# BALAJI INSTITUTE OF ENGINEERING &SCIENCES

I Sem – MBA.- R10 I MID Examinations, Feb-2012

FINANCIAL ACCOUNTING & ANALYSIS
H.T.No.:

Date: 10.02.2012-FN Time: 2 hours.

Answer any FOUR questions. ( 4 x 10 = 40 Marks ) 1. Matrix Ltd Co purchased a second hand machine on 1st January 1999 for Rs.3,70,000 and immediately spend Rs.20,000 on its repairs and Rs.10,000 for installation. On 1 st July 2000 it purchased another machine for Rs.1,00,000. On 1st July 2001 it sold the first machine for Rs.2,50,000 and bought another machine for Rs.3,00,000. Depreciation was provided on the machine @10% on “original cost” annually on 31st December. With effect from 1st January 2002 Company changed the method of depreciation and adopted the W.D.V method and rate of depreciation @ 15% p.a prepare machine account for 4 years. 2. 3. Explain different methods of Inventory valuation? From the following particulars prepare store ledger account. 1998 Jan 1 Opening Stock 1,000 units @ 26 each. Jan 5 Purchased 500 units @ 24.50 each Jan 7 Issued 750 units Jan 10 Purchased 1500 units @ 24 each Jan 12 Issued 1100 units Jan 15 Purchased 1,000 units @ 25 each Jan 17 Issued 500 units Jan 18 Issued 300 units Jan 25 Purchased 1500 units @ 26 each Jan 29 Issued 1500 units Adopt the “LIFO” method of issue of material and ascertain the value of closing stock ? Define Ratio Analysis ? Explain importance of Ratio Analysis ? The following data from the books of “XYZ” Ltd as on 31-3-2004. Net Sales Rs. 24,00,000 Cost of goods sold Rs. 20,40,000 Inventory Rs. 8,00,000 Tax Paid Rs. 3,00,000 Equity Capital Rs. 50,00,000 (5,00,000 Equity shares @ 10 each) Calculate : 1) Gross Profit Ratio 2) Net Profit Ratio 3) Inventory Turnover ratio and Inventory holding period 4) EPS 6. a) b) Define Share ? Explain different types of Shares ? ( or ) ‘X’ Ltd was registered on January 1st 2006 with an authorized capital of Rs.10,00,000/divided into 10,000 equity shares of 100 each. Company offered 9,000 equity shares at ‘par’ payable as under . On application  Rs.10, on allotment Rs.  50/On First call  Rs. 20/-, on second call Rs.  20/All the shares were fully subscribed and amount duly received, pass the necessary journal entries and prepare balance sheet of the company.

4. 5.