MBATIO2 Roll No. LTTTT TI TTT) MBA ODD SEMESTER EXAMINATION, 2019-20 MBA (SEMESTER 1) FINANCIAL ACCOUNTING 3:00 Hours ef _Max Marks: 70 ‘Total no, of printed pages: 3 Note: All questions are compulsory. QL Qn. Q3. Attempt any four question 493.5= 14 a) What is the difference between single entry and double entry system? b) Explain capital expenditure and revenue expenditure ©) How is Tally usefial in accounting? 4) Calculate Liquid Ratio from the given details. Current liabilities 65,000 ts 85,000 20,000 Advance tax 5,000 Prepaid Expenses 10,000 e) Write a short note on IFRS. Attempt any four: 43.5= 14 a) Describe any po convention of accounting, b) Explain the classification of accounts? c) What is the use of preparing balance sheet? d) Write a note about AS-3. c) What is the diffrence between depreciation and amortization? Attempt any two: 28T= 14 a) What do you understand by accounting? Describe the role of accounting in the economic development. b) What is fund flow statement? What are the uses and limitations of fund flow statement? ©). The following figures relate to the trading activities of'a company for the year ended 31.12.2018. Particulars RE. Particulars RS Sales 100,000, Salary of salesman 1,800 Purchases 70,000 Advertising 700 Closing stock 14,000 Travelling expenses 500, Sales returns 4,000 Salaries (offices) 3,000 Dividend received 1,200 Rent 6,000 Profit on sale of fixed Stationery 200 assets: 600 Depreciation 1,000. Loss on sale of shares | 300 Other expenses 2,000 Opening stock 11,000 Provision for tax 7,000 P.T.O 1 0117Qs. 5. You are reqaired 10 caicniate 1) Gross profit ratio 2) Operating profit ratio 3) Operating ratio 4) Net profitratio Attempt any vo: a) ___ From the following balance sheet 13 °3,00,000 [4.00.00 | Goodwill 90,000 | capital a asaee BEE eee 8% 130,000 | 7,00,000 | Land & 200,000 770,000 redeemable building preference share capital | oe General [40,000 [70,000] Plant 80,000 |2,00,000 re Profit & [30,000 48,000) Debiors 1,60,000 [3,00,000 Loss Proposed | 42,000 | 30,000] Stock 7,000 | 1,09,000 Dividend _| it Creditors [55,000 [83,000 | Bills 20,000 [30.000 Receivable Bills 20,000] 16,000 | Cash in hand | 15,000 | 10,000 payable iitnes Provision [40,000 [50,000 | Cashin 10,000 | 8,00 for taxation Bank 6.77,000 [817,000 6,7,000 | 8.17,000 Additional information: 1) Depreciation of Rs 10,000 and Rs 20,000 have been charged on plant and Land & Building in 2018. 2) An interim dividend of Rs 20,000 has been paid in 2018. 3) Rs 35,000 income tax was paid during 2018. b) What is the meaning of computerised accounting? What are the features of computerized accounting? —f ©) What is meant by “generally accepted accounting principles"? Explain the difference between GAAP and IFRS. Attempt any two: 27214 2) What is Trial Balance? What are the objectives and limitations of Trial Balance? b) What is an Accounting Error? Explain the different types of accounting errors and procedure for reetifying those errors. PTO 2 so117©) The following ‘Trial Balance have been taken out from the books of ABC as on 31" Dee 2018: 170,00 100,000 Carriage inward 3.400 Discount on | 2,000 et purchases Carriage outward 5,000 “apital 32,000 Bee 1.00,000 aries ___| 24,000 = Furniture 36,000 [Trade expenses 13,000 _| Discount on sales | 1,900 eee | Advertisement 5,000 Bad debts 1,800 el eee Drawings 10,000 Bills Receivables | 50,000 Insurance =| 4,400 : =e Bank balances 20.000, 7,95,500 7,95,500 You are required to prepare the trading and profit & loss account for the year ended 31.12.2018 and a balance sheet as at that date, 3 0117MBAT-102 1058 Odd Semester Examination 2018-19 MBA (SEMESTER-I) (New Syllabus) FINANCIAL ACCOUNTING Time: 03:00 Hours Max Marks : 70 Note: Attempt ALL sections SECTION-A Q4: Attempt any four from following [7X2=14] ‘A. From the following, prepare a cash flow statement Opening Cash balance - 15,000 Closing Cash balance - 30,000 Decrease in stock 8,000 Decrease in debtors : 13,000 increase in bill payable . 12,000 Sale of fixed assets : 30,000 Repayment of long term loan - 50,000 Operating profit before working capital changes. - 2,000 8. What do you mean by accounting? Explain the objectives and limitations of accounting. MBAT-102/1980 (1) [PTO]A Q.3: Attempt any five from following A B. : o. Attempt any five from following 15X5=25] Vwhat is fund flow statement? Mention the significance and fimitations of fund flow statement Explain and illustrate solvency ratios. What are the problems associated with corporate financial reporting? Prepare a trading, profit and loss account taking imaginary figures. ‘Is trial balance a conclusive proof of arithmetical accuracy of the books of accounts? Comment 000 and establishment. The estimated life of the machine is five Sharma traders brought machinery on 15" January 2017 of Rs 1, 1 spent Rs 15000 on its years. After which its residual value is estimated Rs 14000 Calculate annual deprecation according to fixed instalment method and prepare machinery account for five years. SECTION-C Explain the advantages of computer system over manual system, What is separate legal entity concept? Difference between cash discount and trade discount Explain Tools and techniques of financial statement analysis. Give classification of accounts? State uses of accounting information. MBAT-102/1980 (2)4: Attempt any four from following A, Define ledger. Explain five exa SECTION-D es of personal account Mention four items of current liabilities. Explain need of depreciation Money Measurement Concept Q.5: Attempt any three from following Write short notes on Reotification of errors Principle of consistency. Double entry system Provision for doubtful debts. MBAT-102/1980 SECTION-E (3) [4X2.5=10} [3X2=6)MB-102 1101 Odd Semester Examination, 2017-18 MBA (SEMESTER-I) FINANCIAL ACCOUNTING Time: 03:00 Hours Max Marks : 70 Q.4. Answer any four (4°3.5=14) 1, What are the objectives/advantages of accounting? 