Reg.

No
M.P.NACHIMUTHU M.JAGANATHAN ENGINEERING COLLEGE
SUDHANANDHEN KALVI NAGAR.
CHENNIMALAI, ERODE – 638 112.
DEPARTMENT OF MANAGEMENT STUDIES
INTERNAL TEST – I
Subject Code & Name: BA4104 – ACCOUNTING FOR DECISION MAKING
Date: 12/12/2022 Semester: I
Time: 1 Hour 30 Minutes Maximum Marks: 50
Answer ALL Questions COs BTL
PART- A (10*2=20 Marks)
1 How does accounting differ from book keeping? 1 K1
2 State the need for preparing a Trial Balance. 1 K2
3 What are accounting concepts? 1 K1
4 What are Accounting Principles? 1 K2
5 What are the objectives of financial accounting? 1 K2
6 Define Cashflow analysis. 2 K2
7 Define Dupont analysis. 2 K1
8 Define Fund Flow Statement. 2 K2
9 From the following compute current ratio: 2 K5
Particulars Rs Particulars Rs
Stock 36,500 Prepaid expenses 1,000
Sundry debtors 63,500 Bank overdraft 20,000
Cash in hand and bank 10,000 Sundry creditors 25,000
Bills receivable 9,000 Bills payable 16,000
Short-term investments 30,000 Outstanding expenses 14,000
10 Calculate liquid ratio: 2 K5
Rs
Current assets 10,000
Stock 1,500
Prepaid expenses 500
Current liabilities 4,000

PART-B (3*10=30 Marks) COs BTL

11 A) Following are the Trial balance extracts of a company as on 31st March. Pass 1 K3
necessary journal entries and show the relevant account.
Debit (Rs) Credit (Rs)
Sundry Creditors - 4,02,000
Discount - 2,000
Reserve Discount on Creditors 3,600 -
Additional information:
i) Additional discount received from creditors after closing the
accounts Rs.2,000.
ii) Maintain a reserve for discount on creditors @ 3%.
(OR)
From the following Trial Balance prepare a Trading, Profit and Loss Account
B) and Balance Sheet. 1 K3
Particulars Amount
Salaries 36,000
Repairs 2,500
Cash 1,000
Interest received 3,000
Interest paid 24,000
Debtors 38,000
 Bills payable 4,000
Opening Stock 30,000
Bank Overdraft 3,10,000
Carriage in 2,000
Creditors 4,500
Travelling Expenses 5,000
Returns Outwards 4,000
Machinery 2,10,000
Building 4,50,000
Sales 3,80,000
Returns Inward 5,000
Capital 2,43,000
Purchases 1,45,000
Adjustments:
Depreciation on Machinery – 10% p.a
Closing Stock – Rs 10,000.
12 A) From the following details, find out (i) Sales, (ii) Debtors, (iii) Creditors, and 2 K5
(iv) Closing stock.
Stock turnover – 8 months
Debtors turnover – 3 months
Creditors turnover – 2 months
Gross profit ratio – 25%
Gross profit is Rs. 2,00,000. Bills receivable Rs. 12,500. Bills payable Rs.
5,000. Closing stock is Rs. 5,000 more than the opening stock.
(OR)
B) The following is the Balance Sheet of Fullerton Ltd. Prepare a common size 2 K3
statement and interpret the results.
March 2021 March 2022
Particulars Amount Amount
(Rs. In ‘000s) (Rs. In ‘000s)
Assets
Cash 1,200 2,350
Accounts Receivable 6,000 4,000
Inventory 8,000 10,000
Prepaid Expenses 300 120
Land 4,000 4,000
Buildings and Equipment 12,000 8,500
Total Assets 16,000 12,500
Liabilities and Shareholder’s
Equity
Accounts payable 5,800 4,000
Accrued payables 9,000 400
Notes payable, short term 300 600
Long term liabilities – Bonds
7,500 8,000
payable (8%)
Preference shares, Rs.100, 6% 2,000 2,000
Common stock (Equity shares, Rs.
6,000 6,000
12 face value)
Additional paid up capital 1,000 1,000
Retained earnings 8,000 6,790
Total Liabilities and Shareholder’s
31,500 28,970
Equity
13 A) Prepare the Cash Flow Statement based on the following. 2 K3
Amount
Amount
Rs.
Rs.
Particulars In
In Millions
Millions
(2020)
(2021)
Current Assets
Cash 26 10
Accounts Receivable 180 270
Inventory 205 160
Prepaid expenses 17 20
Fixed Assets
Property, Plant and
Equipment 430 309
Less : Accumulated
Depreciation 218 194
Net Property, Plant and
Equipment 212 115
Long term investment 60 75
Total Assets 700 650
Liabilities and Shareholder’s
Equity
Current Liabilities
Accounts Payable 230 310
Accrued liabilities 70 60
Income Taxes payable 15 8
Long term Liabilities
Bonds payable 135 40
Shareholder’s Equity
Common Stock (Equity Shares) 140 140
Retained Earnings 110 92
Total Liabilities and
700 650
Shareholder’s Equity
(OR)
B) Prepare Funds flow statement for a company from the following information 2 K3
for the year ended 31st December.

Liabilities 2019 2020 Assets 2019 2020

Share capital 8,00,000 10,00,000 Fixed assets 6,00,000 6,20,000
Debentures 1,00,000 3,00,000 Investments - 80,000
Reserves 5,00,000 7,00,000 Cash 12,00,000 13,00,000
Creditors 12,00,000 10,00,000 Inventories 7,00,000 8,00,000
Debtors 1,00,000 2,00,000
26,00,000 30,00,000 26,00,000 30,00,000

CO 1 A thorough grounding of financial accounting concepts

CO2 Preparation of financial statement analysis
K1-Remembering K3- Applying K5- Evaluating
K2- Understanding K4- Analyzing K6- Creating

Course Instructor Course Coordinator HoD/MBA Principal