Question Paper Code : 3624

M.Com. (Semester-II) Examination, 2018

APPLIED ECONOMICS
( Accounting for Financial Decision )
Time : Three Hours] [Maximum Marks : 70

Note : Answer five questions in all. Question No.1 is

compulsory. Besides this, one question is to be
attempted from each unit.

uksV % dqy ik¡p iz'uksa ds mÙkj nhft,A izFke iz'u vfuok;Z gSA blds
vykok] izR;sd bdkbZ ls ,d iz'u fd;k tkuk gSA
1. Answer/Solve the following questions : [3x10=30]

fuEufyf[kr iz'uksa ds mÙkj@gy nhft, %

(a) Explain liquidity ratios by giving examples

mnkgj.k nsrs gq, rjyrk vuqikrksa dks le>kb,A

(b) Explain the three motives for holding inventory.

jgfr;k dks j[kus ds rhu mn~ns';ksa dks Li"V dhft,A

3624/1000 ( 1 ) [P.T.O.]

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 (c) Explain the motives of cash holdings.
udn j[kus ds mn~ns';ksa dks le>kb,A
(d) State the difference between financing and
investing activities with examples.
mnkgj.k nsrs gq, foÙk iks"k.k rFkk fuos'k fØ;kdykiksa esa
vUrj crkb,A
(e) What is sound dividend policy ?
,d dEiuh ds ikl #- 5,00,000 dh lEifÙk ,oa 50,000 ds
vnÙk lerk va'k izR;sd #- 10 dk gSA og 15% fofu;ksx ij
izR;k; vftZr djrh gS rFkk dqy vk; dk 50% izfr/kkfjr djus
dh uhfr gSA ;fn dEiuh dh mi;qDr NwV nj 10% gS] rks va'kksa
ds ewY; dk fu/kkZj.k xksMZu ekWMy dk iz;ksx djrs gq, dhft,A
;fn dEiuh dk isvkmV (payout) 80%] 60% ;k 70% gks rks
dher D;k gksxh \
----- x -----

lqn`<+ ykHkka'k uhfr D;k gS \

(f) Write any three uses of fund-flow statement.

dks"k izokg fooj.k ds fdUgha rhu mi;ksxksa dks fyf[k,A

(g) Explain any three approaches of financing
working capital requirement of firm.

,d QeZ dh dk;Z'khy iwt¡ h dh vko';drkvksa ds foÙk&iks"k.k

gsrq fdUgha rhu n`f"Vdks.kksa dks le>kb,A
(h) From the following information, calculate market
price per share as per Walter's Model :

fuEufyf[kr lwpukvksa }kjk okYVj fof/k ds vuqlkj izfr

va'k cktkj ewY; dh x.kuk dhft, %

3624/1000 ( 2 ) 3624/1000 ( 15 )

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 (e) Interest of Rs. 30,000 is to be paid in June and Total Earnings
Rs. 2,00,000
Rent of Rs. 8,000 is to be paid every month. dqy vk;
No. of equity share of Rs. 100
Rs. 20,000
#- 30,000 dk C;kt twu esa ns; gS ,oa fdjk;s dk #- each

8,000 izfrekg fn;k tkuk gSA #- 100 izfr lerk va'kksa dh la[;k
Dividend paid
Rs. 1,50,000
UNIT-IV @ bdkbZ&IV ykHkka'k pqdrk
Price/Earning Ratio
Rs. 12.5
8. "Financial management can use dividend policy to ewY;@vk; vuqi kr
maximise the wealth position of equity holders". Explain
(i) Calculate capital gearing ratio from the following:
in detail the above statement with reference to the
determinants of dividend policy. [10] fuEukafdr ls nfUrdj.k vuqikr dh x.kuk dhft, %
^^foÙkh; izcU/k lerk/kkfj;ksa dh lEink fLFkfr dks vf/kdre Capital employed :
yxk;h xbZ iw ¡th %
djus ds fy, ykHkka'k uhfr dk iz;ksx dj ldrk gSA** foLrkj ls
Equity Share Capital
mDr dFku dh O;k[;k ykHkka'k uhfr ds fu/kkZjdksa ds izfjizs{; esa lerk va'k iw¡t h Rs. 4,00,000
dhft,A Reserve and Surplus
lafpr ,oa vkf/kD; Rs. 4,40,000
9. A Company has total investment of Rs. 5,00,000 assets 12% Debentures
and 50,000 outstanding equity shares of Rs. 10 each. It Rs. 12,00,000
12% _.ki=
earns a rate of 15% on investments and has a policy of 10% Pref. Share Capital
Rs. 3,60,000
retaining 50% of the earnings. If the appropriate 10% vf/keku va 'k iw¡ th
24,00,000
discounting rate of the company is 10%, determine the
price of share using Gordon Model. What shall happen (j) Rama India Ltd. has a standard deviation of
to the price, if the company has a payout of 80%, 60% or monthly net cash flows of Rs. 200. Its transaction
70% ? [10] cost of converting cash into marketable securities

