Code No: OR-15/MCA OR

MCA-I Semester Supplementary Examinations,

July/Aug 2008.

ACCOUNTING AND FINANCIAL MANAGEMENT

Time: 3hours Max. Marks: 60

Answer any FIVE questions

All questions carry equal marks
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1. Explain documents used for data collection, processing of different

files and outputs obtained through computerised accounting
system.

2. Explain various accounting concepts. Differentiate between single

entry book-keeping and double entry book-keeping.

3. Explain the meaning and scope of financial management. Compare

and contrast profit maximisation and wealth maximisation.

4. From the following particulars prepare the Trading Account and

Profit and Loss A/C for the year ended 31st Dec, 03 and the
Balance sheet as on that date:

Contd…2
Code No: OR-15/MCA ::2::

Trial Balance as on 31.12.03

Particulars Debits (Rs) Credits (Rs)

Capital A/C - 50,000
Sales A/C - 175,000
Creditors A/C - 25,000
Bills Payable A/C - 20,000
Returns outward A/C - 5,200
Interest A/C - 500
Provision for doubtful debts A/C - 2,200
Purchases A/C 75,000 -
Returns inward A/C 1,000 -
Carriage inward A/C 500 -
Carriage outward A/C 700 -
Rent A/C 2,500 -
Stock A/C 15,000 -
Debtors A/C 40,000 -
Salary A/C 11,500 -
Wages A/C 10,000 -
Printing & Stationary 300 -
Bills receivable A/C 11,000
Plant & Machinery A/C 50,000
Furniture A/C 10,000
Advertisement A/C 500
Bad debts A/C 500
Investments A/C 20,000
Cash at Bank A/C 29,300
Cash in hand A/C 100
2,77,900 2,77,900

i) Closing stock valued at Rs 15000 is to be taken into account

ii) Plant and machinery is to be depreciated at 10% and furniture
at 15%
iii) A further bad debt of Rs 500 is to be written off
iv) Provision for doubtful debts is to be maintained at 4% on
sundry debtors.
v) Interest earned but not received within accounting year Rs.
500.

Contd…3
 Code No: OR-15/MCA ::3::

5. The following are the summarized Balance sheet of V. Ltd. as at

31st Dec previous year and current year.

Liabilities Previous Current Assets Previous Current

year year year year
Share 2,00,000 2,60,000 Goodwill - 20,000
capital
Profit & 39,690 41,220 Machinery 1,12,950 1,16,200
Loss A/C
Reserves 50,000 50,000 Buildings 1,48,500 1,44,250
Tax 40,000 50,000
Provision
Bank over 59,510 - Stock 1,11,040 97,370
draft
Bills 33,780 11,525 Sundry 87,490 73,360
payable debtors
Sundry 39,500 41,135 Cash 2,500 2,700
creditors
462480 453880 462480 453880

The following additional information is obtained from the general

ledger:
a) During the current year an interium dividend of M 26 000 was
paid.
b) The assets of another company were purchased for Rs 60,000
payable in fully paid shares of V. Ltd. These assets include stock
Rs. 22,000 and machinery 18000. In addition sundry purchases of
machinery amounted to Rs 5600.
c) Income-Tax paid during the year amounted to Rs 25 000.

Prepare statement of changes in working capital, Funds Flow

Statement and cash flow statement.

6. From the following details prepare the Balance sheet of the firm
concerned:
Stock velocity = 6, capital turnover Ratio = 2
Fixed assets turnover Ratio = 4, Gross Profit = 20%,
Debt Collection Period = 2 months, Creditors payment period = 73
days. The gross profit was Rs 60,000. Closing stock Rs. 5000 in
excess of the opening stock.
 Contd…4

Code No: OR-15/MCA ::4::

7. The fixed cost of a firm is Rs 200 000 per annum. The variable cost
per unit is Rs 7/- and selling price is Rs 12. Find out the break-even
point in units and value. What will be the new BEP if selling price
increases by 20%. Verify your results in both the cases. Prepare
Break-Even chart.

8. Ultra Modern Cassette Ltd., had budgeted the following sales for
Feb, 2001

Casette A 1100 units @ Rs 50/- per unit

Casette B 950 units @ Rs 100/- per unit
Casette C 1250 units @ Rs 80/- per unit

As against this, the actual sales were:

Casette A 1300 units @ Rs 55/- per unit

Casette B 1000 units @ Rs 95/- per unit
Casette C 1200 units @ Rs 78/- per unit

The cost per unit of Casette A, B and C was Rs. 45, Rs. 85 and
Rs.70 respectively. Compute sales variances by value method and
verify your results. What references can be drawn from your
calculations.

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