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MB0041 Fall Drive Assignment 2011
MB0041 Fall Drive Assignment 2011
Master of Business Administration - MBA Semester 1 Subject Code MB0041 Subject Name Financial and Management Accounting 4 Credits
(Book ID: B1130)
25. Withdrew from bank for private expenses Rs. 1,500 26. Purchased machinery from Rajiv for 5,000 and paid him by means of a bank draft purchased for Rs. 5,005 27. Issued cheque to Ram Saran for cash purchased of furniture Rs. 1,575 28. Received a cheque for commission Rs. 500 from R.& Co. and deposited into bank 29. Ramesh who owned us Rs. 500 became bankrupt and paid us 50 paise in the rupee 30. Received payment of a loan of Rs. 5,000 and deposited Rs. 3,000 out of into bank 31. Paid rent to landlord Mohan by cheque of Rs. 220 31. Interest allowed by bank Rs. 30 31. Half-yearly bank charges Rs. 50 Q.4 Choose an Indian Company of your choice that has adopted Balance Score Card and detail on it. [10 Marks] Q.5 From the following data of Jagdish Company prepare (a) a statement of source and uses of working capital (funds) (b) a schedule of changes in working capital Assets Cash Short-term investment Debtors Stock Long term Investment Machinery Building Land Total Liabilities and Equity Accumulated depreciation Creditors Bills Payable Secured loans Share capital Share premium Reserves and surplus Total 2008 1,26,000 42,400 60,000 38,000 28,000 2,00,000 2,40,000 14,000 7,48,400 1,10,000 40,000 20,000 2,00,000 2,20,000 24,000 1,34,400 7,48,400 Income statement Sales 2,40,000 2007 1,14,000 20,000 50,000 28,000 44,000 1,40,000 80,000 14,000 4,90,000 60,000 30,000 10,000 1,00,000 1,60,000 Nil 1,30,000 4,90,000
Cost of goods sold Gross Profit Less Operating expenses: Depreciation machinery Depreciation building Other expenses Net profit from operation
Gain on sale on long-term investment Total Loss on sale of machinery Net Profit
Adjustments: 1) Machinery worth Rs.70000 was purchased and worth Rs.10000 was sold during the year [Accumulated depreciation on machinery is Rs.18000 after adjusting depreciation on machinery sold]. Proceeds from the sale of machinery were Rs.6000 2) Dividends paid during the year Rs.11600 [ 10 Marks] Q.6 What is a cash budget? How it is useful in managerial decision making? [10 Marks]
Master of Business Administration - MBA Semester 1 Subject Code MB0041 Subject Name Financial and Management Accounting 4 Credits
(Book ID: B1130)
Sales Cost of Goods Sold Debtors Inventories Cash Other current assets Current liabilities
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 debtors of Rs..2500 and inventory of Rs.3000. Q.2 [10 Marks]
examples (preferably firm name and product) for each method of costing. [10 Marks] Q.3 State the importance of differentiating between the fixed costs and variable [10 Marks]
costs in managerial decision. Q.4 2009 Name of the account Sundry debtors Bad debts Additional Information Dr 2,05,000 3,000 Cr
Following are the extracts from the trial balance of a firm as at 31st March
1) After preparing the trial balance, it is learnt that Mr.X a debtor has become insolvent and nothing could be recoverd from him and, therefore the entire amount of Rs.5,000 due from him was irrecoverable. 2) Create 10% provision for doubtful debt. Required: Pass the necessary journal entries and show the sundry debtors
account, bad debts account, provision for doubtful debts account, P&L a/c and Balance sheet as at 31st March 2009. [10 Marks]
Q.5 A change in credit policy has caused an increase in sales, an increase in discounts taken, a decrease in the amount of bad debts, and a decrease in investment in accounts receivable. Based upon this information, the companys (select the best one and give reason) 1) Average collection period has decreased 2) Percentage discount offered has decreased 3) Accounts receivable turnover has decreased 4) Working Capital has increased. [10 Marks] Q.6 Identify the users of accounting information. [10 Marks]