 8600 8800 Building 50950 48000
Creditors 28,000 24,000 Stock 25500 18800
Bills payable 8,000 8500 Debtors 22,000 16,200
Bank 25000 …… Goodwill 3,000 2520
Loan(Long
term) 13,000 15,500 Bank …….. 2100
Reserve Cash 150 180
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1,36,600 1,30,800 1,36,600 1,30,800
Taking into account the following additional information,
you are required to prepare funds flow statement and
statement of changes in working capital.
a) Dividends of Rs 6,000 were paid during the year.
b) Rs. 3600 was written off as depreciation on plant and
Rs. 2950 on Building.
c) Profit on sale of Plant was Rs. 3000
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