Q.4 QUESTION PAPERS | MBA FIRST SEMESTER EXAMINATION JULY - 2010 Time: 3 Hours Max. Marks: 80 | Note: Answer All Questions PART-A (10 x 2= 20 Marks) 1. (a) Separate entity concept 5 . (b) Accounting eycle i} (c) Tax evasion | (a) LIFO method of inventory valuation (©) Limitations of ratio analysis (© Common size income statement (g) Funds from operations (h) Sources and uses of cash (i) Opportunity cost (i) Features of job costing PART-B (5 x 12 = 60 Marks) i 2. (a) Explain how financial accounting, cost accounting, and management accounting information is : useful to various internal and external users. ! oR (b) Mr X started his business with a capital of ® 2,50,000 on Ist April 2006. He borrowed & 1,50,000 from a bank and % 50,000 from his friend. During the financial year 2006-07 his revenues and expenses amounted to % 2,50,000 and ® 1,60,000, respectively. His fixed assets and curtent assets ate in the proportion of 2:1. If cash in hand is € 80,000 and building is worth ® 2,00,000, prepare his balance sheet at the end of 31st March 2007 to prove the accounting equation that : A=CHL, 3. (@)_ Distinguish between capital and revenue items and state their relevance in preparation and presentation of two financial statements (i., income statement and position statement). OR (b) From the following trial balance and additional information supplied by Mr Arun Kumar, a trader for the year ending 31st March 2008, prepare his final accounts. Trial Balance Dr. ‘ Cr. Particulars @) | Particulars @_ Building 2,80,000 Capital 2,50,000 Furniture 60,000 | Sales 2,65,000 Opening stock Bank loan @ 10% 2,65,000 (1.4.2007) 25,000 interest 1,00,000 | Adver 5,000 Commission 6,000 | Salaries 14,000 | Creditors | 8,000 | Wages 3,000