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P144/MCA035/EE/202001

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Time : 3 Hours Marks : 80

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Instructions :
1. All Questions are Compulsory.

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2. Each Sub-question carry 5 marks.
3. Each Sub-question should be answered between 75 to 100 words. Write every questions

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answer on separate page.

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4. Question paper of 80 Marks, it will be converted in to your programme structure marks.

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1. Solve any four sub-questions.
a) What is Double Entry Concept? Explain with suitable examples. 5

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b) Classify the accounts and write down the basic rules of the accounts. 5

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c) Explain the need for accounting standards. 5
d) Prepare double entries for the following items. 5
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i. Started business with Rs.2000 as capital.
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ii. Purchase furniture for Rs.200 Cash.

iii. Purchase goods for Rs. 300 on credit.
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e) Aniket's transactions for the month of April are given below journalise them. 5
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2009 Particulars Rs.

April 1 Aniket started business with cash 2000
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April 2 Furniture purchased for cash 1000

April 3 Goods sold on credit 500
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April 4 Paid rent 300

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April 5 Paid Salary 100

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2. Solve any four sub-questions.

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a) Calculate current ratio, liquidity ratio, debt-equity ratio proprietary ratio and solvency
ratio for the given statement. 5
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Liabilities Rs. Assets Rs.

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Paid up Capital 1,50,000 Fixed Assets less Dep. 2,18, 750

Reserves and Surplus 85,000 Stock 48,650
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Debentures 1,20,000 Trade debtors 10,520

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Bills payable 6,500 Cash at bank 25,301

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3,61,500 3,03,221
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b) Compute the stock turnover ratio with help of the following figures. 5

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Rs. Rs.
To opening stock 14,560 By sales 78,000

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To purchases 40,000 By closing stock 15,400

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To carriage inwards 900

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To gross profit 38,000

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93,460 93,400
c) The capital of Surya Ltd is as follows: 5

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9% 30000 preference shares of Rs.10 each 3,00,000

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80000 equity shares of Rs.10 each 8,00,000

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11,00,000

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i. PAT @ 60% Rs. 20,000.
ii. Depreciation Rs. 60,000.
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iii. Equity dividend paid 20%.
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iv. Market price of equity share Rs.40.

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Calculate
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a) Dividend yield on equity

b) Earnings per share,
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c) Dividend payout ratio.

d) The following particulars are given for the year. 5
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(Rs. In Lakhs)
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Sales 121
Earnings before interest and Tax 30
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Net Profit after Tax 20

You are required to calculated
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i) Profitability on funds employed

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ii) Average collection period

iii) Return on equity
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e) A Euronics enterprise has profit before tax of Rs.40 lakhs. If the company's time
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interest covered ratio is 5? What is the total interest charge? 5

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3. Solve any four sub-questions.

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a) Prepare Trading account from the following details. 5

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Opening stock Rs. 25,000; Purchases Rs. 85,000; Carriage Inward Rs.11,500; Closing
Stock Rs.14,500; Carriage Outward Rs.2,500; Purchase Return Rs.500; Sales

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Rs.1,35,000.

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b) Explain the difference between Trading Account and Profit and Loss Account. 5

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c) Write short notes on Final Accounts and Adjustment Entries. 5
d) X Y Z Ltd is implementing a project with initial capital of Rs. 7,600. Its cash flow is

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as follows 5

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Year Rs.
1 6,000

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2 2,000

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3 1,000 EC
4 5,000
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The expected rate of return on capital investment is 12% p.a. calculate the discounted
payback period of the project.
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e) Explain the concept of working capital detail. 5

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4. Solve any four sub-questions.

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a) Find out the future value of Rs. 1000. Compounded annually for 10 years at an interest
rate of 10%. 5
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b) What are the major principles of Financial Management? 5

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c) What is the formula of EOQ? 5

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d) Write short notes on 5

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i) Lock box system and

ii) Zero balance account.
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e) A firm is wondering whether to sell goods to a customer on credit or not. The revenue
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from sales will be Rs. 10,000 and the cost of sale will be Rs. 8,000. What should be
the minimum probability that the customer will pay, in order to sell profitably? 5
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