MODEL PAPER

End Semester (I Semester) Examination, March 2021

Course: MBA Full Marks: 70

Subject: FRSA Time: 3 hrs

Subject Code: 11.509

UNIT-I
Questions for Five Marks
Q1. What are the advantages of Journal?
Q2. What is the objective of financial accounting?
Q3. Explain the importance of Final accounts.
Questions for Ten Marks
Q4. Write down the Journal entries for the following transactions:
a) Bought goods from Prasad
b) Sold to Sharma
c) Purchased machinery for cash
d) Rent paid
e ) Interest received
f) Depreciation on machinery
g) Paid cash for stationery
h) Took goods for personal use
i) Commenced business with cash
j) Paid to Prasad by cheque
Q5. Classify the following under different types of accounts:
i) Stock
ii) Loan
iii) Fixtures
iv)Cash
v) Drawings
vi)Salaries
vii) Current account of a partner
viii) Insurance
ix) Banks
x) Machinery
Q6. Name 4 direct and 6 indirect expenses.
Q7. What do you mean by Ledger posting ? Explain its importance in accounting.
Q8. Define the terms:
i) Current assets ii) Current liabilities iii) Working capital
iv)Prepaid expenses v) Outstanding salaries
Q9. Write the short notes:
a. Compensating error
b. Error of commission
Questions for Twenty Marks
Q10. Record the following transactions in journal. Post them into ledger account and prepare a
trial balance:
May 2: Sold goods to Govind Cash Rs. 10,000 and credit Rs 2,000
May 3: Sold to Sharma Rs 11,000
May 5: Bought from Ram Lal Rs 1200
May 8 : Sold to Zahir Rs 500
May 15: Received from Govind Rs.1500
May 18: Received from Sharma : Rs. 2,000
Allowed him discount : Rs. 50
May 20 : Accepted Ram Lal draft at three months Rs.1500
May 21: Sold goods to Sharma : Rs.800
May 22 : Paid rent Rs. 150
May 24: Sold to Zahir Rs. 1000
May 30: Paid salaries in cash Rs.300
Q11. The trial balance of Sharma Ltd on 31st March, 2003 revealed the following balances:
Debit balances: Credit balance:
Plant & Machinery Rs 90,000 Capital account : 1,10,000
Purchases 58,000 Sales : 1,27,000
Sales return 1,000 Purchase return: 1275
Opening stock 40,000 Discount received: 800
Discount allowed 350 Sundry creditors : 25000
Bank charges 75
Sundry debtors 45,000
Salaries 6,800
Wages 10,000
Freight inward 750
Freight outward 1200
Rent, rates and taxes 2000
Advertisement 2000
Cash at bank 6900

UNIT II

Questions for Five Marks

Q12. Explain the meaning of depreciation.
Q13. What do you mean by amortization?
Q14. Define deferred revenue expenditure.
Q15. What is revenue receipt ?
Q16. State briefly the need for providing depreciation

Questions for Ten Marks

Q17. What are the causes of depreciation?
Q18. Write short note on:
a. Obsolescence b. Depletion

Q19. A Boiler was purchased from abroad for Rs.10,000. Shipping and forwarding charges
amounted to Rs.2,000, import duty Rs.7000 and expenses of installation amounted to Rs.
1,000.Calculate depreciation for the first three years separately for each year @ 10 % on
diminishing balance method.
Questions for Twenty Marks
Q20. Discuss in detail the straight line method and written down value method of depreciation.
Distinguish between the two and also give situations, where they are useful.
Q21. Distinguish between Capital expenditure & Revenue expenditure with examples.
Q22. Why there is a need for charging depreciation and what are the effects of depreciation on
profit & loss account and balance sheet.

UNIT III

Questions for Five Marks

Q23. What do you mean by management accounting?
Q24. Explain the importance of management accounting.

Q25. What is the meaning of term budgetory control?

Q26.What are the limitations of management accounting?

Questions for Ten Marks

Q27. Difference between cash flow statement and fund flow statement
Q28. What do you mean by cash flow statement? What are its important features?

Questions for Twenty Marks

Q29. What are the objectives of budgetary control. What are the essentials of budgeting.
Q30. Define the following term:
a) Operating activities
b) Short term & long term budget
c) Investing activities
d)fixed and flexible budget
e) Zero based budgeting
Q31. From the following cash flow of Pramod ltd Prepare Cash flow Statement.

LIABILITIES 2011 2012 ASSETS 2011 2012

Share Capital 2,00,000 2,00,000 Fixed assets 2,70,000 2,50,000

Depreciation reserve 40,000 62,000 Debtors 96,000 83,000

Profit & Loss account

45,000 72,000 Stock 60,000 74,000

General Reserve

60,000 40,000 Bank Balance 11,000 51,000

Debentures

60,000 50,000 Expense on issue of 3,000 2,000

debt
Creditors

35,000 36,000

4,40,000 4,60,000 4,40,000 4,60,000

UNIT IV

Questions for Five Marks

Q32. What are the the elements of total cost?

Q33. What do you mean by overheads?
Q34. What is job costing?
Questions for Ten Marks
Q35. What are the methods of costing?
Q36. Distinguish between cost accounting and financial accounting.
Q37. What do you mean by standard costing. What are its process?
Q38. A manufacturing concern which has adopted standard costing furnishes the following
information:
Standard: Material for 70 kg finished products 100kg
Price of material Re 1 per kg

Actual: Output 2,10,000kg

Material used 2,80,000kg
Cost of materials Rs. 2,52,000

Calculate Material usage variance , Material price variance and Material cost variance

Questions for Twenty Marks

Q39. What is marginal costing and what are its application in managerial decision making?
Q40. A firm purchased a plant to manufacture a new product, the cost data for which is given
below:
Estimated Actual sales 2400 units
Estimated costs:
Material 4.00 per unit
Direct labour 0.60per unit
Overheads 24,000 per year
Administrative expenses 28,800 per year
Selling expenses 15% of sales
Calculate the selling price if profit per unit is 1.02

Prepared By: SONAL BHARTI Reviewed By:

Disclaimer: - This is a Model Paper. The Question in End term examination will differ from
the Model Paper. This Model paper is meant for practice only.