2. Why depreciation is to be provided while finalizing the accounts? 3, Calculate current ratio from the following data: Bank OD: 20,000; Cash: 15,000; Outstanding expenses: 10,000 Accrued income: 5,000; Stock: 5,000; Prepaid expenses: 5,000 4. Difference between Cash Flow and Fund Flow? 5. Each transaction has a double aspect." Explain this statement giving suitable examples. Q2. Answer any four (4°3.5=14) 1. What are the different types of errors that are usually committed in recording business transaction? 2. Distinguish between capital and revenue expenditure 3. Write a brief note on comparative statement? 4, Calculate Quick Ratio from the following, Debentures : 10,000 Long-term loan : 20,000 Cash : 15,000 Raw materials : 6,000 Debtors : 5,000 Creditors : 5,000 Prepaid expenses : 5,000 5. Which assets, fixed assets or current assets, are important to a firm? MB-102/2200 a) [P.T.0]Q.3. Answer any two (2*7=14) 1 Accounting is Language of Business explain how and explain importance of Generally Accepted Accounting Principles (GAAP) with suitable examples. 2. Accounting convention and concepts are foundation of accounting principles. Explain the need of ‘Accounting Principles’. Discuss briefly the Accounting Concepts and Conventions. Name any three each in both the categories and detail 3. Stores Ledger Account of Kanthi & Co. shows the following particulars: 2008 Jan, 1 Opening Balance: 500 units @ Rs. 4 Jan, 5 Received from vendor: 200 units @ Rs. 4.25 Jan, 12 Received from vendor: 150 units @ Rs. 4.10 Jan. 20 Received from vendor: 300 units @ Rs. 4.50 Jan, 25 Received from vendor: 400 units @ Rs. 4 Materials were issued as follows: 2008 Jan. 4 — 200 units Jan. 10 ~ 400 units Jan. 15 ~ 100 units Jan. 19 - 100 units Jan. 26 ~ 200 units Jan. 30 ~ 250 units Issue is to be priced on the principle of ‘First in First out’. Write out the Stores Ledger Account in respect of the materials for the month of January, 2008. Q4. Answer any two : (2°7=14) 1. Complete the following Balance Sheet, assuming that only the Equity Share Capital and Retained Earning figures are given Liabilities Rs. ‘Assots Re. Equity Sharo Capital 1,20,000, Fixed Assots ? Retained Earnings 4,20,000 Sick 2 Croditors: 2 Debtors - Cash 2 Total (Rs) 2 Total (As. 2 MB-102/2200 (2)2.5. Answer any two: 1 1B-102/2200 Total debt is Two-Third of Net Worth. Turnover of Total Assets is 1.8; 30 da ys sales are in the form of Debtors; Turnover of inventory is 5; cost of goods sold in the year is Rs.3,60,000; and the acid test is 1:1 The current ratio of Kishore & Co is 2:1. Which of the following decisions would improve the ratio, which would reduce it and which one would not change it? 1 To pay substantial amount of creditors from the available cash balance? 2, To sell a vehicle, used for carrying staff from their residences to office, for cash at a slight loss 3. To borrow money for a short period, with a nominal Interest rate, executing a promissory note. To purchase marketable investments for cash. 5. To give an interest bearing promissory note to a creditor to whom mor ‘owed on current account. Purchase of a fixed asset, Bills receivable dishonored. Issue of Preference shares. ney was What is meant by “Generally Accepted Accounting Principles"? Describe the characteristics the Accounting Principles should have for uniform acceptance. Following information is available from the books of Suresh Ltd. for the year-end 31- 12-2005 and 31-12-2006. Calculate cash flow from operations for the year ending 31-12-2006. Explain the errors disclosed by trial balance. From the following balances of Shyam & Co., prepare trading and Profit Account for the year ended 31st Dec., 2008 and balance sheet on that date: (3) ‘31-12-2005, 31-12-2006, Profit mado during tho yoar 250,000, Income received in advance 500 400 Prepaid expensos 1.600 2,000 Dobtors 80,000 20,000 Bills rceivablo 25,000 40,000 Creditors 45,000 65,000 Bis payablo 13,000 5,000 Outstanding expenses 2,800 3,000 Accrued income 1,800 1,800 & Loss [P.T.0]MB-102/2200 Debit Balances: Rs, Rs, Drawings 1.700 | Rent 450 Plant & Machinery 12,000 | Wise. Expenses 150 Horses & carts 2,600 | Bad Debio 500 Debtors 3,600 | Carriage inwards 160 Purchases 2,000 | Credit Balances ‘Wages 600 | Creditors im __ 2,000 Cash at Bank 2,600 | Sales 4,200 Solarios 800 | interest 1.350 Repairs 180 | Commission 1.600 ‘Opening stock 1,600 | Capital 720,000 Adjustments: (1) Closing stock Rs. 1,600 (2) Depreciate piant & machinery 10%, horses & carts 15%. (3) Allowed interest on capital at 5%p.a. (4) Rs. 150 is due for wages. (5) Paid rent Rs. 150 in advance (6) Accrued interest Rs. 150. (7) Commission received in advance Rs. 200 (8) __ Interest on drawings Rs. 100 (4)MB-102 B Printed Pages : 6 Paper Code & Roll No. to be filled in your Answer Book Roll No. Odd Semester Examination-2016 MBA (Semester-I) FINANCIAL ACCOUNTING {Time:3 Hours} [Maximum Marks :70] Note : Attempt All questions. 