Dear students get fully solved SMU MBA assignments Send your semester & Specialization name to our mail id : “ help.mbaassignments@gmail.com ” or Call us at : 08263069601

1. Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call us at : 08263069601
ASSIGNMENT
DRIVE FALL 2016
PROGRAM MANAGEMENT PROGRAM
SUBJECT CODE & NAME MS-04 Accounting and Finance for Managers
SEMESTER I
BK ID MS-04/TMA/SEM-I/2016
CREDITS 4
MARKS 60
Note: Attempt all the questions and submit this assignment on or before 30th April, 2016 to the
coordinator of your study centre.
Question1. “Accountancy is an Information System”. Do you agree?
Substantiate your answer with reasons. How does an Accountant help in
planning and controlling a large commercial organization? Explain.
Answer – Yes, I agree that“Accountancy is an Information System”. The main reason behind the
statement is that it is a subset of management information system (MIS). Accounting Information
System,alsoknownasAIS, is responsible for providing timely and accurate financial and statistical
reports for internal management decision making, and for external parties such as creditors,
investors, and regulatory and taxation authorities.
Importance of Accounting Information Systems
There isan importance forstudyingAccountingInformationSystem. Anyone pursuing an accounting
careermust study and understand accounting information systems (AIS) and the related concepts.
No matterwhichparticularcareer path is chosen within accounting, it will in some manner involve
the use of an accounting information system. Accountants have several possible roles related to
accountinginformationsystems:Theymaybe usersof the AIS,part of the designorimplementation
team of an AIS, and/or auditors of AIS.
An informationsystemisaformal process for collecting data, processing the data into information,
and distributingthatinformationtousers.The purpose of anaccountinginformation system (AIS) is
to collect, store, and process financial and accounting data and produce informational reports that
managers or other interested parties can use to make business decisions. Although AIS can be a
manual system, today most accounting information systems are computer-based.
Parts of an Accounting Information System

2. An accounting information system typically has six basic parts:
1. People who use the system, including accountants, managers, and business analysts
2. Procedure andinstructionsare the waysthat data are collected,stored, retrieved, and processed
3. Data including all the information that goes into AIS
4. Software consists of computer programs used for processing data
5. Information technology infrastructure includes all the hardware used to operate the AIS
6. Internal controls are the security measures used to protect data
The Reliability of Accounting Information Systems
Because AISstoresandprovidessuchvaluable business information, reliability is vitally important.
There are five basic principles important to AIS reliability:
1. Security - Access to the system and its data is controlled and limited only to those authorized.
2. Confidentiality - The protection of sensitive information from unauthorized disclosure.
3. Privacy - The collection,use,anddisclosureof personal informationaboutcustomersisdone in an
appropriate manner.
4. Processing integrity - The accurate, complete, and timely processing of data done with proper
authorization.
5. Availability - The system is available to meet operational and contractual obligations.
As we know accountant plays a vital role in organization. Accountant provides us exact and true
picture of the financial position in the firm, through which owner can draw a true and fact figure of
financial positionsof theirfirm.Withthe helpof accountant, we can know the actual profit and loss
of the company.
An Accountant helpsinplanningand controllinga large commercial organization in following way-
(i)Maintenance of business records. All financial transactions are recorded in a systematic manner
in books of accounts so that there is no need to rely on memory. It is not possible for any human
being to remember all what happened in daily operations of a business.
(ii) Preparation of financial statements. Systematic records enable the accountant to prepare the
financial statements-tradingandprofitand lossaccountto calculate profit or loss during a particular
accounting period and balance sheet to state the financial position of the business on a particular
date. Profit is a measure of the successful running of thel business.
(iii) Comparison of results. Systematic maintenance of business records enables the accountant to
compare profit of one year with those of earlier years to know the significant facts about the
changes. This helps the business to plan its future affairs accordingly.
(iv) Decision-making.Forday-to-daysolvingof anumberof problemslike whatshouldbe the selling
price of goodsproduced?Whetherapart shouldbe made inthe factory or purchased from outside?
etc., the accountant helps the management by providing the relevant information.
(v) Good evidence incourts. Recordsof businesstransactionsare treatedassatisfactoryevidence in
courts of law.
(vi) Planning and control operations. Planning operations like sales, productioncash requirements
for next accounting periods are achieved with the help of accounting information and estimates
based on that information. Management is also interested in observing that the operations in the
businessare goingonaccordingto planand all the departmentsare spendingwithintheirprescribed
limits.

3. Question2. The following are the Balance Sheets of XYZ Ltd. for the years
ending 31st December, 2014 &2015 .
Particulars 2014 (Rs.) 2015 (Rs.)
Liabilities
Equity Share Capital
Preference Share Capital
Reserves
Profit and Loss a/c
Bank overdraft
Creditors
Provision for taxation
Proposed Dividend
Total
2,00,000
1,00,000
20,000
15,000
50,000
40,000
20,000
15,000
4,60,000
3,30,000
1,50,000
30,000
20,000
50,000
50,000
25,000
25,000
6,80,000

4. Fixed Assets
Less: Depreciation
Stock
Debtors
Bills Receivable
Prepaid expenses
Cash in Hand
Cash at Bank
Total
2,40,000
40,000
1,00,000
20,000
10,000
40,000
10,000
4,60,000
3,50,000
50,000
1,25,000
60,000
12,000
53,000
30,000
6,80,000
Prepare the comparative balance sheet and study its financial position.
Answer- Comparative balance sheet and its financial position.
Equity and Liability
Amount
2014
Amount
2015
Jan/Dec % Jan/Dec

5. Amount
2014
Amount
2015
Jan/Dec % Jan/Dec
Question3. ABC Ltd. maintains their books of Cost Accounts under standard
costing systeminwhichthe work-in-progressis debitedwithactual costs and
credited with standard costs. The standard cost card for product X shows:
Cost per unit (Rs.)
Direct material 1pc @ Rs. 1.501.50
Direct labour3hrs @ Re. 1.003.00
Factory overhead 3 hrs.@Rs. 2.50 7.50
(to be charged to product X)
Production data
Units completed 950 units
Units in closing WIP 100 units 50% completed
Cost of units remaining work- in- progress Account is transferred to work- in-
progress Inventory Account. You are required to compute all possible
variances
Answer –
(i) Material price variance – (A R – S R ) X Actual Consumption
( 1.60 – 1.50 )X 1100
= 110 A
Question 4. As a Manager what strategy you will adopt so that you are able
to efficiently manage the cash in business?
Answer - Cash management is a broad term that refers to the collection, concentration, and
disbursement of cash. The goal is to manage the cash balances of an enterprise in such a way as to
maximize the availability of cash not invested in fixed assets or inventories and to do so in such a
way as to avoid the risk of insolvency. Factors monitored as a part of cash management include a
company's level of liquidity, its management of cash balances, and its short-term investment
strategies.
In some ways, managing cash flow is the most

6. Question 5. Visit an organization of your choice and find out the investment
appraisal methods that the organization follows. Write a note on your visit.
Answer - Introduction to the company (The Jai Bharat Machine Tools Ltd)
The Jai Bharat Machine Tools Ltd. was established in 1971. To start with, 500 workers, 35
Techniciansand15 technical officerswere workinginthe company.Atpresentthe total strengthhas
gone to 3000 workers 150 technicians and 30 officers.
The Jai Bharat Machine tools usually get 2 or 3 projects every year I visited its head office to find
how they appraise the investments before starting any project.
I found that they were using many methods for investment appraisals. I will explain the methods
which they are as follows:
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call us at : 08263069601