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 is Rs. 10 and the interest is 1% per month. The udn foØ; dqy foØ; dk 25% gS vkSj 'ks"k 75%
minimum cash balance required is Rs. 100. Set m/kkj foØ; gSA m/kkj foØ; dk 60% foØ; ds ckn
out the upper, lower and return limit for the firm okys ekg esa 'ks"k 30% rFkk 10% mlds ckn ds vkxkeh
by using M.O. model. nks ekg esa ,df=r gksrk gSA
jkek bf.M;k fy- ds ekfld 'kq) jksdM+ izokg dk izeki (c) Sales forecast are as follows :
fopyu #- 200 gSA blds jksdM+ ls cktkjh izfrHkwfr;ksa foØ; iwokZuqeku fuEu gS %
esa ifjofrZr djus dh lapkyu ykxr #- 10 rFkk C;kt
1% izfr ekg gSA fuEure~ vko';d jksdM+ 'ks"k #- 2018 Rs. 2018 Rs.
March 16,00,000 June 8,00,000
100 gSA ,e-vks- fof/k dk iz;ksx djrs gq, QeZ ds fy,
April 6,00,000 July 12,00,000
mPp] fuEu ,oa izR;k; lhek fu/kkZfjr dhft,A May 8,00,000 August 10,00,000

UNIT-I @ bdkbZ&I (d) Anticipated purchases and wages are as

2. Explain the uses of preparing cash-flow statement. follows :

Illustrate indirect method of preparing cash-flow izR;kf'kr Ø; ,oa etnwjh fuEu gS %

statement according to IAS-7 with suitable example. [3+7]
Purchases (Rs.) Wages (Rs.)
jksdM+ izokg fooj.k cukus ds mi;ksxksa dh O;k[;k dhft,A 2018
Ø; ¼#-½ etnwjh ¼#-½
IAS-7 ds vuqlkj jksdM+ izokg fooj.k cukus ds vizR;{k May
6,40,000 1,60,000
fof/k dks mi;qDr mnkgj.k }kjk le>kb,A ebZ
June
3. XYZ Company's financial statements contain the following 9,60,000 2,00,000
twu
information : [10] July
8,00,000 2,00,000
tqykbZ
XYZ dEiuh ds foÙkh; fooj.k esa fuEukafdr lwpuk,¡ lfEefyr
August
gSa % 6,40,000 1,60,000
vxLr
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 (c) Debentures were redeemed for Rs. 49,000.

_.ki=ksa dk 'kks/ku #- 49,000 ij gqvkA

Particulars fooj.k Year-I Year-2
UNIT-III @ bdkbZ&III o"kZ & I (Rs.) o"kZ & 2 (Rs.)
Cash
6. What do you understand by cash management ? Explain 2,00,000 1,60,000
jksd M+
Boumol's model. [3+7=10]
Sundry debtors
3,20,000 4,00,000
jksdM+ izcU/k ls vki D;k le>rs gSa \ O;wey (Boumol) dk fofo/k nsu nkj
Tem porary
ekWMy Li"V dhft,A investm ents 2,00,000 3,20,000
7. Prepare a cash budget of XYZ Ltd. on the basis of vLFkkbZ fofu;ksx
Stock
following information for the three months commencing 18,40,000 21,60,000
Lda/k
from June 2018. [10]
Prepaid expenses
28,000 12,000
fuEufyf[kr lwpukvksa ds vk/kkj ij twu 2018 ls izkjEHk gksus iwo ZnÙk O;;
Total Current Assets
okys rhu ekg dk jksdM+&ctV rS;kj dhft, % 2588,000 30,52,000
dqy pkyw lEifÙk
(a) Costs and prices remain unchanged and the firm Total Assets
56,00,000 64,00,000
maintains and opening balance of Rs. 10,40,000. dqy lEifÙk
Current liability
ykxrsa vkSj ewY; vifjofrZr jgsxa h ,oa QeZ #- 10,40,000 6,40,000 8,00,000
pkyw nkf;Ro
dk izkjfEHkd 'ks"k vuqjf{kr djsxhA Loans
16,00,000 16,00,000
_.k
(b) Cash sales are 25% of total sales and balance
Capital
75% are credit sales. 60% of credit sales are 20,00,000 20,00,000
iw¡t h
collected in the month following the sales, Retained earnings
4,68,000 8,12,000
balance 30% and 10% in the two following month izfr/kkfjr vk;
thereafter.
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 Statement of profit for the current year : (a) Sales for the year 2018 amounted to Rs.
10,50,000, In arriving at the Net Profit, items
pkyw o"kZ ds fy, ykHk fooj.k %
deducted from the sales included among others:

