ignou mca 3rd sam mcs 035 solved assignment

QUESTION NO 1

SOLUTION

TRADING AND PROFIT& LOSS ACCOUNT

(For the year ended on 31 March 1982)

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To opening stock	50000
To purchase	400000	By sales(includes Rs. 4000 being sales under casted)	604000
To wages	40000	By closing stock (Market value 80000)	75000
To gross profit C/d	189000
	679000		679000
To salary	12000	By gross profit B/d	189000
To rent	9000	By Change in depreciation	6160
To Electricity	6000
To general charges	4000
To   discount	11400
To postage and telephone (includes Rs. 1000 for the Telephone bill remain unpaid)	4000
To Petty Cash expenses	9600
To advertising(Rs 6000 is Deferred revenue expenditure& is equally written off for 3 years	5000
To lease hold land (Written off)	4000
To Depreciation	1200
To net profit    C/d	128960
	195160		195160

BALANCE SHEET

(For the year ended on 31 March 1982)

LIABILITIES	AMOUNT      (RS)	ASSETS	AMOUNT      (RS)
Capital fund             34000 Add   Net profit      128960 Less   Drawings     (26000)	136960	Lease hold land Motor car	16000 15200
		Sundry debtors	49000
Sundry creditors	35000	Closing stock	75000
		Cash	6760
Suspense	10000	Bank	17000
Outstanding expenses	1000	Miscellaneous expenses (Differed Revenue expenses)	4000
	182960		182960

Question 2

Solutions

(a)              STATEMENT SHOWING CHANGES IN WORKING CAPITAL

Particulars	2000	2001
(a) CURRENT ASSETS
Stock	25500	18500
Sundry Debtors	22000	16200
Cash	150	450
Bank	-	2100
Total (a)	47650	37250
(b)CURRENT LIABILITIES
Sundry creditors	28000	24000
Bills Payable	8000	8500
Total (b)	36000	32500
Net working capital	11650	4750
Decrease in working capital		5900

(  b)         FUND FLOW STATEMENT

SOURCES OF FUND	AMOUNT	APPLICATION OF FUND	AMOUNT
Fund from operation	12600	Dividend paid	6000
Increase in share capital	20000	Payment of bank loan	25000
Sale of plant	6500	Purchase of plant	14000
Decrease in working capital	5900
	45000		45000

WORKING NOTES

(1)     Adjusted    Profit/ Loss account

Particulars	Amount	Particulars	Amount
To balance b/d	8600
To reserves	2500
To goodwill	750
To dividend	6000	By Fund from operation(bal)	12600
To depreciation	6550
		By profit on sale of plant	3000
		By balance c/d	8800
	24400		24400

QUESTION 3

               I.      LIQUIDITUY RATIOS

           It includes

    

              1.  Current Ratios     =    Current    Assets    

                                                    Current Liabilities

     

For Year 2000=   96000      =  2.52: 1

                             38000

                           

For Year 2001=   68000      =  3.4: 1                                                                               

                             20000

       2.   Quick liabilities   =    Current Assets -  Inventories    

                                               Current Liabilities – Bank ODI

  

                           

     

For Year 2000=   72000      =  1.89: 1

                             38000

                           

For Year 2001=   40000      = 2: 1                                                                              

                             20000

II   INVENTORY RATIOS   

             Formula   = Cost of good sold                                       

                                  Average Stock

             Average Stock  =   (Opening stock+ Closing Stock)/2

     

For Year 2000 =   100000      =  4

                               25000

                           

For Year 2001=   138000      = 6.57

                             21000

III    AVERAGE COLLECTION PERIOD

                   Formula   =    Cost of good sold      *         1

                                         Sundry Debtors                365

     

For Year 2000=   150000   *    1/365  =  146 Days

                             60000

                           

For Year 2001=   184000   *  1/365    = 73 Days

                             36000

IV     OPEARTIN RATIOS

   FORMULA   =    Operating Profit(sales- cost of good sold)

                                                                 Sales

     

For Year 2000=    50000   *100    =  33.33%

                             150000

                           

For Year 2001=    46000  *100      =    25%

                             184000

MCSL-036 –Section 3 – MC0-035

SOLUTION

(a)                              JOURNAL ENDRIES

DATE	PARTICULARS	L/F	DEBIT (RS)	CREDIT (RS)
04/09/2008	Cash account                   DR                                                                                                                                                                                                     Capital Fund   A/C (Being cash introduced to start the hospital business transferred to capital Fund)		500000	500000
08/09/2008	Bank account                    DR         Cash account (Being cash deposited in to bank)		150000	150000
12/09/2008	Equipment account             DR          To Cash Account (Being Equipment costing 200000 purchased)		200000	200000
16/09/2008	Purchase account                D R      To Cash Account (Being drugs purchased to be consumed in hospital)		100000	100000
20/09/2008	Cash Account                     DR       To Fees account (Being Fees amount collected from the patients)		50000	50000
25/08/2008	Salary account                     DR        To Cash Account (Being salary paid to the employees in cash)		100000	100000
30/09/2008	Rent Account                       DR        To Bank Account (Being rent paid to landlord through bank account)		60000	60000

(b)            TRIAL BALANCE

PARTICULARS	DEBIT     (RS)	CREDIT      (RS)
Capital fund		500000
Equipment	200000
Purchases	100000
Fees		50000
Salary	100000
Rent	60000
Bank	90000
TOTAL	550000	550000