Dr. B.R.

AMBEDKAR OPEN UNIVERSITY

EDUCATION AT YOUR DOORSTEP

Home-Assignment (Academic Year - 2024-25)

Name of the Programme & Prog, Code MBA & 01

Semester Sem - |

Name of the Course & Course Code |ACCOUNTINGFOR MANAGEMENT (10104)

Name of the Student SHAIK ASHWAQ AHMED

Admission No 02324012086

Mobile Number 9392089152 E-nailID ashwaqahmd94@gmail.com

Name of the Study Centre & Code POST GRADUATE COLLEGE.SECUNDERABAD.HYDERABAD,500003 & 023

Date of Submission No of Pages

Start writing Home Assignment form the next line. Write page number on cach page.
This format is developed by BRAOU and it should not be misused. Student signature should be on each page.

Q1.):)sol: Common- Si2e Ihcome Statement(in %ef Net Sale)

Pasticulars d0AO) stAS (:.)
Net Sales l00.D0 I00.DD

|Cost of Gods sol 69.35 68.by ta.86

Goass Poaft 30.65 31.36

opsatirng Expona Q0. 3A Qa. 14

Net opaig aft Io. 32 5.00
Irteseat Expnsts 0.94 0.80 o.89
|Poft Before Tax 9.35 4.64
4.03 3.18 .4
Poovis?on for Taxes

|Poofit after Tax 5.32 6.45

boief Comment:
I, Net Salu increaued frm doao to d but doopped in coea.
Page I of I
satent Signa1re
 DR. B.R. AMBEDKAR OPEN UNIVERSITY

HallTicket No:02324012086 Name: SHAIK ASIW AÌ AUMED Course Code: 01 Assignment No: 2

Course Name: MBA Paper Code: 10104 Paper Name: ACCOUNTING FOR MANAGEMENT

Q.NO.
&. COGhs increased foom doa0 to Dl but appped ?n dONa.
3. COGs ncoeas ed
Paft margin.
4.Both opeating and net pnfit margins decBned ?n soA a,
Showtng.rodua effcteny decine in pfit before tax.
4. Lowertak in aoaa veflect the
5. In concsion, Q0aa shows a dip n fnanctal pefomane,
Indtcating needfpr better cast con tool and Tevenue generation.
Q1. a)) Sol:
I. Cussent Ratio:;
foomula: Curent ASsdi
Cussent Ratio
Cusrent Labi leties
Cusent Assto = stock (aaa4)+ Trade Debto s(2 la4)t CashCE4)
= 73565
Cusrent Liabilties e Poovsfon of Tax (z900) + Trade Creditorsa346)
=}\99b.
Cusent Ratio 3565 l15: 4
J296
a. Quick Ratio CActd- Test Ratio)
Cursent Asset stock
foamula : Quck Roatio = Cument Ltablities

Qutck Ass elo =23565-2 224 213)&

Qutck Ra tio 138 zl:0Q; A
1296

Page 2 of |I
 DR B.R. AMBEDK AR OPENUNINERSITY
Halliket No:02324012086 Name: SUA AsIWAQ AIIMID (ourse Code: 01 Assignment No: 2

ourse ame: MMA 10104 Paper Name: ACCOUNTINGFOR MANAGENMEN

|Paper (ode:
QNO
3.Debt -Equity Ratio
Total Debt
femala: Debt -Eguity Ratio
Shanholder'k Equtty
Total debt =Long-Teom Loans (2b46)
Shareheld e' Eqpthy eEqutty Capttal (21345) + ReeTvaK=Supuly
23963.
(396 3) + Ponftkloss A<c(3154 5)
896
Debt- Equity Ratio =. 3903 z018 4..