1. Answerany four: [3.5*4=14] (a) Describe any two concept of accounting. (b) Write a brief note on comparative statement. (c) Shine Limited has a current ratio 4.5:1 and quick ratio 3:1; if the stock is 36,000, calculate current liabilities and current assets. (@ Whatis the primary reason for the business students and others to familiarise themselves with the accounting discipline? MB-102/80 Q [PTO](@) 2. Answerany four: (a) ©) (c) @ © MB-102/80 Define : () Ledger (i) Trial Balance (3.5*4=14] What are the different. types of errors that are usually committed in recording business transaction? Distinguish between capital and revenue expenditure. How does fund flow statement differ from balance sheet? What do you mean by Ratio Analysis? Explain the rules of debit and credit in case of the following : i Revenue (ii) Expense (iii) Real Account @ @ (b) (©) MB-102/80 Answer any two: (iv) Capital () Nominal Account [7*2=14] ‘Accounting convention and concepts are foundation of accounting principles. Describe the various conventions and concept while explaining this statement. Describe the role of accounting in the economic development? What will be the effect of the following on the accounting equation? (Vineet started business with cash Rs.18,000 (ii) Purchase goods for cash Rs. 5,000 and on credit Rs, 2,000 (iii) Sold goods for cash Rs. 4,000 (costing Rs.2,400) (iv) Rent paid Rs. 1,000; and rent outstanding Rs, 200 Q) [PTO]4. Answerany two: [7*2=14] Adjustment: (@) _ Fromthe following balances of M/s Bajaj Bros. You @ Provision for bad debts @ 5% and further bad debts are required to prepare trading and profit and loss Rs. 2,000. and a bal 31,2016: account and a balance sheet of March 31, (ii) Rentreceived inadvance Rs, 6,000. (iii) Prepaid insurance Rs. 200. [Debit Balance | Amouni[CreditBalance | Amount Plant end 130,000] Sales 3,00,000] (iv) Depreciation on furniture @ 5%, plant and [Machinery Oy, bmilds 9 Debtors, 30,000|Retum outwards 2.500] machinery @ 6%, building @ 7%. Interest 2,000] Creditors 2.50.000) Wages 1,200[Bills pavable 70,000] (>) What are the different types of account? Explain Salary 2,500 Provision oe 1,550 with example their rules of debit and credit. (Camiage inwards 500 Capital 20,000] (Carriage outwards 700|Rent received 10,380] (c) Define a computerised accounting systein. Return inwards 2,000|Commission 16,000 Distinguish between a manual and computerised received faa ec accounting system. Office rent 2.300) ITngurance 730] 5. Answerany two: [7x2=14] Furniture 22.500 i Building 2.80.000) : lysis a Building —— oe @ What do you understand by analysis and [Cash in hand 22.500} . interpretation of financial statements? Discuss {Cash at bank 35,000] oct 7 their importance, |Ovening stock 60,000) . . jPruchass. 2.50000 (b) Accounting equation remains intact under all Bad debts Pan | 000°00'¢| ‘SIRS, 9107 S0'TE| Sto7 eo Te| aenonea| quomiayeys auoou aanereduros # ozedaud snojoq woAyS voReUUOsET BusoTIOs ay Wor — (0)Gross Profit Ratio is 25%. Calculate Inventory Turnover. 43° Whatisa Cash Flow Statement? How does Cash Flow Statement differ from Funds Flow Statement? Answer Any Four (4x5=20) 5.1 "Recent developments in corporate financial reporting indicate a greater emphasis on better voluntary disclosures by the companies regarding their performance and state of affairs." In view of this statement explain the recent changes in Corporate Reporting by the companies inIndia. 52 Why International Financial Reporting Standards (IFRS) isimportant for companies that have dealings in several countries, Also give an overview of Intemational Financial Reporting Standards (IFRS). 5.3. Whatare the main advantages of using FIFO and LIFO? x @ MBA-102/2860 MBA-102 57 Printed Pages: 4 Paper Code & Roll No, to be filled in your Answer Book Roll No. MBAI Year (I Sem.) Odd Semester Examination-2015 FINANCIAL ACCOUNTING Time : 3 Hours] (Maximum Marks :100 Answer Any Four (4x5=20) 1.1’ Whatare the objectives of financial accounting? 12 Explain thenature of the accounting function. 1.3 Writeanote on Role of Accountants in the Society.’ 1.4 Whatis accounting information system? What are the qualitative characteristics of accounting information? 15 Why itis important to adopt a consistent basis for the preparation of financial statements? Answer Any. Four (4x5=20) 21 Discuss the advantages and importance of Double Entry System. a) MBA-102/286022 23 24 Describe the fundamental accounting equation. How are the revenue and expenses account related to it. Give five transactions that will lead to Increase in an asset and increase in a liability. X did the following transactions. Use accounting equation to show effect of transactions on his assets, liabilities and capital. a) Started business withcash Rs. 5,000 b) Purchased goodson credit Rs. 400 ¢) Purchased goods for cash Rs. 100 d) Purchase Furniture Rs. 50 ©) Withdrewforpersonaluse Rs. 70 f) Paid Rent Rs. 20 g) Received Interest Rs. 10 hh). Sold goods costing Rs. 50 * oncreditfor Rs 70 i) Paid to creditors Rs. 40 j) Paid for Salaries Rs 20 k) Further capital invested Rs. 1,000 }) Borrowed fromP Rs 1,000 (2) MBA-102/2860 25 Explain the rules of Debit and Credit for different accounts. Answer Any Four (4%5=20) 3.1 3.2 33 Prepare a balance sheet for a hypothetical company showing all