Reg.No.

QUESTION PAPER CODE: 3B1Z101

M.B.A Degree Semester End Examinations, July/August 2021
First Semester

19BA6101T- Accounting for Management

Department of Management Sciences
(Regulations 2019)
Time: Three hours Maximum : 100 Marks
Answer ALL Questions
PART-A (10 x 2 = 20 marks)

1. What do you understand by GAAP? CO1 C1

2. State the importance of ‘Trial Balance’ in the accounting process. CO1 C1
3. Define the joint stock company. CO2 C1
4. What is allotment of shares? CO2 C1
5. What is ‘Accounting Standard - 3’? CO3 C1
6. List out the three components of a Cash Flow Statement. CO3 C1
7. Calculate the Break Even Point from the following: CO4 C2
Sales 1000 units at Rs. 10 each – Rs. 10,0000
Fixed cost – Rs. 6000, Variable cost – Rs. 8 per unit
8. What is meant by Zero Base Budgeting? CO4 C1
9. Define the term Codification. CO5 C1
10. What are the limitations of computerized accounting? CO6 C1
PART-B (5 x 13 = 65 marks)

11. (a) Explain the various accounting concepts and conventions. (13) CO1 C2
(OR)
(b) From the following ledger balance of Allan Enterprises Ltd prepare a (13) CO1 C3
trading, Profit and Loss and Balance Sheet as on 31st December
2019
Opening Stock 48000 Plant and 10000
Machinery
Drawings 6000 Cash 1000
Sales 125000 Building 2500
Sundry Debtors 18000 Bank loan 2000
Capital 25000 Reserve for bad 2500
debts
Wages 14000 Returns outwards 750
Salaries 2800 Bills payable 2500
Carriage on purchase 2500 Sundry Creditors 11650
Rent 3500
Purchases 60000
Discount on purchase 2000
Interest on bank loan 100
Bills Receivable 3000
Adjustments
1. Rent Rs.100 per month is not paid for 2 months
2. Wages and salaries unpaid to the extent of Rs.750 and Rs.225
respectively.
 3. Depreciate plant by 10%
4. Closing stock was valued at Rs.17500
5. Write off Rs.1500 as bad debts and maintain a reserve at 5%
on Debtors.

12. (a) A Company issued 10,000 equity shares of Rs.10 each at premium of (13) CO2 C5
Rs.3 per share payable as follows: On application Rs.4 per share On
allotment Rs.5 per share (including premium) On first and final call
Rs.4 per share Subscriptions were received for 13,000 shares. The
excess money was refunded and the allotment money was received
in full. The first and final call was made in due course and the
amount due was received with the exception of 100 shares. These
shares were forfeited and subsequently reissued as fully paid for
Rs.8 per share. Pass Journal entries recording the above transactions
(OR)
(b) Write a note on Employee Stock Option and explain its advantages. (13) CO2 C2

13. (a) From the following balance sheets of Tina Ltd, Prepare fund flow (13) CO3 C3
statement.
BALANCE SHEET OF TINA LTD.
Liabilities 2018 2019 Assets 2018 2019
Share capital 200000 250000 Land & 200000 190000
Buildings
General Reserve 50000 60000 Plant 150000 174000
P&L A/C 30500 30600 Stock 100000 74000
Bank Loan 70000 - Debtors 80000 64200
Creditors 150000 135200 Cash 500 600
Provision for 30000 35000 Bank - 8000
Tax

530500 510800 530500 510800

Additional information:
1. Depreciation was written off on plant Rs.14000 in 2019
2. Dividend of Rs.20000 was paid during 2019
3. Income tax provision made during the year was Rs.25000
(OR)
(b) The following are the comparative Balance sheets of RMV Ltd. as (13) CO3 C3
st
on 31 December 2017 and 2018.
Liabilities 2017 2018 Assets 2017 2018
(Rs.) (Rs.) (Rs.) (Rs.)
Share Capital Land 10,00,000 15,00,000
(Shares of 35,00,000 37,00,000
Rs.10 each) Stock 24,60,000 21,35,000
Profit & Loss 5,04,000 5,28,000
A/C. Goodwill 5,00,000 2,50,000
9% Debentures 5,16,000 5,92,000
Debtors 7,10,000 8,45,000
Creditors 6,00,000 3,00,000
Cash 4,50,000 3,90,000
51,20,000 51,20,000 51,20,000 51,20,000
Other particulars provided to you are:
 (i) Dividends declared and paid during the year Rs.1, 75,000.
(ii) Land was revalued during the year at Rs.1, 50, 000 and profit on revaluation was
transferred to P & L a/c.
You are required to prepare a Cash Flow Statement for the year ended 31-12-2018.

14. (a) Define Cost accounting. Classify the costs into different categories (13) CO4 C4
based on various purposes.
(OR)
(b) The following figures of sales and profit for 2 periods are available (13) CO4 C5
in respect of concern.
Sales Profit
Period- I 10000 (500)
Period- II 14000 1500
You are required to find out
a) Breakeven point
b) Profit at an estimated sales of Rs.12000
c) Sales required to earn a profit of Rs.5000

15. (a) Discuss the need and advantages of Computerized accounting (13) CO5 C4
system.
(OR)
(b) Explain any one accounting software in detail with its merits and (13) CO5 C5
demerits.
PART-C (1 x 15 = 15 marks)

16. (a) From the following information, prepare (15) CO3 C3

Cash from Operations
Cash Flow Statement
Statement of changes in working capital
Fund Flow Statement
Balance Sheet
Assets: 2018 2019
Furniture & Fittings 1,17,000 1,30,000
Plant 1,54,000 80,000
Long-Term Investments 3,00,000 2,60,000
Stock 8,29,000 8,00,000
Trade Debtors 90,000 1,09,000
Cash at Bank 1,43,000 1,40,000
Preliminary Expenses 10,000 15,000
Total 16,43,000 15,34,000
Capital & Liabilities: 2018 2019
Equity Share Capital 90,000 6,00,000
Preference Share Capital - 2,00,000
Profit & Loss Account 1,10,000 75,000
Debentures 2,50,000 3,00,000
Bank Loan 75,000 1,00,000
Bills Payable 45,000 40,000
Trade Creditors 1,50,000 1,15,000
Outstanding Expenses 18,000 19,000
Provision for Taxation 95,000 85,000
Total 16,43,000 15,34,000