IBS CU SRTOT PGPM PROGRAM CLASS OF 2019 END SEMESTER EXAMINATION MUMBAI Semester Accounting For Managers couse | SLACSO1 | To be filled by the candidate ENROLLMENT NO. CANDIDATE CAN RETAIN THE QUESTION BOOKLET AFTER THE EXAMINATION IS OVER. ‘This question booklet comprises of Part A, Part B & Part C. Part A i. Part A consists of 6 short note questions. The time allotted to complete Part Ais 30 minutes. Pare. ji. Part B consists of 4-6 questions including testing your understanding of basic concepts, conceptual understanding, analytical abil and situational analysis but not limited to this order. li, Time allotted to complete Part B is 90 minutes. Parc! Iv: Part C consists of 1-2 case lets to test analytical ability situational analysis and application of concepts. Time alloted to complete Part C is 60 minutes. Total duration of the examination is 3 hours. INSTRUCTIONS TO CANDIDATES ‘Answer Part A Part B & Part C in SINGLE ANSWER BOOKLET. ‘Write your enrollment number on the first page of the answer book at the space provided only. All rough work may be done on any blank page in the answer book Pencil should not be used for answering, The unused portion of the answer book must be boldly crossed prior to submitting Attempt all questions Marks are indicated against each questionTotal Qi Q2 Q3 Q4 Qs Q6 PART- A Short note questions on basic concepts and application of concepts I marks: 30 Maximum Time: 30 Minutes ‘What do you understand from Principle of Prudence? Explain the different Bases of Accounting. State the internal uses of Cash flow Statements ‘What are long term Borrowings? Give Examples? What do you mean by Capital Gearing ratio? What are Depreciable Assets? PART- B (3 Marks) (5 Marks) (5 Marks) (5 Marks) (5 Marks) (5 Marks) Basic concepts, conceptual understanding, Analytical ability and situational analysis Tot Q7 Qs tal Marks: 40 Maximum Time: 90 Minutes Vaastu Builders purchased a concrete mixer worth s. 3,50,000 on 1* March 2012. On 1* January, 2014 the same was badly damaged in an accident and was scrapped for Rs.2, 20,000. On the same day another Concrete mixer was purchased for Rs. 3,75,000.The company provides Depreciation on reducing Balance Method @ 15% p.a. Prepare Concrete Mixer for 2012 -13, 2013-14, 2014-15 assuming the financial year ends on 31% March, every year. Working Notes are part of your answer. (10 Marks) ‘Negi Ltd has drawn the following Profit & Loss Account for the year ended 31% March, 2017. Profit & Loss A/e for the year ended 31% March, 2017. (10 Marks) _ Particulars ‘Amount(Rs) Particulars ‘Amount (Rs) To Opening Stock 26,000.00 By Sales | 160,000.00 To Purchases 80,000.00 By Closing Stock 38,000.00 ‘To Wages 24,000.00 To Manufacturing Expenses 16,000.00, ‘To GROSS PROFIT C/Fd. To Selling & Distribution Exps 52,000.00 198,000.00 4,000.00 By GROSS PROFIT B/Fd. 198,000.00] 52,000.00 To Administration Expenses 22,800.00 By Compensation for Acquisition of Land 4,800.00 To General ExpensesCompute the Following Ratios:- i. Profit Ratio ii. Operating Profit Ratio iii, Stock Turnover Ratio iv. Net Profit Ratio Gross Y. Cost of Goods Sold Ratio Q.9 Using the information given below ascertain the value of Stock as on 31.12.2012.The stock on hand on 30.09.2012 was 2,700 units worth Rs.2, 75,400. (10 Marks) Date Purchases: Sales Units | Rate | Units Rate 01.10.2012 27,000. | 107 15.10.2012 28,000 i10 31.10.2012 36,000 | 108 | 33,000 112 15.11.2012 36,000 | 110 | 32,000 115 30.11.2012 35,000 | 111 15.12.2012 36,000 116 30.12.2012 40,000 [112 37,700 121 The company uses LIFO Method of stock valuation, \ Q.10 Following is the trial balance from the books of Dharmhita Private Ltd. as on 31-3-2017 (10 Marks) Debit Balances [__ Amount Credit Balances Amount Land and building 400000 | Share capital : (at cost ) 520000 | 50,000 equity share of Rs 10 500000 Plant and machinery 100000 | each 400000 (at cost ) 260000 | 8 % debenture (1-4-2016) 70000 Motor car ( at cost ) 72000 | Provision for tax Goodwill (at cost ) 18000 | (accounting year 2015-16) 90000 Salaries and wages 16000 | Sundry creditors 40000 Rent and taxes 17000 | Bills payable 180000 Travelling Expenses 8000 | General reserve 20000 Printing and stationary 16500 | Securities premium 15000 Motor car expenses 94000 | Capital reserve 55000 