the major heads as per the statutory order. ‘Accounting software is an integral part of the computerized accounting system.' In view of this statement explain the generic considerations before sourcing accounting software. Explain the options available in Account Books Menu in Tally. Answer Any Four (4x5=20) 41 42 Describe the financial information provided by income ‘statement, balance sheet and statement of cash flows. Innovative company supplied you the following information regarding the year ended 31st December, 2015: Cash Sales-Rs. 85,000 Credit Sales-Rs. 2,00,000 Return Inward=Rs. 10,000 Opening Stock~ Rs. 25,000 Closing Stock-Rs. 30,000 @ PLO.MB- 102 37 Printed Pages : 8 Roll No. to be filled in your Answer Book Roll No. Time : Three Hours] Note : Attempt all questions. MBA First Semester Examination 2014 Financial Accounting Paper |D:-410021 [Max. Marks : 70 Section A (Marks 16) at Rajeev Sharma is the new Accounts Officer with Shyam Lal and Sons You have also joined the company an account assistant ,On joining Mr Sharma was handed over the ledgers by the outgoing Account Officer Mr. Bhatia along with the trial balance for the financial year 20X1-X2 Particulars Del Rs Credit Rs Sundry debtors Sundry Creditors itstanding Liability for Expenses ‘Wages Carriage Outwards Carriage inwards General Expenses a) 5,00,000 2,00,000 55,000 1,00,000 4,10,000 50,000 70,000 MB-102/2150/8 *Cash Discount Bad Debts Motor Car Printing and Stationery Furniture and Fittings Advertisements Insurance Salesmen's Commission Postage and Telephone Salaries Rates and Takes Drawings Capital Purchases: Sales Stock on ‘st April 20X1 Cash in bank Cash in hand 20,000 10,000 2,40,000 15,000 1,10,000 85,000 45,000 87,500 87,500 460,000 25,000 20,000 15,50,000 2,50,000 60,000 10,500 36,30,500 14,43,000 19,87,500 36,30,500 Mr Rajeev Sharma collected the following information for. adjustment 1) Stock on 31st March, 20X2 was valued at Rs 725,000 @ MB-102 / 2150/8March 3 March 10 March 17 March 26 March 31 What role ratio analysis plays in Financial Statement analysis? What are the various ratios used? Elaborate 300 units 500 units 400 units 500 units 200 units Or the ones used by creditors and investors? x © MB-102 / 2150/8 2) 3) 4) 5) Provision for Bad Debtis to be created to the extent of 5% on Sundry Debtors Depreciate Furniture and Fittings at 10% and Motor Car at 20% Goods worth Rs 25,000 were withdrawn for personal use Purchases included purchase of Furniture worth Rs 50,000, Mr. Rajeev Sharma asked you to prepare Trading Profit and loss account and balance sheet for the year ending 1st April20X2. Section B (Marks 3X4) Q2 Write short notes on any three a) b) °) 4) e) FY Computerised Accounting Trend. analysis Objectives of Accounting Subsidiary books Difference between ledger and Journal Advantages and disadvantages of Double-Entry book-keeping 8) PTOSection C (Marks 14x3) Q.3 Is the Agreement of Trial balance a conclusive proof of the accuracy of the book-keeper? If not, what are the varicus errors that remain undetected by the Trial Balance along with examples? Also discuss errors disclosed by a Trial balance? : Or Prepare a Fund-flow statement forABC Ltd Balance sheet Liabilities Assets 2ox1 | 2002 20x1 | 20x2 Cepital 400000 | 500000 | tand 800000 | 600000 Retained Earnings | 342000 | 600000 | Buildings | 400000 | 400000 Generalreserves _|318000 | 420000 | fumiture | s00a00 | 300000 loan 640000 | 400000 | Stocks 200000 | 400000 Accumulated 90000 | 120000 | cash 62000 | 600000 depreciation Current liabilities | 672000 | 700000 | Debtors | 500000 | 440000 /246200(| 2740000) 2462000) 2740000 Adjustments Land was purchased costing Rs 250000 Furniture costing Rs 200000 with accumulated depreciation Rs 70000 was sold for Rs 100000 Oy MB-102 / 2150/8 4) 5) Payment of Dividend Rs 50000 Payment of taxes Rs 35000 What are various Accounting concepts and conventions and Generally accepted accounting principles? Explain them? Or What are the factors which cause depreciation? How is depreciation different from depletion and amortization? Whatare the various methods for charging depreciation? Explain any three with examples? Calculate the value of closing inventory using UFO method on 31st March 20x1 using 1) Periodic inventory system 2) Perpetual inventory system ‘Stock on March 1, 20x1 (opening stock) 400 units @ Rs 750 each Purchases March 5 600 units @ Rs.800 each March 15 500 units @ Rs.900 each March 15 400 units @ Rs.850 each March 15 300 units @ Rs.950 each Issue 6) PTOA ditiona)information: 1,.Clésing Stocks Rs. 1500 artStanding rent and taxes Rs. 500 3+Charges depreciation on building @ 5 % and on machinery @10% _, _ Ae Srages prepaid Rs, 500 5. Further bad dedts to the extent of Rs. 200 . Create a provision for bad debts to the extent of 5% on debtors. OR ‘The comparative balance sheet of a company are given below:- [Amount |Amount . |Amount |Amount iculars parti Parteners F012, 2013) UT a013) 2013 [Share Capital_| 35000] 37000|Cash 4500| 3900 [Debenture 6000| —3000|Book-Debis | 7450] _ 8850 (creditors 5180| _5920|Stocks 24600| 21350] Provision for 3 [Land 10000} 15000] doubt Detes | 3°] 4° Profit and loss | _5020| _5280|Goodwatl | 5000] 2500] 51550] 51600 31550] 51600] Acditonal information: i 1+ Dividend paid amounted to Rs. 1750 2+ Land was purchased for Rs. 5000 & amount provided for the amortization of goodwill amounted to