4.Pxed ASset Tuormover Ratto

et saley
tomula: Fked SSet Tuonover =
Net fxcd ASsets
Net fixed Ass e4929-Q599 =Q3A4.
be Calculatad unss
(saly not povtd ed; thts atio cannot
Salee fgusu ae kr
krown).
5. Popaietaay Ratio
Rato Shareholderk Fundy
foamala: Psvpaietay Total Ass t
3963 066,
5889

Captal.
&.4.b.)4ol: a) statement of change QDaA (E)Efect on Wc
Partioulau Qoai(a)
Cusent ASset:
56,80b JIncrasein
Jnventoies 60,pDD Funds
^ Decrease in
Debtors 49000 44 400 funds

Page 3ofI Ashu!

dent Signatu
 DR BR MBEDK AR OPENUVI\ERSTTY
Halbket \e04013086 Name: EAR ASIrRAQ AINME D Course(ode: 01 Asignnent Na: 2

CoHrse \ane: MA
Paper Code: l0104 Paper Name: AcCoNTING FOa AN1GEENT

Cument L'ab'lia:
Tade Creditors l6,00D lo, 8DD Decreole in Fund
Bank oveydraft J Decre ase in Fundy
Poovfsfon for Tax 32, DDD 3, D0D n Decreose in Furdy.

’ Net Inrease fn lUosking Capstal = z8,abo (use of Fund)

b) Fundy Fbw statement
Sousce af Funds:
’ Funds fom operabons 1,000
’ sale ot Invutment &, 00D
’ Derease în Ma chfney 2a,000
’ Decoce in Butldirgs 16,p00.
Total e a,o00
Appltcaton of Funds
’ Tntesim Dtvidernd Paida 15,000
’ Thcreae in Wbsking Capital e Z&,200.
Total = fS3,A0D
Weaking lote - Funds fom Opationy Cfoom PL A|e) :
openfng Balan e: 39,0D0
hdd,FYoC Bal fg) =I7pOb
Traryfer to Keuenve (33,0 00) , Provston for Tax (z 9,00o).
Les:
DRidend (15,000)
Clostny Balance =7 36,000.

Page 4ofll kfudent Signature/

 DR. B.R. AMBEDKAR OPEN UNIVERSITY
Mallicket No:02324012086 Name: SHAIK ASIIWA) AIIMID Course Code: 0I Assignment No: 2

Course Name: MBA Paper Code: |0104 Paper Name: ACCOUNTINGFOR MANAGE MENT
Q NO
1.b#) ansi clash cash Flow Statement : It prubes
psindples and dan ce on preparation and'pre entati on of
Cash flous of 'an ontity fo operating actiitieyn veting
actiihy and 4inancal "acti tis for a repn ting peiod
Method1 of Psepantng Caih flow Statement:
itemy
I.Disect Method: The dtrect method preseti the Cash
alected eash Aow and the amounti of tho se
hat
flows deives net cash flows frm perating!
Q. Indect Method: It
sesuts for the yea
acity fom the net
Income roert.
Statbment. opevatirg
Teposted fn the
Financial Reposttng: Ftnandal Deport meons ant
Qa):)ans : Ih other words a fnancol
matte.
Depoot aout monftoythel toana cttony th at have fnancal
sepost ?s about
efcti.
Developmenta tn inandal Reporttng
Repot: The True Blood Raport Com mitee
1. The Touebleod Amescan Insttute of Certfel Publ'c
was fuamed by the the objectives of Fnan ial
Accountantand developed
Aatementi.
Repost (uk) : The tccounting Aete st
a the CopoTeta
of the Institute af Charte 4ccountat n
Com m?tee
pube shed The (ooporata Repst in
England and wals paper Corening the scope and any
(476 as a discuton
fnancial seposti and panspect of Urdertakhy
o4 publebcd
Page 5 ofil Sudent
 DR. B.R. AMBEDKAR OPEN UNIVERSITY
HallTicket No:02240120S6 Namc: SUAIK ASIWAQ AIMED Course Codc: 01 Assignment No: 2

