Spring 2011(Feb-July)
Master of Business Administration - MBA Semester 1 Subject Code – MB0041 Subject Name – Financial and Management Accounting 4 Credits (Book ID: B1130)
Assignment Set- 1 (60 Marks)
Note: Each question carries 10 Marks. Answer all the questions. Assure you have just started a Mobile store. You sell mobile sets and currencies of Airtel, Vodaphone, Vodaphone, Reliance 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 followi f ollowing ng particulars: [10 Marks] 20X1 Jan 1. Cash in hand Rs. 50,000, Bank Overdraft Overdraf t Rs. 20,000 2. Paid into bank Rs. 10,000 3. Bought goods 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 Q.1
6. Received a cheque from Shyam to whom goods were sold for Rs. 800.Discount 800.Discount allowed 12.5% 7. Shyam’s cheque deposited into bank 8. Purchased an old old typewriter for Rs. Rs. 200 , Spent Rs. Rs. 50 on its repairs 9. Bank notified that Shyam’s cheque has been returned dishonored and debited the account in respect of charges Rs. 10 10. Received a money order Rs. 25 from Hari 11. Shyam settled his account by means of a cheque for Rs. 820, Rs. 20 being for interest charged. 12. W Withdrew ithdrew from the bank Rs. 10,000 18. Discounted a B/E B/E for Rs. 1,000 at 1% through through bank 20. Honored our own own acceptance by cheque Rs. 5,000 22. Withdrew fir personal use Rs. 1,000 24. Paid tread expenses Rs. 2,000
Spring 2011(Feb-July)
25. Withdrew from bank for private expenses Rs. 1,500 26. Purchased machinery from Rajiv for 5,000 and paid him by means of a bank draft purchased for Rs. 5,005 27. Issued cheque to Ram Saran for cash purchased of furniture Rs. 1,575 28. Received a cheque for commission Rs. 500 from R.& Co. and deposited into bank 29. Ramesh who owned us Rs. 500 became bankrupt and paid us 50 paise in the rupee 30. Received payment of a loan of Rs. 5,000 and deposited Rs. 3,000 out of into bank 31. Paid rent to landlord “Mohan” by cheque of Rs. 220 31. Interest allowed by bank Rs. 30 31. Half-yearly bank charges Rs. 50 Q.4 Choose an Indian Company of your choice that has adopted Balance Score Card and detail on it. [10 Marks] Q.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 Cash Short-term investment Debtors Stock Long term Investment Machinery Building Land Total Liabilities and Equity Accumulated depreciation depreciation Creditors Bills Payable Secured loans Share capital Share premium Reserves and surplus Total
2008 1,26,000 42,400 60,000 38,000 28,000 2,00,000 2,40,000 14,000 7,48,400
2007 1,14,000 20,000 50,000 28,000 44,000 1,40,000 80,000 14,000 4,90,000
1,10,000 40,000 20,000 2,00,000 2,20,000 24,000 1,34,400 7,48,400
60,000 30,000 10,000 1,00,000 1,60,000 Nil 1,30,000 4,90,000
Income statement Sales
2,40,000
Spring 2011(Feb-July)
Cost of goods sold Gross Profit Less Operating expenses: Depreciation – machinery Depreciation – building Other expenses Net profit from operation
1,34,600 1,05,200 20,000 32,000 40,000
92,000
Gain on sale on long-term investment Total Loss on sale of machinery
13,200 4,800 18,000 2,000
Net Profit
16,000
Adjustments: 1) Machinery worth Rs.70000 was purchased and worth Rs.10000 was sold during the year [Accumulated depreciation on machinery is Rs.18000 after adjusting depreciation depreciation on machinery sold]. Proceeds from the t he sale of machinery were Rs.6000 2) Dividends paid during the year Rs.11600 [ 10 Marks] Q.6
What is a cash budget? How it is useful in managerial decision making? [10 Marks]
Master of Business Administration - MBA Semester 1 Subject Code – MB0041 Subject Name – Financial and Management Accounting 4 Credits (Book ID: B1130)
Assignment Set- 2 (60 Marks)
Note: Each question carries 10 Marks. Answer all the questions. Q.1
Selected financial information about Vijay merchant company is given below: 2010
2009
Spring 2011(Feb-July)
Sales
69,000
43,000
Cost of Goods Sold
57,000
32,500
7,200
3,000
11,400
5,500
Cash
1,500
800
Other current assets
4,000
2,700
16,000
11,000
Debtors Inventories
Current liabilities liabilities
Compute the current ratio, quick ratio, average debt collection period and inventory turnover for 2009 and 2010. State whether there is a favorable or unfavorable change in liquidity from 2009 to 2010. At the beginning of 2009, the company had debtors of Rs..2500 and inventory of Rs.3000.
[10 Marks]
Explain different methods of costing. Your answer should be studded with
Q.2
examples (preferably firm name and product) for each method of costing. [10 Marks] State the importance of differentiating between the fixed costs and variable
Q.3
costs in managerial decision.
[10 Marks]
Following are the extracts from the trial balance of a firm as at 31st March
Q.4 2009
Name of the account
Dr
Sundry debtors Bad debts
Cr 2,05,000 3,000
Additional Information 1) After preparing the trial balance, it is learnt that Mr.X a debtor has become insolvent insolvent and nothing could be recoverd from him and, therefore the entire amount of Rs.5,000 due from him was irrecoverable. 2) Create 10% provision for doubtful debt. Required: Pass the necessary journal entries and show the sundry debtors
Spring 2011(Feb-July)
account, bad debts account, provision for doubtful debts account, P&L a/c and Balance sheet as at 31st March 2009.
[10 Marks]
Q.5 A change in credit policy has caused an increase in sales, an increase in discounts taken, a decrease in the amount of bad debts, and a decrease in investment in accounts receivable. Based upon this information, the company’s (select the best one and give reason) 1) Average collection period has decreased 2) Percentage Percentag e discount offered has decreased 3) Accounts receivable turnover has decreased 4) Working Capital has increased. [10 Marks] Q.6
Identify the users of accounting information.
[10 Marks]