Rs. 2500 3- Debentures were are paid to the extend of Rs. 3000 You are required to prepare Cash flow statement, 5. Define invenitory and discuss the significance of inventory valuation. oR ‘What are the purpose of charging depreciation? Explain briefly the various methods of charging depreciation MBA-102 / 3260/4 MBA-102 Rall No. to be filled in your Answer Book Printed Pages : 4 Roll No. MBA I-SEMESTER, UTU EXAMINATION, 2013-14 Financial Accounting Time : Three Hours] [Max. Marks : 70 Section A (Marks 16) 1. You hiave been hired as an analyst for Mellon Bank and your ‘team is working on an independent assessment of Daffy Duck Food Ine. (DDF Inc.) DDF Inc. isa firm that specializes in the production of freshly imported farm products from France. Your assistanthas provided you withthe following data for Flipper Ine and theirindustry. is Ratio 2013 | 2012 | 2011 | Industry Average [Long-term debt 045 | 04 | 035-| 035 Inventory Tumover___ | 62.65 | 42.42 | 32.25 | 53.25 ‘Deprecition/Total 0.25 |o014| 0018} oois | assets [Days’ sales in 113. | 98 | 94. | 13025 lreceivables Debt to Equity 0.75. | 0.85 09 0.88 [Profit Margin 0.082 | 0.07 | 0.06 0.075 \Total Asset Turnover 0.54 | 0.65 0.7 04 |Quick Ratio 1.028 | 1.03 | 1.029 1,031 |Current Ratio 1.33, 121 LS 1.25 [Times interestEarned | 0.91 [4.375] 4.45 | 4.65 [Equity Multiplier 175 | 185 | 19 [1.88 (1) MBA-102 / 3260/4Inthe annual report to the shareholders, the CEO of Flipper Ine ‘wrote, “2011 was a good year for the firm with respect to our * ability to meet our short-terin obligations, Wehad higher liquidity largely due to an increase in highly liquid current assets (cash, account receivables and short-term marketable securities)” Is ‘the CEO correct? Explain and use only relevant information in your analysis, 2 What can You say about the firm's asset management? Be complete as possible given the above information, but do notuse any irrelevant information, eases Provide the shareholders with an assessment of the firm’s solvency and leverage, Beas completes possible given the above ‘information, but do not use ‘any irrelevant information, Section B (Marks 3*4) Write ashort note (any 3) 7 a) Trend Analysis +b) Computerised Accounting ¢) Intemational Financial Reporting Standard 4) Users of Accounting information ¢) Tumover Ratios Q) MBA-102 Section C (Marks 14*3) “Is Trial Balance merely proof of Arithmetic accuracy”? explain the errors which are not disclosed by a trial balance, oR “Cash flow statementis useful in long as well as shor term financial lysis of the enterprise.” In the light of this: ‘statement discuss the ‘Importance of cash flow statement to different stakeholders, From the following tial balance and additional infomation, you are required to prepared final accounts, Trial Balance (as on 31* December, 2013) Particulars [Amounts [Amounts (Dr) (Cr) [Capital 200000] Sundry Debiors ~ 125005] Drawings 10000) Machinery 50000 Wages 1000] [Purchases 20000} Opening Stock 1000) Sales 30000] BankBalance _— 1000} Carriage inwards 500 Salaries 2500 Rents &taxes 500] [Sundry Creditors 20000] Bad Debts 500| Buildings 30000 [Cash in Hand 8000 250000] 250000] (3) aMBA-102 (GEM |) (ODD SEM) (Reg. & Back) EXAMINATION, 2512-13 FINANCIAL ACCOUNTING ow =) = S = & =) = Fi € = 3 Hours] Trolal Mark: “The accounting equation is the basis for recording, 1 alltransaetion in financial in Gnanciel accounting’. Comment" ‘on which basic accounting concept is this equation based? Illustrate your answer with at least five typical business transactions and their effect on the accounting equation 70 6 Answer any three of the following: 4x3 What do you mean by Profit and Loss A/c? ‘What is the need for providing depreciation? Briefly discuss the scope of accounting standards What is Journal? Trademarks and copyright Capital and Revenue expenditure menoge a What is Trial balance? How it is useful for the Owner of a company? Explain its“format also b Explain the Matching of Indian Accounting Standards with International accounting Standards, OR 7610192) a What is Ledger? Explain its format, What ave main differences between Journal & Ledger? b Explain with examples. the following 7 Accounting concepts Realization concept - Materiality concept Prepare ledagr Postings for the following transactions. 14 And show their balances in Trial Balance Started business with ash Rs, 8, 00,090 afd furniture Rs 10,000, Purchased machine for Rs, 1. 00,000 by paying Rs. 60% in cash immediately. Deposited cash in to bank Rs. $0,000 Salary payable Rs, 60,000 However only 40% has been paid during the year. Sold goods costing Rs. 50.000 for Rs 80,000 OR ¥ On i January 2000 XYZ ltd, Purchased a machine’ 14 for F.s, 58,000 and speat Rs 2000 on its installation. On July 2000, an additional machinery costing Rs.2 000 was purchased. On 1°! July 2002 the macl iné purchased on 1*' January, 2000 was sold for S. 8,600 and on the same date a new machine was Purchased at a cost of at accost of Rs. 40,000 (Depreciation was provided annually on 31* December, at the rate of 10% Pa, otf W.D.V. method “In 2003 the company decided to change the method of depreciation trom W.D.V. to Straight line method @ 5% P.a.Prepare the machinery account for the first four calenar years [Cont 19 Capital employed Rs, 2,00.000, Working 8 Capital Rs. 40,000,Cost of goods sold Rs. 6.40,000, Gross profit Rs. 1,60,000. Calculate Fixed assets