Course Name: MRA 10104 ACCOUNTING FOR MANAGEMENT

Paper Code: Paper Name:
Q NO
" a))ans: tHaamonzation tn Fnancial Repoxting:
tlarmonization means ma?ntafn îng unitoortity
in fnancial actounting princpls and practce at the tnfenation
level. HarmonfzatioH is afmed at reducng diffevenes în
handal Tepoting pocets arund the wotd. The goal
ts to
achiere Sone levelo Companbtly in the way fnandal
tatement are prepared and pruented.
Advantagea f taomonfzatton
Thefrst and most impootant advantage of haomonf zahitn of
’ frnandal
deponting standands issto achtere Complab; lity in
Statemelt.
and savtng as
’ There wtu be increased auditing efeen ey mony
Companis has to wse only one'set of rlporting stahdardy to be
’ Another advantoge wosth anoting ts thetheContteney
objectiv of IFRS
achteved unde FRS au it was `one of
as a single teportiry tandard.
Dsadvantage of tHasmontzation
’Infoomatton wolu be d:fult to obtain frm
domestie
acounting standed.
’Ahothe dsadvantage af tamonfzation fs when there
haononization
exists de/fesent economic envionmert as
Could be Consfolened ueles. changes in
’ The deerenca make ?t dfult to dfsingutth these
foom the eect a etrg fonm
he penfuman rgutrement
of dfferent accountng hamonf zaton
f îrtenatoral
’ his îndi catuthat even evey dference
fs achiwed it wsu be tmpotble to elminate

Page 6ofil
DD
Ashun
Student Signatyfe
 DR, B.R. AMBEDKAR OPEN UNIVERSITY
HallTicket No:02324012086 Name: SHAIK ASHWAQ AHMED Course Code: 01 |Assignment No: 2

Course Name: MIBA Paper Code: 10104 Paper Name: ACCOUNTING FOR MANAGEMENT

|d-b) i)ans: Acounting Standasds vs Prindples:

Basis Aco urttn g Pin ples Atcownting standardy
De;initonBrvad gudetneu for vo Specf;e alt, issud by
Tequlatoy bod'es.
-rding"and sepoting
Nature Conaphial ad theoretial Pactcal and segudatony
|Authovty Developed thaugh practita ISSued by lcAl, 1ASB to.
and aceptane Less fletble;oben
|Flodb:ly More fletble and lniaper.
-tative mandatoy
cbjechive Paovrde a famewosk Enure Conts teny and
for accounting Caporabilty
Advanta¡ o, 4 Acowntng standardy
L.Unifomi
4. Tranapatorty
3.Com parabi i'ty
4. Credibity
5. Pofesional Benchmark.
L'mitattons ofaf Accounttng Atandandy
nede of evoy bus?ness.
LKigidity: May not Sutt the unigue
a. Omploty Technical language on be hand to interpret, apetaly
fos Amall fms
3. Complsance : Inplementation Can be expens've for sMEs.
4. Lagin Upau: May not Kap up with zapity changtng
business envi0n menti.

5. Limtted Tudqement:Restica pafesston al d'scsetien in

Cestain Cases.

Page 7 ofll
Ashug,
Stùdent Signatye,
 DR. B.R. AMBEDKAR OPEN UNIVERSITY
HallTicket No:02324012086 Name: SHAIK ASHWAQ AUMED Course Code: 0| |Assignment No: 2

|Course Name: MBA 10104 Paper Name: ACCOUNTING FOR MANAGEMENT

Paper Code:
QNO.
b. ti) ans: Intenatonal inandal Reportirg standards CIFR)
IFRS ?S a Set of acoun ting standands davelped
an fndependnt, not-for-proftt organtation aled the
Totenatonal Accounttn standands baard [zAsa) .The goal of
IFRS iS to poride a global frameuoork for hoo publc
Companies pöepare and dsclosce their ftnancfal statemerti.
Benetctaaies of Conveaqence wtth IFRS
1. Tnvestoxs
a. Indus try
3.Accounting Paufesstonal
4. Corporate woald.
5. Econom
Challengs in Implemattbon of *s IFRS tn India
1. lack of twasenes about Trtenation al pracices.
the pa.lewio nals
Q. The big ut hurdle fortraintng implementiy
TPRS S the lack of faclhee and acacdem?el
Cource on IRS în Ihda
may
8. Tt fs obserred that Implementation of IFRS exising
eult in a number af fnconststencies wfth the
laws ohtch incude the sEBI Negulations, Ban king lauis
and regulations to
4. The dsclosure and repo rng regse menti under
IFRS ae Completey dfeser't foom the Indlan
Reporting regise mers. Companie would hav to ensure
extstng bisi nes uportng modal is
ensure hatt the exfsing
to suit the eporting reurenent of IFRS.
amended tb
Page 8 of l 1
 DR. B.R. AIBEDKAR OPEN UNIVERSITY
IlallTicket No:02124012086 Name: SHAIK ASIWAQ AHMLD Course Code: 01 Assignment No: 2

