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ASSIGNMENT
DRIVE
PROGRAM
SEMESTER
SUBJECT CODE
NAME
BK ID
CREDITS
MARKS

&

SPRING 2015
MBADS / MBAHCSN3 / MBAN2 / PGDBAN2 /
MBAFLEX
I
MB0041- FINANCIAL AND MANAGEMENT
ACCOUNTING
B1624
4
60

Note: Answer all questions. Kindly note that answers for 10 marks
questions should be approximately of 400 words. Each question is
followed by evaluation scheme.
Q1. Analyze the following transaction under traditional approach.
18.1.2011 Received a cheque from a customer, Sanjay at 5 p.m.
Rs.20,000
19.1.2011 Paid Ramu by cheque Rs.1,50,000
20.1.2011 Paid salary Rs. 30,000
20.1.2011 Paid rent by cheque Rs. 8,000
21.1.2011 Goods withdrawn for personal use Rs. 5,000
25.1.2011 Paid an advance to suppliers of goods Rs. 1,00,000
26.1.2011 Received an advance from customers Rs. 3,00,000
31.1.2011 Paid interest on loan Rs. 5,000
31.1.2011 Paid instalment of loan Rs. 25,000
31.1.2011 Interest allowed by bank Rs. 8,000
Analysis of transaction –with accounts involved-nature of accountaffects and debit/credit
Answer :
Date

18.1.20
11

Accounts

Affects

Involved

Nature
of
Account

Cash A/.c
Sanjay A/c.

Real
Personal

Cash is coming in
Sanjay is the giver

Debit/
Credit
Debit
Credit

19.1.20
11

Ramu Ac.
Cash A/.c

Personal
Real

Ramu is the
receiver
Cash is going out

Debit
Credit

Q2. The trial balance of Nilgiris Co Ltd., as taken on 31st December,
2002 did not tally and the difference was carried to suspense account.
The following errors were detected subsequently.
a) Sales book total for November was under cast by Rs. 1200.
b) Purchase of new equipment costing Rs. 9475 has been posted to
Purchases a/c.
c) Discount received Rs.1250 and discount allowed Rs. 850 in
September 2002 have been posted to wrong sides of discount account.
d) A cheque received from Mr. Longford for Rs. 1500 for goods sold to
him on credit earlier, though entered correctly in the cash book has
been posted in his account as Rs. 1050.
e) Stocks worth Rs. 255 taken for use by Mr Dayananda, the Managing
Director, have been entered in sales day book.
f) While carrying forward, the total in Returns Inwards Book has been
taken as Rs. 674 instead of Rs. 647.
g) An amount paid to cashier, Mr. Ramachandra, Rs. 775 as salary for
the month of November has been debited to his personal account as
Rs. 757.
(Pass journal entries and draw up the suspense account, Journal entries
of all the transactions, Suspense account with Conclusion)
Answer :
Serial
No.
a)

b)

Journal Entry
Suspense Account
To Sales

Debit

Credit

1200
1200

No Suspense Account Involved

Q. 3 From the given trial balance draft an Adjusted Trial Balance.

Adjustments:
1. Charge depreciation at 10% on Buildings and Furniture and fittings.
2. Write off further bad debts 1000
3. Taxes and Insurance prepaid 2000
4. Outstanding salaries 5000
5. Commission received in advance1000
Solution;-Ledger accounts Furniture and fittings a/c
Particulars
Rs.
Particulars
Rs.
To bal b/d
500000
By
50000
Depreciation
450000
By bal c/d
Total
500000
Total
500000

Q.4 Compute trend ratios and comment on the financial performance of
Infosys Technologies Ltd. from the following extract of its income
statements of five years. (inRs. Crore)

Preparation of trend analysis
Solution: Infosys Technologies Ltd.
Trend Analysis
Particulars

2010-11

2009-10

200809

200708

200607

Revenue

27,501

22,742

Operating Profit
(PBIDT)

8,968

7,861

21,69
3
7,195

16,692

13,893

5,238

4,391

Q.5 Give the meaning of cash flow analysis and put down the objectives
of cash flow analysis. Explain the preparation of cash flow statement.
Answer : Meaning of cash flow analysis
A cash flow statement is one of the most important financial statements for a
project or business. The statement can be as simple as a one page analysis or
may involve several schedules that feed information into a central statement.
A cash flow statement is a listing of the flows of cash into and out of the business
or project. Think of it as your checking account at the bank. Deposits are the
cash inflow and withdrawals (checks) are the cash outflows. The balance in your
checking account is your net cash flow at a specific point in time.
Q.6 Write the assumptions of marginal costing. Differentiate between
absorption costing and marginal costing.
Answer : The Cost of a product of comprises of materials, labour, and over heads.
On the basis of variability they can be broadly classified as fixed and variable
costs. Fixed costs are those costs which remain constant at all levels of
production within a given period of time. In other words, a cost that does not
change in total but become. progressively smaller per unit when the volume of
production increases is known as fixed cost. it is also called period cost eg. Rent,
Salary, Insurance charges etc. On the other hand variable cost are those cost
which very in accordance with the volume of output. To part it in another way.
variable costs are uniform per unit. but their total fluctuates in direct position to
the total of the related activity or volume

Dear students, get fully solved assignments by
professionals
Send your semester & Specialization name to our mail
id:
“ stuffstudy5@gmail.com ”
Or
Call us at: 095695-71214
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