turnover ratio. What is Ratio Analysis? How it is useful for “6 the shareholders and creditors of a company? Explain. : OR “There are five basic elemenis of Accounting Explain each one in detail How is the ‘Balance sheet’ prepared? Give its 7 # basic format with some items of Assets and Liability atare. ECNES we Cheek Pooecr 510102] 3 1 4746]5 Define the relevance of Trial Balance and Profit and MBA-104 iS Prinied Pages : 4 Loss Account with suitable examples B29 [Peper 1D and Roll No, to be filled in your Answer Book i OR - Rott Nol 4[ [39 [ols | olo[o[s|+ From the figures given below, prepare a statement Q a Qu | showing sources and applications of funds during the oc ati Ow] year 2005. Pag | (SEM. |) (ODD SEM.) EXAMINATION, 2041712 Particulars 2004 2005 F@ |FINANCIAL & MANAGEMENT ACCOUNTING Rs. Rs. i Assets: Time : 3 Hours} {Total Marks : 70 Fixed Assets (net) 5,10,000 6,20,000 . Investments 30,000 80,000 SECTION - A (Case Study) Current Assets 2,40,000 3,75,000 1 As Finance Manager draw a flexible budget for 16 Discount on debentures 10,000 5,000 overhead expenses on the basis of the following data an . 7,90,000 | 10,890,000 and determine the ovehead rates at 70%, 80% and 90% Liabilities and capital : plant capacity Equity Capital 3,00,000 | 3,50,000 ; . 9% Preference Capital 2,00,000 1,00,000 Particulars At 80% capacity 8% Debentures 1,00,000 2,00,000 Variable overheads Rs, Reserves 1,10,000 | —2,70,000 Indirect labour 12,000 Provision for doubtful debts | 10,000, 15,000 Stores including spares 4,000 Current liabilities 70,000 | 1,45,000 Semi-variable overheads 7,90,000 | 10,80,000 Power (30% fixed, 70% variable) 20,000 ‘The provision for depreciation stood at Rs. 1,50,000 Repairs and maintenance 2,000 ‘on 31% December, 2004 and at Rs. 1,90,000 on 315* (60% fixed, 40% variable) December, 2005, During the year: (a) A machine . Fixed overheads costing Rs. 70,000 (book value Rs. 40,000) was ~ Depreciation 11,000 disposed off for Rs, 25,000. (b) On 1-1-2005 preference Tnsurance 3,000 shares were redeemed at a premium of 5%. (c) Salaries 10,000 Dividend at 15% was paid on equity shares for the year Total overheads 62,000 2004. Estimated direct labour hours 1,24,000 hrs Also give suggestions for Flexible Budget and Other Budgets which can be used for better decision-making 7027) 4 1.3360 } 7027) . 1 [Contd... o7027) 2 SECTION - B (Part I) Write short notes (any four) 3x4-12 (a) Scope of Accounting, 1) Fixed Budget and its relevance. (©) Assumptions of break-even analysis. (@ _Luaitations of Management accounting, (©) Subsidiary Books in Accounting () Responsibility Accounting (@) Marginal cost and its applications in business (b) Financial Reporting SECTION - B (Part 1) 14x3=42 Explain the various accounting concepts and coventions with applications in business, OR Prepare final accounts on the basis of following trial balance of S.Kumar & Co, as on 31% March, 2010. Particulars Rs. Capital 1,00,000 Buildings Drawings Furniture & Fittings Motor Van Loan from Hari @ 12% interest Interet paid on above loan Sales Purchases Opening Stock Establishment expenses Wages Insurance 15,000 1,00,000 [Conta... ‘Commission 7,500 8. Debtors 28,100 Bank Balance 20,000 S. Creditors 10,000 Total 232,500 | 2,32,500 Consider the adjustments (@) Closing Stock is Rs. 32,000. (©) Outstanding wages Rs. 500. (©) Prepaid Insurance Rs. 300. (@) Commission received in advance Rs. 800 (©) Allow interest on Capital @ 10%. (f) Depreciation on Building @ 2.5%, Funiture and Fittings @ 10%, Motor Van @ 10%. (@ Charge Interest on Drawing Rs. 500. ‘How does management accounting helps in planning and controlling the functions of an organization and also discuss the utility of budgetary control OR The standard material cost to produce one ton of a chemical in ABC Chemicals is as follows 300 kg. of A @ Rs. 10 per kg 600 kg. of B@ Rs. 5 pes kg 500 kg. of C @ Rs. 6 per kg, During a period 100 tons of chemicals were produced fiom the usage of 35 tons of A @ Rs. 9,000 per ton 42 tons of B @ Rs. 6,000 per ton 53 tons of C @ Rs. 7,000 per ton Calculate material variances and also explain the utility of other variances, 7027) . 3 [Contd...4 — (x) A certain project is composed of nine activities where time estimates, in weeks, are as given below, Expected Duration 1 week Activity Optimistic Most Pessimistic likely 1-2 1 1 7 1-3 3 5 7 1-4 2 2 8 2-5 1 1 1 3-5 3 6 9 4-6 2 5 8 5-6 4 6 14 6-7 6 8 10 5-7 3 1 u Draw the project network and trace all the possible paths from it. What is the expected minimum project length ? (y) Explain Vogel's approximation method (2) Applications of PERT and CPM in project planning and control. EE-7024] 6 {Contd... () (a) (e) © () (h) EE-7024] ® What are the main features of a two-person- zero sum game ? Explain with the help of an example, How CPM is different from PERT ? Explain” with suitable example. ‘What is Monte-Carlo simulation? Explain by. an illustration. Outline the steps involved in the Simplex method for solving a linear programming problem. Define the various methods for finding initial feasible solution of a transportation problem and state the advantages and disadvantages. In what areas of management can Markov processes be used for analysis ? Explain how it can be used for predicting salesforce requirements Shri Ram Chemical Company produces two 14 compounds A and B, The following table gives. the units of