M.C.A. DEGREE EXAMINATION, NOVEMBER/DECEMBER 2017.
First Semester
Paper II FINANCIAL ACCOUNTING
2 90212 A
Time 3 Hours Max. Marks 70
SECTION — A
Answer any FIVE of the following. 6 30 Marks)
1. What is a trial balance?
2. What do you understand by double entry system?
3. What are the elements of cost?
4. Explain the concept of flexible budgeting.
5. Briefly write the functions of financial management.
6. What is over capitalisation?
7. Outline the sources of working capital.
8. What are the types of ratios?
SECTION — B
Answer the following questions. 10 40 Marks)
9. Briefly write about the Principles of Financial Accounting.
Or
10. Prepare a trading and Profit and loss Account from the following Information for
the Year ending 31st December 2012
Particulars Debit (Amount in Rs.) Credit (Amount in Rs.)
Stock 1-1-2012 2,000
Purchases 15,000
Returns outward 1,000
Sales 29,000
Return inward 500

Particulars Debit (Amount in Rs.) Credit (Amount in Rs.)
Salaries 2,000
Freight and cartage 6,200
Wages 2,000
Rent and taxes 500
Printing and stationery 100
Legal expenses 200
Advertisement 1,000
Bad debts 300
Discount 200
Trading expenses 500
Interest allowed by bank 200
Interest on investment 300
On 31st December 2012 closing stock was valued at Rs. 4,000.
11. Define "Cost". Examine the scope and importance of cost accounting.
Or
12. Draw a flexible budget for Overhead expenses on the basis of the following Data
and determine the overhead rate at 80% and 90% plant capacity.
Particulars Capacity Level at 80%
Variable Overheads:
Indirect labour 12,000
Stores 4,000
Semi Variable Overheads:
Power 30% fixed) 20,000
Repairs fixed) 20,000
Fixed Overheads:
Depreciation 11,000
Insurance 3,000
Salaries 10,000
Estimated direct labour hours 1,24,000
13. What are the disadvantages of under capitalization?
Or
14. What is cost of capital? Discuss its significance in brief.
3 90212 A
15. Outline the techniques of financial analysis.
Or
16. The following information is extracted from the books of manufacturing company
Period Sales Profit
I 20 lakhs 2 lakhs
II 30 lakhs 4 lakhs
Calculate:
P/V ratio
B/E Sales
The sales required to earn a profit of Rs. 5 lakhs
The Profit when sales are Rs. 10 lakhs.
———————