Repairs (machinery ) 145000 | Profit and loss A/c Stock 8000 | (on 1-4-16) Debtors 30000 | Provision for depreciation Cash 150000 | (on 1-4-16) 40000 Bills receivable trade 16000 | i. Land and buildings 130000 10 % investment ii, Plant and machinery 30000 Interest on debenture iii, Motor car 410000 Advance tax Gross profit 7500 For-2015-16 (F.Y) 72000 | Interest on investment 35000 For 2016-17 (F.Y) | 60000 | Sales of motor car [20,02,500 | 20,02,500Adjustments: a, Depreciation is to be provided on written down value at (i) land and building 2.5% P.a. (i) pl and machinery 10 % p.a. and (iii) motor car 20 % p.a. Dividend is proposed for the year @ 10% (Ignore tax on proposed dividend) . Provision for taxation is to be made @ 40 % on the current years profit. Interest on investment is due for 6 months but not received . Interest on debenture for 6 months is accrued and due. esaog Prepare Balance Sheet and supporting notes in accordance to the Provisions of The Companies Bill, 2013 PARTC Case Analysis/case —lets/Applications of concepts ‘Total marks: 30 Maximum Time: 60Minutes Q.11 The summarized balance sheet of Bhadresh Ltd. as on 31.12.05 and 31.12.2006 are as follows: (15 Marks) Liabilities 2005 | 2006 Assets 2005 2006 5 T 1 Share capital 450,00 450,000) Fixed asset 400,00 3,20,004 General Reserve | 3,00,00 3,10,000 Investment 50,001 60,00 P&lale 36,001 68,000 Stock 2A0 0 210,01 Creditors. 1,68,00( 1,34,000 Debtor 2,10,06 4,55,000| Tax provision 75,000, 10,000) Bank 1,49,00( 1,97,001 Mortgage loan + 2,70,000 10,49,001 12,42,00 - 10,49,004 12,42,001 Additional Details: 1. Investment costing Rs. 8,000 were sold for Rs. 8,500 2. Tax provision made during the year was Rs. 9,000 3. During the year part of fixed assets costing Rs 10,000 was sold for Rs 12,000 and the profit ‘was included in P & L A/c. You are required to prepare cash flow statement for 2006. You are required to prepare a Cash Flow Statement Q.12 Sonal Ltd. has authorised capital of Rs 30,00,000 consisting of 3,00,000 Equity shares of Rs. 10 each. The following is the Trial Balance of the company as at 31st March, 2017. (15 Marks)[Debit Balances oo Credit Balances Rs ctroi 2,00,000, Sales 1,56,20,00 Purchases 87,70,000 Creditors 5,00,000 [Directors Remuneration 24,50,000|_ 12% Debentures 10,00,000 Salaries |__20,00,000| General Reserves 5,80,000 Selling Expenses 22,00,000, Provision for Depreciation on : [Rent (10 Months) _ 1,00,000, - Plant 5,00,000 [Prepaid Advertisement 20,000, - Furniture 3,00,000_| Interest on Debentures 1,00,000_ Securities Premium 4,50,000 Plant 25,00,000, Surplus A/c 1,20,000 Furniture - 13,00,000 Provision for Doubtful Debis 30,000 Debtors, 8,00,000| Commission 1,00,000 [Carriage Outward 10,000 Equity Share Capital 20,00,000 [Stock 4,50,000| Provision for Tax 12,50,000 [Bad Debts 50,00 [Coriage Inward 4,50,00 7 jBuildings 10,50,00 2,24,50,0 2,24,50,000 Additional Information: 1. Rent Rs. 20,000 is outstanding. 2. Provide depreciation on plant at 20% per annum and on furniture at 10% per annum on written down value basis. Maintain a provision for doubtful debts at 5% on debtors. . The company proposed a dividend at 10% on paid-up share capital. . Make a provision of 30% for Income tax (including surcharge and cess). Closing stock is Rs 20,00,000. You are required to prepare Statement of Profit and Loss for the year ending 31 st March 2017 in accordance with the Provisions of The Companies act, 2013. [ END OF THE QUESTION PAPER PamaeFORMULAS: 01. Current Ratio: Current Assets / Current Liabilities 02. Quick Ratio: Quick Assets / Quick Liabilities 03. Gross Profit Ratio: Gross Profit / Net Sales X 100 05. Operating Profit Ratio: Cost of Goods Sold + Operating Exp. / Net Sales X 100 06. Stock Turnover Ratio: Cost of goods sold/ Average Stock Average Stock(Op. Stock + Cl. Stock / 2) 07. Stock to Working Capital Ratio: Closing Stock/ Working Capital 08. Debt Equity Ratio: Long Term Debts/ Shareholders Funds 09. Proprietory Ratio: Proprietors Funds / Fixed Assets + Current Assets 10.Capital Gearing Ratio: Pref Share Cap+Debenturetloan /Equity Share Cap+Res 11. Net Profit Ratio: Operating Net Profit. / Net Sales X 100 12. Net Profit Ratio: Net Profit (before tax) / Net Sales X 100 13. Cost of Goods Sold Ratio; Cost of goods sold / sales X 100