ingredients C and D per kg. of compounds A and B as well as minimum requirements of C and D and cost per kg of A and B, Using the Simplex method, find the 3 {Contd...quantities of A and B which would. give a (2) _ Explain the meaning 'Crashing of networks’ and i st + : a supply of C and D at minimum cos state its usefulness in business decision making. ‘Compounds | Minimum Ingredient [~A___B_ | Requirement e 7 3 30 4 (a) Give the following transition matrix, 4 D 3 1 15 determine the equilibrium market share for Cost per kg [4 6 each company (b) What do you mean by pure and mixed strategy game ? (©) Narrate the objectives of using Network analysis, x Y Z and explain the significance of dummy activities. X (025 0.25 0.50 oR : Y |0.05 085 0.10 Z\o.10 020 0.70 3 (x) _ Solve the following two person zero sum game 1m terms of optimal strategies for both players and the value of game (b) ‘Operation Research advocates a system Player B approach and is concerned with optimization. Player A[B, By By By iB It provides a quantitative analysis for decision Ay 2. 4 6 3S dine A 34 4 1 0 making,’ Comment. (©) ‘Operation Research is no more than a (y) What are the advantages and disadvantages of Monte Carlo simulation as a problem solving technique ? OR quantitative analysis of the problem.’ Explain. EE-7024] 4 [Contd. EE-7024] 5 [Contd...MBA-104 Printed Pages : 3 Paper ID and Roll No. to be filled in your Answer Book Roll No. [r To [> Ie [e [s[o[- [2 3h M.B. A. (SEM. !) (ODD SEM.) EXAMINATION, 2010-11 FINANCIAL & MANAGEMENT ACCOUNTIN PAPER ID: 7027 Time : 3 Hours} [Total Marks : 70 1 The following ratios have been worked out for the year 2007- 2008 for Anant Chemicals Ltd. as also for Chemical Industry as a whole in the country. Assuming that most of the units in the industry are comparable, write an analytical report on the profitability and financial health of Anant Chemicals Ltd. Anant Chemical Chemicals Industry Ltd. (@) Current Ratio WS one ded () Quick Ratio oe LRaassine 12 (©) Inventory Tumover Ratio.......8 times...... 5 times @ Operating Ratio sw 1 T% 20% (© Net Profit Ratio 12% 10% © Dividend Payout Ratio 60% 10% (®) Debt-equity Ratio... Bokc..1.5 (h) Average Collection Period... 40 days ...60 days @ Return on capital employed ....9% 1% 7027) 1 \ {Contd.,ie 2 3 4 ‘Write short notes (upto fifty words) on 3 any four of the following : (3 marks each) _(@) Double entry system (®) Flexible budget ©)” Uses of BEP analysis (@) Financial reporting (©, Classification of cost (® Accounting concepts (® - Preparation of cash flow statement _H) Responsibility accounting “Accounting is concerned with the process 14 of recording, classifying, summerising and interpreting, the financial transactions". Critically examine the above statement and discuss the nature and scope of financial accounting. OR ~3-_ In each of the following cases, name and explain 14 the accounting principle under which an accountant is justified (®)._ Indeferring an expenditure to be charged against future profit. (0) In maintaining a separate account in the name of @ proprietor. (©) In showing asset at cost, (@)_ In recording the total cost of a paper weight as revenue expenditure. c () "Accounting ratios are mere guides and 7 complete reliance on them in decision making © sucidal", Blucidate. 7027) 2 [Contd... 2 ) @ i) "Cash flow statement is useful in long as well 7 as short term financial analysis of the enterprise.” In the light ofthis statement discuss the importance of cash flow statement to different stakeholders, Why ate price level adjustments required? 7 Describe different methods used for’ such adjustments. ~ Define responsibility centre. Why are they 7 created? Explain the various kinds of responsibility centres, 3 [3180 ](©) EE-7027} A company is presently operating at 50% 7 capacity and producing 800 units. The cost structure is as follows Cost per unit (Rs) Material 160 Labour 80 Direct expenses 15 Administrative expenses 100 Selling and Distribution expenses 75 Total cost per unit 430 60% of administrative expenses and 40% | of selling and distribution expenses are fixed. Prepare a flexible budget and ascertain cost per unit at 75% and 100% capacity utilization. 8 [2260] rAy74 Printed Pages : 8 in your Answer Book MBA-104 |, Paper 1D and Roll No. to be fi Time : 3 Hours] Note : EE-7027} 1 Ee) Roll No. {5]% [3 [6 [ol Slo Jo [o] 4 M.B. A. (SEM. !) (ODD SEM.) EXAMINATION, 2009-10 FINANCIAL & MANAGEMENT ACCOUNTING [Total Marks : 70 Use of Calculator is permitted SECTION - A Attempt any four of the following (a) ‘Debits are bad, Credits are good’ 3.5 Comment on this statement. (b) "Measurement of business income requires 3.5 matching of cost with revenue.” - Explain. (©) "A trial balance assumes that the amounts in 3.5 the financial statements are correct." Do you agree ? - Explain, (d) State whether each of the following is ‘True’ 3.5 or False! () Accounting principles are rules of action or conduct, which are adopted by the accountants universally while recording accounting transactions [Contd...