o"kZ 2018 ds fy, foØ; #- 10,50,000 gSA 'kq) ykHk

Rs. ¼#-½
Sales
fudkyus gsrq foØ; ls ?kVk;s x, nwljs fooj.k %
40,00,000
foØ;
Cost of Goods sold
Less : Cost of goods Rs. 8,25,000
sold 28,00,000 csps x, eky dh ykxr
?kVk;k % fcØh eky dh ykxr Depreciation on Plant
Rs. 25,000
Less : Interest la;a= ij gzkl
1,60,000
?kVk;k % C;kt Wages and Salaries
Net Profit Rs. 1,00,000
10,40,000 etnwjh o osru
'kq) ykHk Profit on sale of plant
Less : Taxes @ 50% Rs. 5000
5,20,000 la;a= dh fcØh ij ykHk
?kVk;k dj @ 50%
Profit after taxes
5,20,000 The machinery was sold for Rs. 15,000 and had
dj ds ckn ykHk
Profit distributed a cost of Rs. 30,000 (accumulated depreciation
2,20,000
ykHk forfjr of Rs. 20,000)

e'khu dks #- 15,000 esa cspk x;k rFkk ftldh ykxr

Calculate : #- 30,000 gS ¼dqy gzkl #- 20,000½
x.kuk dhft, % (b) The company declared and paid dividends of Rs
(i) Current Ratio 30,000.

pkyw vuqikr dEiuh }kjk ?kksf"kr rFkk pqdk;k x;k ykHkka'k #- 30,000
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 (ii) Acid test Ratio
Accrued Expences
9,000 18,000
vnÙk O;; rjy vuqikr
Provision for tax
5,000 5,400 (iii) Debt equity Ratio
dj ds fy, izko/kku
Total _.k&lerk vuqikr
dqy 4,00,000 4,61,500

(iv) Interest Coverage Ratio

Assests 2017 2018
lEifÙk (Rs.) (Rs.) C;kt O;kfIr vuqikr
Goodwill
15,000 10,000 (v) Gross profit Ratio
[;kfr
Plant dqy@ldy ykHk vuqikr
1,50,000 2,40,000
la; a=
Land and Building (vi) Net profit Ratio
20,000 40,000
Hkwfe o Hkou 'kq) ykHk vuqikr
Debtors
75,000 80,000
nsu nkj (vii) Return on capital employed
Stock
1,08,000 60,000 yxkbZ xbZ iw¡th ij izR;k;
Ldan
Bank (viii) Return on equity
29,000 28,000
cSad
Prepaid Insurance lerk ij izR;k;
3,000 3,500
iwo ZnÙk chek (ix) Debtors turnover Ratio
Total
4,00,000 4,61,500
dqy nsunkj vkorZ vuqikr
Additional Information : (x) Stock turnover Ratio

vfrfjDr lwpuk,¡ % Lda/k vkorZ vuqikr

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 UNIT-II @ bdkbZ&II Determine (EOQ), total number of orders
in a year and the time gap between two
4. (a) What is ABC analysis ? Explain with the help of
orders.
suitable example. [3]
ferO;;h vkns'k ek=k (EOQ)] izfr o"kZ dqy
,-ch-lh- fo'ys"k.k D;k gS \ mfpr mnkgj.k dh
vkns'kksa dh la[;k rFkk nks vkns'kksa dk e/;karj
lgk;rk ls Li"V dhft,A
fu/kkZfjr dhft,A
(b) The finance department of a corporation provides
5. The following are the Balance Sheets of ABC Ltd. for the
the following information : [7]
year 2017 and 2018. Prepare Fund-flow statement for
,d dkiksZjs'ku dk foÙk foHkkx fuEu lwpuk,¡ iznku the year 2018 : [10]
djrk gS %
,-ch-lh- fy- dk o"kZ 2017 rFkk 2018 dk vkfFkZd fpV~Bk
(i) The carrying costs per unit of inventory fuEukafdr gSA o"kZ 2018 gsrq dks"k&izokg fooj.k rS;kj dhft, %
are Rs. 10.
Liabilities 2017 2018
nkf;Ro (Rs.) (Rs.)
Lda/k dh izfr bdkbZ ogu ykxr #- 10
Share Capital
1,00,000 2,00,000
(ii) The fixed cost per order are Rs. 20 va'k iwt¡ h
General Reserve
63,250 68,250
izfr vkns'k LFkk;h ykxr #- 20 lkekU; lap ;
Depreciation fund
50,000 55,000
(iii) The number of units required is 30,000 gzkl dks"k
per year. Debentures
50,000 -
_.ki=
izfr o"kZ vko';d bdkbZ 30,000 S. Creditors
1,22,750 1,14,850
fo- ysu nkj

3624/1000 ( 8 ) 3624/1000 ( 9 ) [P.T.O.]

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