(ourse Name: MBA Paper Code: 10104 Paper Name: ACCOUNTING FOR MANAGEMENT

oo 3.a):)4ol: Tsend Pexcertage Foornula?

Toend y Bgure of the Veas
Flgure af basc year (a0sn)
Toend Peertages Table (Base yzas : 2020 =l00% )
Pasiculars 019
Cash 50 160
Br,Recetvable 50
Debtors (66.7
Stock l0o
100
Fynite 1DD

Machney
Bufldt nqs l00
|0D
(20

(00 IDO

Prefevence Capital 50
Resesres
10D 150
Coeditors
(00
BUs paygbe
Commenta:
Cash and receivable, fncreas ed ’ better lqddity.
’ Capttal and seseves Stoorger fnaneial base
Creditors reducad mpzo ved babz tywth.managament
’ Over all tsend Poste Bustnen Grao

Page 9 of II
D
 DR. B.R. AMBEDKAR OPEN UNIVERSIIY

HallTicket No:023240120S6 Name: SHAIK ASHIW AO \IMID Course(ode: 01 Asigument No; 2

Course Name: MBA |Paper Code: l0104 Paper Name: ACCOUNTINGTOR AMAN AG MINI

Q NO
3.a)) 4ol: Comparative Balance shee b
Pasticulars obsolute change
Equity share Capttal 1500 1500

9% Psef. Shaxe Captal 750 750

500 +5DD

Il/, De bentury
Coeditors 375 500 tl5
Blu Payable 475
PsoviSion for Taxation 50 50
Total Lfabiltiy 3150 4450 t700

Land k Butlatngs 1000

Plantk Mactheoy 900 850

Funttre 300 360 +60
Stock 450 750 +300
Debtoos 800 900 t100
Bs Recei vable 400 +/56
Bank 50 190
Total -Assetg 3750 +700

Comment!
The company ' rUenve dat doubled, shooirg împoved
poofftabflity. Curlnt tablhies and Cuorent anets both
incoeered,tndteating bigher bustnen achity Cash and
veesvablu ose stgHt ftanty 4efecty staorg yulaliygt
fal tn plant Mahineny may
my be du t depredatfor. oeral,
financtal postion mpoveg ?n 0QQ.
Page 10 of 11
Ashy
Kudent Signalye/
D
 DR. B.R. AMBEDKAR OPEN UNIVERSITY
Halllicket No:023240120S6 Name: SHAIK ASIWAQ AHMED Course Code: 01 Assignment No: 2

Course Name: MBA Paper Code: 10104 |Paper Name: ACCOUNTING FOR MANAGEMENT

Q NO.
3.b) ans Final Ac counti of Musaltk Co Ltd for year en ded on
3/st March, Qoaa.
Tadtng k Ponftt k Loss hecount foa he yea ended 31st March,oo24
Dr
Pastculay AmowntcE) Pavthculas mont(E)
To qperfng stock Çb,o00 By sale
SDo
|T pirchde l,S0,QSD Les saley retuns
Less: Reisny b00 Net saly
To Net purchses I,49,6sD
5000
to wages (tncd, Qutsandiy 3o,000 By closing stock
lo Feight| Trade Expens &4o
To

7o Rent, Ratiu eIruurance 3,8D0

o Prnfeuional chasgs
To Deprecation 935
To Bad debtsPoDvSions
Neuw Q800

To Poovi sion for d sco unt

on Debtoss

To Discount Allowed 6,300

To Inteest on 5,t00
Cap'tal
To Net Popfit ld 3,455
Total 83,420 Total &83,8aO

Page 11 of l l Student Signature