Aiou Solved Assignments code BA/B.com code 444 Autumn & Spring 2021 assignments 1 and 2 Course: Advanced Accounting (444) spring 2021. aiou past papers

## AIOU Solved Assignments 2 Code 444 Autumn & Spring 2021

Reconstruction Arrangements: Under some schemes an existing company winds up but registers itself into a new company after rearrangement and finan… .vial reorganisation as approved by its shareholders and creditors. The benefits of this type of scheme are: 1- Write off the accumulated loss in the profit and loss account as described previously. 2- Elimination of fictitious assets like goodwill and preliminary expenses, 3- Bringing down values of its assets to realistic levels and thus reducing depreciation expenses. 4- Subsequent readjustment of its assets. The entries to close the books of the winding up company will be the same as have already been described in example. Another example is given below regarding entries in the old company and newly formed company.

Q.3 (a)What do you know about accounting ratios? Explain. Describe any five accounting ratios and briefly narrate their significance. Ans: Accounting Ratios:. Any five 2ccountine ratios & narrate:

Ans: RATIO ANALYSIS Ratio analysis is an- important means of stating the relationship between two numbers. To be useful, a ratio must represent a meaningful relationship, but use of ratios cannot take the place of studying the under lying data. Ratios are guides or short cuts that are useful in evaluating the financial position and operations of a company and in comparing, them to previous year or to other companies. The primary purpose of ratios is to point out areas for further investigation and improvement. Ratio Technique: Ratio may be stated in several ways. For example, the ratio of net income of Rs. 100000/- to sales of Rs. 1 million may be stated as: a- Net income is 1/10 or 10% of sales.