Spring 2011(Feb-July)

Master of Business Administration - MBA Semester 1

SubjectCode±MB0041
SubjectName±Financial andManagement Accounting

4 Credits
(Book ID: B1130)
Assignment Set- 1 (60 Marks)
For Solved Assignment Please Email
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Note: Each question carries 10 Marks. Answer all the questions.

Q.1 Assure you have just started a Mobile store. You sell mobile sets and
currencies ofAirtel,Vodaphone,Reliance and BSNL. Take five transactions
and prepare a position statement after every transaction. Did you firm earn
profit or incurred loss at the end? Make a small comment on your financial
positionattheend. [10 Marks]
Q.2a. Listtheaccountingstandards issuedbyICAI. [5 Marks]
2b. Write shortnotes ofIFRS. [5 Marks]
Q.3 Prepare aThree-column CashBook ofM/s Thuglak& Co.from
Thefollowingparticulars: [10 Marks]
20X1Jan 1. Cashin handRs.50,000,Bank OverdraftRs.20,000
2. Paid into bank Rs.10,000
3. BoughtgoodsfromHari for Rs,200foreach
4. BoughtgoodsforRs.2,000paid chequeforthem,
discount allowed1%
5. Sold goodstoMohanforeach Rs.1.175
6. Receiveda chequefromShyam to whomgoods were
sold forRs.800.Discountallowed12.5%
7. 6 K\DP¶V FKHTXHdepositedinto bank
8. Purchasedanold typewriter forRs.200 ,SpentRs.50
onits repairs
9. %DQN QRWLILHGWKDW6K\DP¶V FKHTXHKDVEHHQUHWXUQHG
dishonoredand debitedtheaccountin respectof
charges Rs.10
10. Receiveda money orderRs.25fromHari
11. Shyam settledhisaccount bymeans ofachequefor
Rs.820,Rs.20beingforinterestcharged.
12. Withdrewfromthebank Rs.10,000
18. Discounted a B/EforRs.1,000at1%through bank
20. Honored ourown acceptance bychequeRs.5,000
22. WithdrewfirpersonaluseRs.1,000
24. Paid treadexpenses Rs.2,000
 Spring 2011(Feb-July)

25. Withdrewfrombankfor private expenses Rs.1,500

26. PurchasedmachineryfromRajivfor5,000 and paid him
bymeans ofabankdraftpurchasedforRs.5,005
27. Issuedchequeto RamSaranforcashpurchasedof
furniture Rs.1,575
28. Receiveda chequefor commissionRs.500 from R.&
Co. and depositedinto bank
29. Rameshwhoowned us Rs.500becamebankruptand
paid us 50paise intherupee
30. Receivedpaymentofa loanofRs.5,000and deposited
Rs.3,000 outofinto bank
__.3DLG UHQWWRODQGORUG ³0RKDQ´E\FKHTXHRI5V.___
31. Interestallowedbybank Rs.30
31. Half-yearlybankchargesRs.50

Q.4 ChooseanIndianCompanyof yourchoicethathas adoptedBalance Score

Card and detailonit. [10 Marks]

Q.5 FromthefollowingdataofJagdishCompanyprepare (a)a statementof

source andusesofworkingcapital(funds) (b)a schedule ofchanges inworking
capital

Assets 2008 2007

Cash 1,26,000 1,14,000
Short-terminvestment 42,400 20,000
Debtors 60,000 50,000
Stock 38,000 28,000
LongtermInvestment 28,000 44,000
Machinery 2,00,000 1,40,000
Building 2,40,000 80,000
Land 14,000 14,000
Total 7,48,400 4,90,000
Liabilities and Equity
Accumulateddepreciation 1,10,000 60,000
Creditors 40,000 30,000
Bills Payable 20,000 10,000
Securedloans 2,00,000 1,00,000
Share capital 2,20,000 1,60,000
Share premium 24,000 Nil
Reserves and surplus 1,34,400 1,30,000
Total 7,48,400 4,90,000

Income statement
Sales 2,40,000
 Spring 2011(Feb-July)

Cost ofgoodssold 1,34,600

Gross Profit 1,05,200
Less Operatingexpenses:
Depreciation ±machinery 20,000
Depreciation ±building 32,000
Otherexpenses 40,000 92,000
Net profitfromoperation
13,200
Gain on sale on long-terminvestment 4,800
Total 18,000
Loss onsale ofmachinery 2,000
Net Profit 16,000

Adjustments:
1) Machineryworth Rs.70000was purchasedandworthRs.10000was sold
duringtheyear [Accumulated depreciation onmachineryis Rs.18000 after
adjusting depreciationonmachinerysold].Proceeds fromthesale of
machinerywere Rs.6000
2) Dividends paid duringthe yearRs.11600 [ 10 Marks]

Q.6 Whatis a cashbudget? Howitis usefulin managerialdecisionmaking?

[10 Marks]

Master of Business Administration - MBA Semester 1

SubjectCode±MB0041

SubjectName±Financial andManagement Accounting

4 Credits

(Book ID: B1130)

Assignment Set- 2 (60 Marks)

Note: Each question carries 10 Marks. Answer all the questions.

Q.1 Selected financialinformationaboutVijaymerchantcompanyis givenbelow:

2010 2009
 Spring 2011(Feb-July)

Sales 69,000 43,000

Cost ofGoodsSold 57,000 32,500

Debtors 7,200 3,000

Inventories 11,400 5,500

Cash 1,500 800

Othercurrentassets 4,000 2,700

Currentliabilities 16,000 11,000

Compute the current ratio, quick ratio, average debt collection period and inventory

turnover for 2009 and 2010. State whether there is a favorable or unfavorable

change in liquidity from 2009 to 2010. At the beginning of 2009, the company had

debtorsofRs..2500andinventory of Rs.3000. [10 Marks]

Q.2 Explain different methods ofcosting.Youranswer should bestudded with

examples (preferablyfirmname andproduct) foreach methodofcosting.

[10 Marks]

Q.3 State theimportanceofdifferentiatingbetween the fixedcostsandvariable

costsin managerialdecision. [10 Marks]

Q.4 Followingare theextracts fromthetrialbalance ofafirmas at31stMarch

2009

Name of the account Dr Cr

Sundrydebtors 2,05,000

Baddebts 3,000

Additional Information

1) Afterpreparingthetrialbalance, it is learnt thatMr.Xadebtorhas become

insolventand nothingcould be recoverd fromhimand,therefore theentire

amountofRs.5,000 duefromhimwas irrecoverable.

2) Create 10% provisionfordoubtfuldebt.

Required: Pass the necessary journal entries and show the sundry debtors
 Spring 2011(Feb-July)

account,baddebtsaccount,provisionfordoubtfuldebtsaccount,P&La/cand

Balance sheetas at31stMarch 2009. [10 Marks]

Q.5 Achange in creditpolicyhas causedanincrease in sales,anincrease in

discounts taken,adecreasein theamountofbaddebts,anda decreasein
investmentin accounts receivDEOH. %DVHG XSRQWKLV LQIRUPDWLRQ,WKHFRPSDQ\¶V
(selectthebestone andgive reason)
1) Average collection period has decreased
2) Percentagediscountofferedhasdecreased
3) Accounts receivable turnover has decreased
4) WorkingCapitalhas increased.
[10 Marks]

Q.6 Identifytheusers ofaccountinginformation. [10 Marks]