April 2013 (Summer drive)

Bachelor of Computer Application (BCA) Semester 3

BC0044 Accounting and Financial Management 4 Credits
(Book ID: B0805)
(60 Marks)

Answer the following questions:

1. What are the basic accounting concepts ? Explain their implications.
(10 Marks)
2. Explain various techniques of inventory management.

(10 Marks)

3. Efficient cash management will aim at maximizing the availability of cash

inflows by decentralizing collections and decelerating cash outflows by
centralizing disbursements Discuss.

(10 Marks)

4. Enter the following transactions in a cashbook with cash, bank and discount
columns.

(15 Marks)

2008
Jan.1 Commenced business with Rs.16,000 in cash
Jan.2 Paid into bank Rs. 14,500
Jan.3 Bought goods for Rs. 3,850 and paid by cheque.
Jan.4 Bought furniture for cash Rs. 680
Jan.5 Sold goods for cash Rs. 2,600 and deposited the same into bank.
Jan.10 Bought goods for Rs. 4,850 and paid by cheque.
Jan.11 Bought stationery for Rs. 185
Jan.15 Received cash from Hegde Rs.680 allowing him a discount of Rs. 20
Jan.20 Paid Raj his dues by cheque Rs. 240 receiving a discount of Rs.10
Jan.25 Paid Chandra by cheque Rs. 400
Jan.26 Sold goods for cash Rs. 585 and remitted the same into the bank.

Jan.27 Our cheque to Chandra returned dishonored.

Jan.29 Drew cheque for salary Rs. 2,365
Jan.31 Drew cheque for personal use Rs 100
5. The following financial information is furnished by Aditya Mills Ltd. for the
current year :

(15 Marks)

Balance Sheet as on 31-3-2008

Liabilities
Equity Share Capital

Amount Assets

Amount

1000000 Plant & Equipment

640000

Retained Earnings

368000 Land & Buildings

80000

Sundry Creditors

104000 cash

160000

Bills Payable

200000 Sundry Debtors

320000

Other Current Liabilities

20000 Stock

480000

Prepaid Insurance
1692000

1692000

Income statement as on 31-3-2008

Sales

4000000

Less : Cost of Goods Sold

3080000

Gross Profit

920000

Less : Operating Expenses

680000

Operating Profit

240000

Less : Taxes (0.35)

Net Profit after taxes

Calculate :
(i)

Current ratio

12000

84000
156000

(ii)

Acid-Test ratio

(iii)

Stock Turnover Ratio

(iv)

Debtors Turnover Ratio

(v)

Creditors Turnover ratio

(vi)

Gross Profit Ratio

(vii)

Net Profit Ratio

(viii)

Return on equity capital