Essay Principles of Capital Budgeting – Partners Sharing Profits – Economics Assignment Help

Assignment Task :

Question No: 1
Answer All Questions  
Study the case given below and answer the questions given at the end. A country’s current account balance is equal to its private savings surplus minus its government budget deficit. Assume that a country has a current account surplus of $10000, a government budget deficit of $1500, and private savings of %12000.

Questions:
A. What is the country’s private investment? Is the country saving more or less than is needed to finance its private investment and budget deficit?
B. Most developing countries have incurred huge balance of payments deficits for mahy years. what alternatives are available to these countries for dealing with their balance of payments problems?

SECTION B: Short Essay
Answer Four (4) Questions 
2. Why capital budgeting decisions are more important? Discuss principles of Capital budgeting.
3. Explain the need for the advantages of centralized cash management for a company which is involved in international business.
4. Mr. Kulkarni purchases a motor car on hire purchase system. Total price of the car payable is 40,000 as down payment and thereafter the installment of Rs. 26,000, Rs. 24,000 and Rs. 22,000 payable at the end of first, second and third year respectively.
Interest is charged 10% p.a. Calculate the cash price.

5. A company purchased a plant for Rs. 50,000. The useful life of the plant is 10 years and residual price is Rs. 10,000. Find out the rate of depreciation under straight line method.

SECTION C: Long Essay
Answer Two (2) Questions  
6. A & B are partners sharing profits in 3:2 Ratio.
C is admitted for 1/5 share which he acquires equally from both A & B. Find out the new Ratio of partners.
7. A machine purchased on 1st July 1983 at a cost of Rs. 14,000 and Rs.1000 was spent on its installation. The depreciation is written off at 10 % on the original cost
every year. The books are closed on 31st December each year. The machine was sold for Rs. 9,500 on 31st March 1986. Show the machinery account for all the year.
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