© ii) _Itis on the basis of going concern concept that the asseis are always valued at market price. The convention of disclosure implies that all material information should be disclosed in the accounts. (iv) The convention of conservatism takes into account all prospective profits but leaves all prospective losses. (¥) In accounting all business transactions are recorded as having a dual aspect, (vi) The "Posting" is done in the Journal (vii) Ledger is a set of accounts. Explain the rules regarding posting of transactions into the ledger. SECTION -B 2 Attempt any four of the following : @ Define responsibility accounting, 3.5 (b) What do you mean by Tender Price ? How 3.5 BE-7027) is it calculated ? Additional information : (i) Depreciations of Rs. 10,000 and Rs. 20,000 have been charged on plant and land and building respectively in 1992, (ii) An interim dividend of Rs. 20,000. has been paid during the year. (iii) Income-tax Rs. 35,000 has been paid during the year 1992. SECTION - E S Attempt any two of the following @ (b) EE-7027] "Cost Accounting system is neither unnecessary 7 nor expensive, rather it is a profitable investment.” - Comment. Ina factory, 100 workers are engaged and the average rate of wage is SO paise per hour. Standard working hours per week are 40 and the standard performance is 10 units per gang hour. During a week in March, wages paid for 50 workers were at the rate of 50 paise per hour, 10 workers at 70 paise per hour and 40 workers 40 at 40 paise per hour. Actual output - was 380 units. The factory did not work for five hours due to break-down of machinery, Calculate appropriate labour variances. 1 [Contd...3° SECTION -C Attempt any two of the following ; Write off Rs, $00 as bad debts anu maintain (2) The trading results of a company for the the reserve for bad debts at Rs. 1.150 last two years are given: below Unexpired insurance amounted to Rs, 300. [Year ] Sales | Profit Sales include Rs. 500 worth of goods taken out [2003 | 150 takh [78 lakh by the proprietor for personal use. 2004 | 200 lakh | 30 lakh Depreciate Machinery by 10% and Furniture at 5% You are required to calculate (©) Discuss the basic ‘concepts! and conventions of (i) Break-even sale (ii) Profit when sales in accounting, What are the limitations of traditional Rs, 100 lakh. (ii) Required sales to ean a financial accounting system ? profit of Rs. 50 lakh. SECTION - D (b) From the following trial balance of [Attempt any two of the followine Mr. Mahesh, prepare Trading and Profit and (a) Deserbe the meaning of budget, budgeting oan sean ear ended 31 oe and budgetary control, Why budgetary control . is known as control techniques ? Particulars Re Rs. (b) The Balance sheet of Sriram Ltd., as on Capital 2 60,000 31-12-2002 is as follows Sundry expenses 5.400 = ‘Manufacturing expenses... 1.500 ilities Rs. | Assets Rs. Reserve for bad debts 1,000 Equity share Land and Productive wages 21,500 capital (shares buildings 6.0.000 Office Rent 2,000 of Rs.10 cach 5,00,000 } Plant and Plant and Machinery 28,000 10% preference Machinery 5.00.00, Furniture and Fittings 10,000 shares capital Stock in trade 2.40,000 surance io) (share of Sundry’ debtors | 1.95,000 Bills reccivables/payables 3,300 4200 Rs.100 each) | 2,00,000 | Cash in hand 60,00 Factory rent 4,000, Reserves. and Propaid expenses 5,000 Paeres 16,000 surplus 300,000 Carriages inward 1,500 12% debentures “ Carriages outward 1.700 {Rs.100 cack | 4,00,000 | Cash in hand a Sundry creditors | 1,50,000 | Sundry debtors/Creditors 23,500, 14,300, Bank ‘draft ° 0.000 Purchases/Sales 68,000 . snieaeat Ze | - 5 Opening stock 1,40,500, 16,00,000 16,00,000 | Drawi EE-7027)" mus 4 [Contd... 7027] 5 {Contd... ‘Take into account the following adjustments Closing stock amounted to Rs, 27,000 @Current ratio Liquid ratio iii) Debt-equity ratio, (iv) Capital Gearing ratio (v) Proprietory ratio. (©) From the following balance-sheets of A Ltd, 7 make out (i) Statement of changes in the working capital and (i) funds flow statement : A Ltd, Balance Sheet Liabilities and Assets 1991 1992, Rs. Rs. Liabilities Equi y share capital 3,00,000 | 4,00,000 “| 8% “deemable preference sh ve capital 1,50,000 41,00,000 General Reserve 40,000 70,000 Profic and Loss A/e 30,000 48,000 Propased dividend 42,000 50,000 Creditors 53,000 83,000 Bills payable 20,000 16,000 Provisions for Tamatior 40,000 50,000 Total 6,77,000 | 8,17,000 Assets Goodwill 115,000 90,000 Land and Buildings 2,00,000 1,70,000 Plant 80,000 | 2,00,000 Debtors 1,60,000 2,00,000 Stock 77,000 109,000 Bills receivable 20,000 30,000 Cast in hand 15,000 10,000 Cast at bank 10,000 8,000 Tota 6,77,000 | _8,17,000 BE-7027] 6 [Contd... (©) Correct the following trial balance : 3.5 Particulars ‘Amount | Particulars Amounts Rs. Rs. Cash at bank 2,600 | Cash in hand 1,400 Buildings 60,000 } Sundry debtors 86,000 Motor car 20,000 | Opening stock 62,000 Suadry creditors | 43,000 | Fumiture and Loan from Vinay | 30,000 | fixtures 21,400 Bad debt reserve | 30,000 | Office equipments | 16,000 Purchases 1,40,000 | Salaries 11,000 Purchases retum 2,600 | Freight on purchases} 1,200 Sales 2,30,000 | Carriage outwards | 2,000 Sales return 4,200 | Drawings 12,000 Rent for Godown | 5,500 | Printing and Interest on loan Stationery 1,800 from Vinay 2,700 | Electric charges 2,200 Rates and Taxes | 2,100 | Insurance premium | 5,500 Discount allowed | 2,400 | General expenses 3,000 Discount received | 1,600 | Bad debis 2,000 Capital account | 1,62,000 | Bank charges 1,600 Motor car expenses | 3,600 Total 4,72,200 | Total /4,72,200 (a) Briefly state four uses of the statement of 3.5 cash flows. (©) Define fixed cost, variable cost, semi-variable 3.5 cost and give examples of each one of them. EE-7027] 3 {Contd...