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MCA-I Semester Supplementary Examinations, July/Aug 2008. ACCOUNTING AND FINANCIAL MANAGEMENT Time: 3hours Answer any FIVE questions All questions carry equal marks --1. Explain documents used for data collection, processing of different files and outputs obtained through computerised accounting system. Explain various accounting concepts. Differentiate between single entry book-keeping and double entry book-keeping. Explain the meaning and scope of financial management. Compare and contrast profit maximisation and wealth maximisation. From the following particulars prepare the Trading Account and Profit and Loss A/C for the year ended 31st Dec, 03 and the Balance sheet as on that date: Max. Marks: 60
2. 3. 4.
Code No: OR-15/MCA
Trial Balance as on 31.12.03 Particulars Capital A/C Sales A/C Creditors A/C Bills Payable A/C Returns outward A/C Interest A/C Provision for doubtful debts A/C Purchases A/C Returns inward A/C Carriage inward A/C Carriage outward A/C Rent A/C Stock A/C Debtors A/C Salary A/C Wages A/C Printing & Stationary Bills receivable A/C Plant & Machinery A/C Furniture A/C Advertisement A/C Bad debts A/C Investments A/C Cash at Bank A/C Cash in hand A/C i) ii) iii) iv) v) Debits (Rs) 75,000 1,000 500 700 2,500 15,000 40,000 11,500 10,000 300 11,000 50,000 10,000 500 500 20,000 29,300 100 2,77,900 Credits (Rs) 50,000 175,000 25,000 20,000 5,200 500 2,200 -
Closing stock valued at Rs 15000 is to be taken into account Plant and machinery is to be depreciated at 10% and furniture at 15% A further bad debt of Rs 500 is to be written off Provision for doubtful debts is to be maintained at 4% on sundry debtors. Interest earned but not received within accounting year Rs. 500. Contd…3
Code No: OR-15/MCA 5.
The following are the summarized Balance sheet of V. Ltd. as at 31st Dec previous year and current year. Previous year 2,00,000 39,690 50,000 40,000 59,510 33,780 39,500 462480 Current year 2,60,000 41,220 50,000 50,000 11,525 41,135 453880 Assets Goodwill Machinery Buildings Stock Sundry debtors Cash Previous year 1,12,950 1,48,500 1,11,040 87,490 2,500 462480 Current year 20,000 1,16,200 1,44,250 97,370 73,360 2,700 453880
Liabilities Share capital Profit & Loss A/C Reserves Tax Provision Bank over draft Bills payable Sundry creditors
The following additional information is obtained from the general ledger: a) During the current year an interium dividend of M 26 000 was paid. b) The assets of another company were purchased for Rs 60,000 payable in fully paid shares of V. Ltd. These assets include stock Rs. 22,000 and machinery 18000. In addition sundry purchases of machinery amounted to Rs 5600. c) Income-Tax paid during the year amounted to Rs 25 000. Prepare statement of changes in working capital, Funds Flow Statement and cash flow statement. 6. From the following details prepare the Balance sheet of the firm concerned: Stock velocity = 6, capital turnover Ratio = 2 Fixed assets turnover Ratio = 4, Gross Profit = 20%, Debt Collection Period = 2 months, Creditors payment period = 73 days. The gross profit was Rs 60,000. Closing stock Rs. 5000 in excess of the opening stock.
Contd…4 Code No: OR-15/MCA ::4::
7. The fixed cost of a firm is Rs 200 000 per annum. The variable cost per unit is Rs 7/- and selling price is Rs 12. Find out the break-even point in units and value. What will be the new BEP if selling price increases by 20%. Verify your results in both the cases. Prepare Break-Even chart. 8. Ultra Modern Cassette Ltd., had budgeted the following sales for Feb, 2001 Casette A Casette B Casette C 1100 units @ Rs 50/- per unit 950 units @ Rs 100/- per unit 1250 units @ Rs 80/- per unit
As against this, the actual sales were: Casette A Casette B Casette C 1300 units @ Rs 55/- per unit 1000 units @ Rs 95/- per unit 1200 units @ Rs 78/- per unit
The cost per unit of Casette A, B and C was Rs. 45, Rs. 85 and Rs.70 respectively. Compute sales variances by value method and verify your results. What references can be drawn from your calculations. *****