Seat No:______________ Enrollment No:______________

PARUL UNIVERSITY
FACULTY OF MANAGEMENT STUDIES
MBA Winter 2021 Supplementary Examination
Semester:1 Date: 14/10/2021
Subject Code: 06200104 Time: (2hr:30min)
Subject Name: Accounting for Managers Total Marks: 60
Instructions
1. All questions are compulsory.
2. Figures to the right indicate full marks.
3. Make suitable assumptions wherever necessary.
4. Start new question on new page.

Q.1 Do as Directed.
A).Multiple choice type questions/Fill in the blanks. (Each of 1 mark) (05)

1. Outstanding expense is a

A Liability C Expense
B Income D Asset
2. According to which concept the owners are considered to be different from the business
A Going Concern Concept C Accounting Period Concept
B Money Measurement Concept D Business Entity Concept

3. The ratio which determines the profitability from the shareholders point of view is
A Return on Investment C Return on Shareholders’ funds
B Gross Profit Ratio D Operating Profit Ratio
4. In Fund Flow Statement, outflow of fund on account of operations is
A Source of Cash C Application of Fund
B Application of Cash D Source of Funds
5. Profits are included in accounts only if realized and losses even if estimated must be provided
for. This statement is based on
A Accrual Concept C Materiality Concept
B Consistency Convention D Conservatism Concept
B).Define the following terms: (Give answer in not more than five lines) (Each of 1 mark) (05)
1.Accrual
2. Bad debts
3.Capital Employed
4 Capital Work in Progress
5 Cash Equivalents
C).Direct questions. (Give answer in not more than five lines) (Each of 1 mark) (05)
1. What is Trend Analysis?
2 What is Ratio Analysis?
3 What is Contingent Liability?
4 What is Cost Concept in Accounting?
.
5 What is Fund Flow Statement?
Q.2 Answer the following questions.

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 Transactions of Mahesh for April 2019 are given below. Journalize them (write narration)
1. April 1, 2019: Mahesh started business with Rs.10,00,000 in cash
2. April 2, 2019: Deposited Rs.3, 00,000 in bank.
3 April 7, 2019: Purchased Goods: For cash Rs.600000 and For Credit: Rs.12, 00,000 from
Rahul. Rahul offered 10% trade discount.
4 April 9, 2019: Sold Goods: For cash Rs.7, 00,000 and For Credit: Rs.15, 00,000 to Mohan.
A). Trade discount offered to Mohan 15% (07)
5 April 17, 2019: Received 50% of Bill raised to Mohan by cheque after allowing him 5% cash
discount
6 April 25, 2019: Paid 50% of Bill of Rahul by cheque after deducting 5% cash discount.
7 April 30, 2019: Office Rent paid by cheque: Rs.20000. Cash withdrawn for personal use
by Proprietor Mahesh: Rs.25000.
The following are the balances as on 31st March 2019 extracted from the books Mr.ABC.

Amount Amount Amount

Rs Rs Rs
Plant & Machinery 19550 Sundry Debtors 120000 Sales 215000
Furniture &Fittings 10250 Sundry Creditors 47500 Advertisement 3350
expenses
Bank Overdraft 80000 Bad debts 1100 Printing & 1250
Stationery
Capital Account 65000 Bad debts 450 Cash in Hand 1450
recovered
Drawings 8000 Salaries 22250 Cash at Bank 3125
B). (08)
Purchases 160000 Salaries Payable 2450 Office expenses 10160
Opening Stock 32250 Prepaid Rent 300 Interest paid on 3000
loan
Wages 12165 Rent 4300
Provision for 3200 Carriage inward 1125
doubtful debts
Provision for 1375 Carriage outward 1350
Discount on
Debtors

Prepare Trial Balance of Mr.ABC as on 31st March 2019

Q.3 Answer the following questions. (15)

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 From the following Trial Balance drawn from books of Mr. Krishna as on 31 st March 2018,
prepare Trading and Profit & Loss Account for the year ended on 31st March 2018 and Balance
Sheet as on 31st March 2018 after considering adjustments given below Trial Balance.
Particulars Dr. Amount (Rs) Cr. Amount(Rs)
Sundry Creditors 19000
Building 15000
Income-Tax 1025
Loose Tools 1000
Cash at Bank 16200
Sundry Expenses 1900
Bank Interest 75
Bad Debts 190
Loan from Ram 2500
Sundry Debtors 9500
Investments 6500
Bad Debt Reserve 1600
Rent and Rates 850
Furniture 3000
Purchases 157000
Salaries 2000
Carriage Inwards 1120
Sales 185000
Motor Van 12500
Cash in Hand 335
Stock(1 April 2017) 27350
Capital 39390
Discount Allowed 630
Discount Received 535
Drawings 2000
Bills Payable 10000
Total 258100 258100
Adjustments:
1. Write off further Rs.300 as bad debt out of Sundry Debtors and create a Reserve for Bad Debts
@ 20% on Debtors.
2. Dividend accrued and due on investments Rs.135.Rates paid in advance Rs.100 and Salary
outstanding Rs.450.
3. On 31st March 2018, Stock was valued at Rs.25000 and Loose Tools were valued at Rs.800.
4. Write off 5% depreciation on Building and 20% on Motor Van.
5. Provide for interest @12% per annum on loan taken from Ram on 1 June 2017.
6. Income Tax paid is to be treated as Drawings.
Q.4 Attempt any two questions. (Each of 7.5 mark) (15)
A Write Short note on As-6: Depreciation Accounting
B Write Short note on: Merits and Limitations of Cash Flow Statement
A Company purchased raw materials during the month of March 2007 as stated below:
March 2, 1600 units @ Rs.60 per unit.
8, 2400 units @ Rs.55 per unit.
11, 5000 units @Rs.57 per unit.
19, 6000 units @ Rs.54 per unit.
23, 3000 units @ Rs. 58 per unit.
C 30, 2000 units @ Rs.63 per unit.
While preparing final accounts on 31st March 2007 the company had 2600 units of raw
materials in its godown.
You are required to calculate the values of closing stock of raw materials according to:
(a).First-in-First out Method.
(b). Last-in-First out Method.
( c). Weighted Average Method

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 Calculate Debtors Turnover Ratio and Average Collection Period in terms of months and days
from the following information:
1. Total Sales: Rs.10, 00,000. Cash sales Rs.5, 20,000.
D 2. Debtors: Beginning of the year Rs 60000 and at the end of the year Rs.100000.
3. Bills Receivable: Beginning of the year Rs.30000 and at the end of the year Rs.50000.
4. Assume that year is comprised of 365 days.

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