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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 Email : mba8182@gmail.com Ph : 09873669404 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 [10 Marks] positionattheend. Q.2a. Listtheaccountingstandards issuedbyICAI. [5 Marks] 2b. Write shortnotes ofIFRS. [5 Marks] Q.3 Prepare aThree-column CashBook ofM/s Thuglak& Co.from [10 Marks] Thefollowingparticulars: 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 [10 Marks] Card and detailonit. Q.5 FromthefollowingdataofJagdishCompanyprepare (a)a statementof source andusesofworkingcapital(funds) (b)a schedule ofchanges inworking capital Assets Cash Short-terminvestment Debtors Stock LongtermInvestment Machinery Building Land Total Liabilities and Equity Accumulateddepreciation Creditors Bills Payable Securedloans 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

Spring 2011(Feb-July) Cost ofgoodssold Gross Profit Less Operatingexpenses: Depreciation ±machinery Depreciation ±building Otherexpenses Net profitfromoperation 1,34,600 1,05,200 20,000 32,000 40,000

92,000 13,200 4,800 18,000 2,000 16,000

Gain on sale on long-terminvestment Total Loss onsale ofmachinery Net Profit

Adjustments: 1) Machineryworth Rs.70000was purchasedandworthRs.10000was sold duringtheyear [Accumulated depreciation onmachineryis Rs.18000 after adjusting depreciationonmachinerysold].Proceeds fromthesale of machinerywere Rs.6000 [ 10 Marks] 2) Dividends paid duringthe yearRs.11600 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 Cost ofGoodsSold Debtors Inventories Cash Othercurrentassets Currentliabilities 69,000 57,000 7,200 11,400 1,500 4,000 16,000 43,000 32,500 3,000 5,500 800 2,700 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. Q.2 [10 Marks]

Explain different methods ofcosting.Youranswer should bestudded with

examples (preferablyfirmname andproduct) foreach methodofcosting. [10 Marks] Q.3 State theimportanceofdifferentiatingbetween the fixedcostsandvariable [10 Marks]

costsin managerialdecision. Q.4 2009 Name of the account Sundrydebtors Baddebts Additional Information Dr 2,05,000 3,000 Cr

Followingare theextracts fromthetrialbalance ofafirmas at31stMarch

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]