Master of Business Administration - MBA Semester 1 Subject Code Subject Name 4 Credits (Book ID: B1130) Assignment Set- 1 (60 Marks

) MB0041 Financial and Management Accounting

Note: Each question carries 10 Marks. Answer all the questions.

Q.1 Assure you have just started a Mobile store. You sell mobile sets and currencies of Airtel, Vodaphone, Reliance and BSNL. Take five transactions and prepare a position statement after every transaction. Did you firm earn profit or incurred loss at the end? Make a small comment on your financial position at the end. [10 Marks] Q.2a. List the accounting standards issued by ICAI. [5 Marks] 2b. Write short notes of IFRS. [5 Marks] Q.3 Prepare a Three-column Cash Book of M/s Thuglak & Co. from The following particulars: [10 Marks] 20X1 Jan 1. Cash in hand Rs. 50,000, Bank Overdraft Rs. 20,000

2. Paid into bank Rs. 10,000

3. Bought goods from Hari for Rs, 200 for each

4. Bought goods for Rs. 2,000 paid cheque for them, discount allowed 1%

5. Sold goods to Mohan for each Rs. 1.175

1. Shyam s cheque deposited into bank 8.000 24. Paid tread expenses Rs. 820.Discount allowed 12. 20 being for interest charged. 25 from Hari 11. Bank notified that Shyam s cheque has been returned dishonored and debited the account in respect of charges Rs. 1.000 . Received a cheque from Shyam to whom goods were sold for Rs. Rs. Withdrew fir personal use Rs. 800. Withdrew from the bank Rs.000 at 1% through bank 20. 50 on its repairs 9. Honored our own acceptance by cheque Rs. Received a money order Rs. 10 10.000 22. Purchased an old typewriter for Rs.6. Discounted a B/E for Rs. 10.000 18. 200 . Spent Rs. 5. 2. 12.5% 7. Shyam settled his account by means of a cheque for Rs.

Half-yearly bank charges Rs.500 26.25. 5. 220 31.& Co.000 and paid him by means of a bank draft purchased for Rs. 50 Q.575 28. 1.005 27. Received payment of a loan of Rs. 1.5 From the following data of Jagdish Company prepare (a) a statement of source and uses of working capital (funds) (b) a schedule of changes in working capital Assets 2008 . Withdrew from bank for private expenses Rs. Ramesh who owned us Rs.4 Choose an Indian Company of your choice that has adopted Balance Score Card and detail on it. Paid rent to landlord Mohan by cheque of Rs. 3. Interest allowed by bank Rs. Received a cheque for commission Rs. 5.000 out of into bank 31. and deposited into bank 29. Purchased machinery from Rajiv for 5. 30 31. [10 Marks] Q. 500 became bankrupt and paid us 50 paise in the rupee 30.000 and deposited Rs. 500 from R. Issued cheque to Ram Saran for cash purchased of furniture Rs.

40.000 50.000 80.000 Long term Investment 28.000 Debtors 60.000 Stock 38.000 14.000 44.000 Total 7.400 20.14.90.2007 Cash 1.00.48.000 Land 14.000 28.000 1.000 Building 2.40.000 Liabilities and Equity .000 Short-term investment 42.000 Machinery 2.000 1.26.400 4.

30.000 Total 7.48.40.000 Secured loans 2.000 10.000 Share capital 2.34.60.400 1.000 60.000 Bills Payable 20.000 1.000 Share premium 24.000 Creditors 40.20.000 1.00.Accumulated depreciation 1.000 .000 Nil Reserves and surplus 1.10.00.000 30.000 Income statement Sales 2.90.400 4.

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800 Total 18.000 Loss on sale of machinery 2.11600 [ 10 Marks] .200 Gain on sale on long-term investment 4.200 Less Operating expenses: Depreciation Depreciation machinery 20.000 Other expenses 40.000 Net profit from operation 13.600 Gross Profit 1.34.6000 2) Dividends paid during the year Rs.18000 after adjusting depreciation on machinery sold].05.70000 was purchased and worth Rs.Cost of goods sold 1.000 92.10000 was sold during the year [Accumulated depreciation on machinery is Rs. Proceeds from the sale of machinery were Rs.000 Net Profit 16.000 building 32.000 Adjustments: 1) Machinery worth Rs.

Answer all the questions.1 Selected financial information about Vijay merchant company is given below: 2010 2009 . Q.Q.6 What is a cash budget? How it is useful in managerial decision making? [10 Marks] Master of Business Administration .2 (60 Marks) MB0041 Financial and Management Accounting Note: Each question carries 10 Marks.MBA Semester 1 Subject Code Subject Name 4 Credits (Book ID: B1130) Assignment Set.

000 43.500 800 Other current assets 4. [10 Marks] Q..Sales 69. the company had debtors of Rs. State whether there is a favorable or unfavorable change in liquidity from 2009 to 2010. [10 Marks] Q.200 3. Your answer should be studded with examples (preferably firm name and product) for each method of costing.000 Compute the current ratio.2 Explain different methods of costing. At the beginning of 2009.3000. [10 Marks] .000 Inventories 11.000 11.500 Debtors 7.400 5.700 Current liabilities 16.000 32.000 Cost of Goods Sold 57.3 State the importance of differentiating between the fixed costs and variable costs in managerial decision.000 2. quick ratio. average debt collection period and inven tory turnover for 2009 and 2010.500 Cash 1.2500 and inventory of Rs.

000 Additional Information 1) After preparing the trial balance. 2) Create 10% provision for doubtful debt.X a debtor has become insolvent and nothing could be recoverd from him and. it is learnt that Mr.05. Required: Pass the necessary journal entries and show the sundry debtors . therefore the entire amount of Rs.000 Bad debts 3.5.Q.4 Following are the extracts from the trial balance of a firm as at 31st March 2009 Name of the account Dr Cr Sundry debtors 2.000 due from him was irrecoverable.

a decrease in the amount of bad debts. [10 Marks] Q. an increase in discounts taken. and a decrease in investment in accounts receivable. the company s (select the best one and give reason) 1) Average collection period has decreased 2) Percentage discount offered has decreased 3) Accounts receivable turnover has decreased 4) Working Capital has increased.account. [10 Marks] Q.6 Identify the users of accounting information.5 A change in credit policy has caused an increase in sales. bad debts account. P&L a/c and Balance sheet as at 31st March 2009. Based upon this information. [10 Marks] . provision for doubtful debts account.