MB0041 – Financial and Management Accounting Assignment Set - 1 Q1. Explain the process involved in accounting.

See Answer on www.smuSolutions.com Q2. The salaries paid in 2004 is Rs. 5, 00,000; Salaries outstanding is Rs. 20,000; Salaries paid in advance for 2004 is Rs. 30,000. What is the actual salary expenditure for 2004? Which accounting principle is involved in this and explain that principle. See Answer on www.smuSolutions.com Q3. Find the value of the following: a. If the total assets are Rs. 87,000 and the liabilities are Rs. 47,000, find out the amount of capital. b. If the capital of proprietor is Rs. 4,00,000 and the total assets are Rs. 6,00,000, what is the amount of liabilities to outsiders? c. If creditors are Rs. 56,000, bank overdraft is Rs.1,00,000, and outstanding expenses are Rs. 8,000, what is the total amount of assets? d. Fixed assets are Rs.70,000 and current assets are Rs.1,00,000 and the creditors are Rs.30,000. What is capital? See Answer on www.smuSolutions.com Q4. Enter the following transactions in the single column cash book of Gopichand. See Answer on www.smuSolutions.com March, 2003 1st. Commenced business with cash 20000 2nd. Bought goods for cash 5000 3rd. Sold goods for cash 4000 4th. Goods purchased from Ravi Kumar 10000 10th. Paid to Ravi Kumar 7000 14th. Cash sales 8000 18th. Purchased furniture for office 4000 22nd. Paid wages 500 25th. Paid rent 600 30th. Received commission 4000 30th. Withdrew for personal purpose 1000 Cash balance 170000 Hint: Goods Purchased from Ravi Kumar is a credit purchase. Q5. Find out the missing figures.

Office stationery Opening stock Purchased during the year Closing stock 5000 25000 3000

Consumables 8000 ? 6000

Consumed for the year

?

24000

Hint : Office stationery consumed for the year =27000 Consumables purchased during the year = 22000 Q6. Explain the tools of management accounting. See Answer on www.smuSolutions.com MB0041 – Financial and Management Accounting Assignment Set - 2 Q1. Compute trend ratios and comment on the financial performance of Infosys Technologies Ltd. from the following extract of its income statements of five years. (in Rs. Crore) Particulars Revenue Operating Profit (PBIDT) PAT from ordinary activities 2010-11 27,501 8,968 6,835 2009-10 22,742 7,861 6,218 2008-09 21,693 7,195 5,988 2007-08 16,692 5,238 4,659 2006-07 13,893 4,391 3,856

(Source: Infosys Technologies Ltd. – Annual Report) See Answer on www.smuSolutions.com Q2. What is fund flow analysis? What are the objectives of analysing flow of fund? From the following balance sheets of Joy Ltd., prepare a cash flow statement under indirect method. Liabilities Equity share capital 8% redeemable pref. share capital General reserve Profit and loss Proposed dividend Sundry creditors Bills payable Provision for taxation Total Assets Goodwill Land and building Plant Sundry debtors Stock Bills receivable 1,15,000 2,00,000 80,000 1,60,000 77,000 20,000 90,000 1,70,000 2,00,000 2,00,000 1,09,000 30,000 2005 3,00,000 1,50,000 40,000 30,000 42,000 55,000 20,000 40,000 6,77,000 2006 4,00,000 1,00,000 70,000 48,000 50,000 83,000 16,000 50,000 8,17,000

Cash 15,000 Bank Total Additional Information 10,000 6,77,000

10,000

8,000 8,17,000

a) Depreciation of Rs.10,000 and Rs.20,000 has been changed on plant and building during the current year. b) An interim dividend of Rs.20,000 has been paid during the current year. c) Rs.35,000 was paid during the current year for income tax. See Answer on www.smuSolutions.com Q3. Calculate the cost of raw materials purchased from the following data:

Opening stock of raw materials Rs.10,000 Closing stock of raw materials Rs.15,000 Expenses on purchases Rs.5,000 Direct wages Rs.50, 000 Prime costs Rs.1, 00,000 Hint: Cost of Raw Materials purchased is Rs.50,000 See Answer on www.smuSolutions.com Q4. Distinguish between absorption costing and marginal costing See Answer on www.smuSolutions.com Q5. The Anchor Company Ltd. produces most of its electrical parts in its own plant. The company is at present considering the feasibility of buying a part from an outside supplier for Rs.4.50 per part. If this is done, monthly costs would increase by Rs.1,000. The part under consideration is manufactured in department 1 along with numerous other parts. On account of discontinuing the production of this part, department 1 would have somewhat reduced operations. The average monthly usage production of this part is 20,000 units. The costs of producing this part on per unit basis are as follows. Material Labour (half-hour) Fixed overheads Total costs Rs. 1.80 2.40 0.80 5.00

Should the company produce this part or should it buy from an outside supplier? Hint: Differential costs Favouring making of the parts 7,000 per month 0.35 er unit

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Q6. Explain the essential features of budgetary control. See Answer on www.smuSolutions.com