Financial Management &Business Accounting XEV (H-II) – BBM (3)

2014

Time : 3 Hours

Candidates are required to give their answers

In their own words as far as practicable

The questions are of equal value

Answer any five question selecting

At least two from each group

Group A

1. What is financial management? Discuss the objective and goals of financial management.

2. What do you mean by Financial Planning? Discuss the basic elements of Financial
Planning.

3. Define share capital. Explain the classification of share capital in details.

4. What is ratio analysis? Discuss the object and importance of ratio analysis.

5. From the following information, prepare a cash flow statement:

Rs.

Opening Cash Balance 15,000

Closing Cash Balance 17,000

Decrease in stock 8,000

Increase in Bills payable 12,000

Sale of Fixed Assets 30,000

Repayment of long term loan 50,000

Net profit for the year 2,000

 Group B

6. Define accounting. Discuss the nature and importance of accounting.

7. What is receipt and payment account? Differentiate it from income and expenditure
account.

8. What do you mean by Depreciation? Explain the different methods of charging

depreciation.

9. Hari, Ravi and Kavi were partners in a firm sharing profit in the ratio 3:2:1. They admitted
Guru As a new partner for 1/7th the sharing in the profits. The new profit sharing ratio will
be 2:2:2:1Respectively. Guru brought Rs. 3,00,000 for his capital and Rs. 45,000 for his 1/7th
share of Goodwill. Showing your working clearly, pass necessary journal entries in the
book of the firm For the above mentioned transactions.

10. Prepare trading and profit & loss A/c for the year ending 31st March 2013 and a Balance
sheet as On that date after taking into account the following adjustments :

i) Closing stock Rs. 9800

ii) A plant which stock in the books at Rs. 6,000 on 1st April 2012 was sold for Rs.2,000
in exchange for a new machine costing Rs. 5,550. The net invoice of Rs. 3,500 was
passed through the purchase book.

iii) Bills receivable include a dishonored Bill of Rs. 450.

iv) Sundry debtors include an item of Rs. 350 for the goods supplied to the proprietor.

v) Write off Building, Machinery and Patents by 10%

vi) Make a provision for doubtful debts at 5%.