Course Code : MCS-035
Course Title : Accountancy and Financial Management
Assignment Number : MCA (III)/035/Assignment/2018-19
Maximum Marks : 100
Weightage : 25%
Last Dates for Submission : 15th October, 2018 (For July, 2018 Session)
15th April, 2019 (For January, 2019 Session)
Note: This assignment has five questions. Answer all questions. 20 marks are for
viva voce. You may use illustrations and diagrams to enhance the explanations.
Please go through the guidelines regarding assignments given in the Programme
Guide for the format of presentation.
(a) “Describe various ratios that are likely to help management of a manufacturing
company forming an opinion on the solvency position of business. (10 Marks)
(b) Under what circumstances may NPV and IRR give conflicting recommendations?
Which criteria should be followed in such circumstances and why? (10 Marks)
What is meant by working capital management? What factors would you like to take
into consideration in estimating the working capital requirement of a concern?
Discuss the repercussions if a firm has inadequate working capital. (20 Marks)
Write short notes on the following:
(a) Provision for bad and doubtful debts
(b) Interest on Capital
(c) Provision for discount on Creditors
(d) Treatment of abnormal loss in final accounts (10 Marks)
Following are the balance sheets of a limited company as on 31st December, 2016 and
P & L A/c
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) Rs. 8,000 was paid as dividend during the year.
(b) Depreciation on Furniture was charged Rs. 4000 and on Building, it was Rs.3000.