Note'
1. (a)
Attempt anv
From the following Trial Balance of Mr. Dev and other information, prepare Trading and Profit and Loss account for the year ending 31tt December 2005 and Balance sheet as on that date : Trial Balanceof Mr. Dev as on 31tt Dec 2005 30
Particulars
98,780 680
P.T.O.
Particulars Returns Outward Wages Power and fuel Carriage outward Carriage inward Stock (1.1.2005) Land and Building Machinery Patents Salaries Insurance Drawings Capital Debtors and Creditors
Amount (Rs.)
Amount (Rs.)
500 10,480 4,730 3,200 2,040 60 5,7 40,000 20,000 7,500 18,000 600 5,245 14,500 7L , 0 0 0 6,300
(iii) Unexpired insuranceRs. 85. (iv) Make a provision for doubtful debts @ 5o/o.
MCS-035
(v)
'
F*,
(vi) Commission due for the work done but not receivedRs. 5,000 (vii) Wages include a sum of Rs. 2,000 spent on erection of a cycle stand for employees. (viii) Value of stock as on 31.L2.2AA5 was Rs. 6,800.
70
(iii) Conservatism (iv) Materiality concept 2. (a) (b) "Operations provide funds. " Comment. Name all the internal and extemal sourcesof funds. 10 The following data has been extracted from the annual accountsof a company : 70 (Rs. in Lakhs) (i) Share capital(20,00,000 : 2oo'oo E' sharesof Rs' 10 each) (ii) GeneralReseve : 150.00 50.00 : 300'00 : 140.00 : : 84'00 10.00 (iii) Investment AllowanceReserve : (iv) I5o/olong term loan (v)
t
Profit betoretax
(i) Return on capital empl yed, Calculate' (ii) Return on net worth. MCS-035 P.T.O.
3.
(a) (b)
What are the different types of financial ratios ? 10 Explain the importance of liquidity ratios. A company can invest Rs. 10,000 in a project having a life of three years. The cash flows of the project are as follows : Year 1 2 3 Rs. 4,000 5.000 4,000 :i 10'
The cost of capital is too/o P.A. Should the investment be made ? (Justifyyour answer) 4. (a) "Financial you understand by What do Management" ? Discuss the main tasks and 70 responsibilitiesof a financial manager. Explain the various steps involved in the process of credit evaluation. 5. (a) (b) to, i n
(b)
'working capital'. What Explain the concept of 10 factors determine the quantum of working capital ? A manufacturing company will require 50,000 units of a product during the nexi year. The cost of processingan order is Rs. 20 and the carrying cost per unit is 50 paise per year. Lead time of an order is 5 days and the company will keep a safety stock of two days usage. (Assume 250 days in a year) Calculate (1) EOQ (2) Re-order period (3) Minimum inventory (4) Maximum inventory, and (5) Average inventory. 10 4
r. ',1
MCS.O35
6.
Explain the following giving examples: (i) (ii) Net Current Assetsforecastingmethod Baumol's model
20
MCS-035
12,000