IGNOU BFO 12 SOLVED ASSIGNMENT

Included:

BFO 012 (January 2025 - July 2025) - ENGLISH

BFO-012: BASIC ACCOUNTS AND FINANCE (TUTOR MARKED ASSIGNMENTS)

Course Code: BFO-012

Programme: BAFSM

Total Marks: 100

Assignment Code: BFO-012/TMA/2025

Note:

This TMA consists of ten questions, out of which you have to attempt any five. The questions carries 20 marks each and should be answered in about 600 words each. Send your TMA to the coordinator of your Study Center.

Section A:

1. From the following Trial Balance of Gupta & Sons, prepare Trading and Profit and Loss Account for the year ended December 31, 2018 and a Balance Sheet as on that date.

Trial Balance

Name of the Account	Debit Balances	Credit Balances
	Rs.	Rs.
Capital		5,00,000
Sales		10,00,000
Sales Returns	25,000
Purchases	5,00,000
Purchases Returns		15,000
Inventory as on 1.1.18	60,000
Land & Buildings	4,00,000
Plant & Machinery	3,00,000
Furniture	1,00,000
Wages	50,000	7,000
Carriage Inwards	10,000
Provision for Bad Debts
Carriage Outwards	5,000
Cartage	5,000
Salaries	40,000
Loan		2,60,000
Debtors	1,50,000
Creditors		70,000
Rent		8,000
Bills Receivable	40,000
Acceptances		10,000
General Expenses	20,000
Rent & Rates	10,000
Investments	50,000
Cash in hand	50,000
Bank Overdraft		10,000
Discount	4,500
Bad Debts	5,000
Interest on Investments		5,000
Interest on Bank Overdraft	500
Goodwil	60,000
Total	18,85,000	18,85,000

Additional Information

1) The value of inventory on December 31, 2018 was Rs. 1,00,000.

2) Depreciation is to be provided on: Land & Building @ 5% p.a. Furniture @ 10% p.a. Plant & Machinery Rs. 50,000.

3) Provision for Bad Debts is to be maintained @ 5% on debtors.

4) Wages are outstanding to the extent of Rs. 4,000 and Salaries to the extent of Rs. 3,000.

5) Rent and Rates are prepaid to the extent of 1/4th of the amount paid.

6) Interest on Investment outstanding is Rs. 1,000.

7) Rent to the extent of Rs. 2,000 has been received in advance.

2. Write short notes on the following (Any four):

a. Principal of double entry

b. Cost of capital

c. Operating leverage

d. Budgetary control

e. Margin of safety

Section B:

3. What is capital structure? What are the major factors determining the capital structure of a company?

4. What is budgeting? What are the essentials of establishment of sound system of Budgeting?

5. Define a computerised accounting system. Briefly explain its advantages and disadvantages.

Section C: 

6. What are the qualitative characteristics of accounting information? Briefly explain.

7. Briefly explain the accounting concepts which guide the accountant at the recording stage.

8. Differentiate between

a. Fixed Instalment Method and Diminishing Balance Method

b. Fixed Assets and Semi-Fixed Assets

9. What is ratio analysis? What are its different uses?

10. Discuss the challenges faced by the financial manager in India.

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