DRIVE PROGRAM SEMESTER SUBJECT CODE & NAME BK ID CREDITS MARKS

ASSIGNMENT WINTER 2013 MBADS/ MBAFLEX/ MBAHCSN3/ MBAN2/ PGDBAN2 1 MB0041 FINANCIAL AND MANAGEMENT ACCOUNTING B1624 4 60

Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.

Q.No

Questions

Marks

Total Marks

Give the classification of Accounts according to accounting equation approach with its meaning and examples. Compare the traditional approach with modern approach of accounting equation approach. Analyze the transaction under traditional approach. a. b. c. d. e. f. g. h. 20.1.2011 Paid salary Rs. 30,000 20.1.2011 Paid rent by cheque Rs. 8,000 21.1.2011 Goods withdrawn for personal use Rs. 5,000 25.1.2011 Paid an advance to suppliers of goods Rs. 1,00,000 26.1.2011 Received an advance from customers Rs. 3,00,000 31.1.2011 Paid interest on loan Rs. 5,000 31.1.2011 Paid instalment of loan Rs. 25,000 31.1.2011 Interest allowed by bank Rs. 8,000 4 10

Classification of accounting equation approach with meaning and examples Analysis of transaction with accounts involved-nature of accountaffects and debit/credit

The following trial balance was extracted from the books of Chetan, a small businessman. Do you think it is correct? If not, rewrite it in the correct form.
Debits Rs. Credits Rs.

Stock Purchases Returns outwards

8250 Capital 12750 Sales 700 Returns inwards

10000 15900 1590

Discount received Wages and salaries Rent and rates Sundry debtors Bank Overdraft Journal entries of all the transactions Conclusion 3

800 2500 1850 7600 2450

Discount allowed Scooty Carriage charges Sundry creditors Bills payable

800 1750 700 7250 690 6 4 10

From the given trial balance draft an Adjusted Trial Balance. Trial Balance as on 31.03.2011 Debit balances Furniture and Fittings Buildings Sales Returns Bad Debts Sundry Debtors Purchases Advertising Cash Taxes and Insurance General Expenses Salaries TOTAL Adjustments: 1. 2. 3. 4. 5. Charge depreciation at 10% on Buildings and Furniture and fittings. Write off further bad debts 1000 Taxes and Insurance prepaid 2000 Outstanding salaries 5000 Commission received in advance1000 6 4 10 Rs. Credit balances 10000 Bank Over Draft 500000 Capital Account 1000 Purchase Returns 2000 Sundry Creditors 25000 Commission 90000 Sales 20000 10000 5000 7000 20000 690000 TOTAL 690000 Rs. 16000 400000 4000 30000 5000 235000

Preparation of ledger accounts Preparation of trial balance 4

Compute trend ratios and comment on the financial performance of Infosys Technologies Ltd. from the following extract of its income statements of five years.

(in Rs. Crore)

Particulars Revenue Operating Profit (PBIDT) PAT from ordinary activities

2010-11 27,501 8,968 6,835

2009-10 22,742 7,861 6,218

2008-09 21,693 7,195 5,988

2007-08 16,692 5,238 4,659

2006-07 13,893 4,391 3,856

(Source: Infosys Technologies Ltd. Annual Report) Preparation of trend analysis Preparation of trend ratios Conclusion 4 4 2 10

Give the meaning of cash flow analysis and put down the objectives of cash flow analysis. Explain the preparation of cash flow statement. Meaning of cash flow analysis Objectives of cash flow analysis Explanation of preparation of cash flow analysis 2 3 5 10

Write the assumptions of marginal costing. Differentiate between absorption costing and marginal costing. Assumptions of marginal costing (all 7 points) Differences of marginal and absorption costing (Includes all 8 points) 4 6 10