Assignment No. 2 Advanced Accounting (MC-525) Roll No. Name: Class: M Com II Dear Students, here is your Assignment 2. Submit within due date and time. Write in your own words. Explain the concept with help of proper examples. Copy/paste from Books, Internet Resources, Journals and Material provided by Course Instructor will lead zero marks. Late submission will lead to zero marking. If students are unable to attempt in MS Word, they can submit handwritten with proper lining and formats within time. Q 1: Explain following: (Draw three column table, explain each item heading wise. Also discuss Cash Inflow and Cash Outflow of each activity) Investing Activities Financing Activities Operating Activates Q2: Differentiate between Absorption and Amalgamation? Q 3: From the following profit and loss and balance sheet information, prepare a cash flow statement as required by FRS 1 using the indirect method. P&L A/c for the Year Ending 31 December 2019 Sales $10,000 Cost of Goods Sold (6,000) 4,000 Expenses: Depreciation 600 Interest 150 Other Expenses 2,100 (2,850) Profit for the Year before Tax 1.150 Tax (200) Profit for the Year after Tax 950 Dividends (150) Retained Profit $800 Balance Sheet as on 31 December 2018 Fixed assets at cost $6,000 Less accumulated depreciation 3,000 2019 $6,000 2,400 3,000 3,600 Net book value Current Assets: Stock Debtors Cash 500 200 1,620 450 250 150 2,310 850 Less: Current Liabilities Creditors Taxation 300 150 312 200 (510) $4,800 (450) $4,000 Financed by: Ordinary Shares Revenue Reserves 2,000 2,800 $4,800 2,000 2,000 $4,000 Q 4: What are Purchase Considerations. Calculate value of Purchase Considerations under Net Worth Basis from the information given below: Goodwill = Rs. 11,000, Land & Building = Rs. 12.500, Plant = Rs. 12,000 Liabilities taken Over by New Company = Rs. 5,000 Tips: Draw pictures where applicable Do not copy/paste from internet sources Make proper headings Make sure spell check Explain the points in your own words