1 a)BANK RECONCILIATION STATEMENT

Bank reconciliation statement is a statement which reconciles the bank balance as per cash book with the balance as per pass book by showing all causes of difference between two. There should be no difference between the balance shown by the pass-book and cash-book, if all the entries are recorded in both. However, on a particular date it is possible that balances on both the books do not tally, i.e. some entries may have been recorded in cash-book but not in pass-book and vise-versa.  

After finding the reasons for non-agreement of balances, efforts are made for their reconciliation. This reconciliation prepaired and presented in the form of a statement which is called Bank Reconciliation Statement.

USES OF BRS

1) The bank reconciliation statement brings in a comparison between cash book and bank statement, allowing for items in transit.  

2) Non agreement of two adjusted balances indicates an error which can be corrected by BRS.

3) Agreement of two adjusted balances provides completeness of cash-book.

4) When cash-book is updated and corrected, the organisation has an amended and correct figure of the bank balance which is to be shown in the trial balance and balance sheet..

5) The bank statement is an independent accounting record therefore it will assist in determining fraud by providing means of varifing the cash book.

6) A trial balance difference may have indicated an error somewhere in accounting system, the same amount showing up, as a bank reconciliation difference indicates that any search for an error can be restricted to the bank accounting system.

INTANGIBLE ASSET

Intangible asset is that which is not having physical existence or it is an asset that is not physical in nature. Goodwill,brand recognition and intellectual property such as patents ,trademark and copyrights are all intangiable asset.An intangible asset can be classified as either definite or indefinite .A company,s brand name is considered as an indefinite intangiable asset because it stays with the company for as long as it continues the operation.

Definite intangible aset include a legal agreement ,with no plans of extending the agreement. The agreement thus has a limited life and is classified as a definite intangible asset.

The classification of tangible and intangible assets are as follows:

tangible asset	intangible asset
plant and machinary	intellectual property
property	patent,copy right,trademark,industrial design ,trade secret.
equipment	intellectual capital
	human capital organisational capital relational capital

2 

1. Proportionality: The basic assumption underlying the linear programming is that any change in the constraint inequalities will have the proportional change in the objective function. This means, if product contributes Rs 20 towards the profit, then the total contribution would be equal to 20x1, where x1 is the number of units of the product.

   For example, if there are 5 units of the product, then the contribution would be Rs 100 and in the case of 10 units, it would be Rs 200. Thus, if the output (sales) is doubled, the profit would also be doubled.

2. Additivity: The assumption of additivity asserts that the total profit of the objective function is determined by the sum of profit contributed by each product separately. Similarly, the total amount of resources used is determined by the sum of resources used by each product separately. This implies, there is no interaction between the decision variablesi.e., the level of activity X₁ should not affect the costs or benefits associated with the level of activity X₂.

1. Continuity: Another assumption of linear programming is that the decision variables are continuous. This means a combination of outputs can be used with the fractional values along with the integer values.

   For example, If 52/3 units of product A and 101/3 units of product B to be produced in a week. In this case, the fractional amount of production will be taken as a work-in-progress and the remaining production part is taken in the following week. Therefore, a production of 17 units of product A and 31 units of product B over a three-week period implies 52/3 units of product A and 101/3 units of product B per week.

1. Certainty: Another underlying assumption of linear programming is a certainty, i.e. the parameters of objective function coefficients and the coefficients of constraint inequalities is known with certainty. Such as profit per unit of product, availability of material and labor per unit, requirement of material and labor per unit are known and is given in the linear programming problem.

1. Finite Choices: This assumption implies that the decision maker has certain choices, and the decision variables assume non-negative values. The non-negative assumption is true in the sense, the output in the production problem can not be negative. Thus, this assumption is considered feasible.
2. Divisibility -- the values of decision variables can be fractions. Sometimes these values only make sense if they are integers; then we need an extension of linear programming called integer programming.
3. Certainty -- the model assumes that the responses to the values of the variables are exactly equal to the responses represented by the coefficients.
4. Data -- formulating a linear program to solve a problem assumes that data are available to specify the problem

 3 

Return on Equity = Net Income / Share Holders Fund = 5100/ (12000 + 4000 + 13200) = 0.17

Return on assets = Net Income / Total Asset = 5100 / 208200 = 0.02

Interest Expense Ratio= Interest Expense / (Interest Income + Interest on debentures) = 12200 /(22400+2600) =48.8%

Profit Margin = Net Income / (Interest Income + Interest on Debentires) = 5100 / (22400 + 2600) = 20.4%

Equity Multiplier = Total Asset / Share Holder fund = 208200 / (12000 + 4000 + 13200 ) = 7.13

Asset Utilization = (Interest Income + Interest on debentures) / Total assets = (22400 + 2600) / 208200 = 0.12

Return on equity measuring profitability to equity of the business. Retun\rn on asset indicate profitability measuring with Assets. Interset expense ratio indicate paymnet of interest expense on remaining debt.