B.C.A. (Three Year) DEGREE EXAMINATION, OCTOBER/NOVEMBER 2017.
End Semester Examination
Third Semester
Part II
(Regular/Supplementary)
ACCOUNTING AND FINANCIAL MANAGEMENT
2 C 3501
Time 3 Hours Max. Marks 70
PART — A
Answer any FIVE of the following questions. 4 20 Marks)
1. Accounting cycle.
2. Types of subsidiary books.
3. Objectives of financial management.
4. Limitations of Break-Even-Analysis.
5. Importance of funds flow.
6. Significance of ratios.
7. Need for preparing Trial Balance.
8. Uses of Accounting.
PART — B
Answer ALL the following questions. 10 50 Marks)
UNIT I
9. Journalise the following transactions
Samanta started business with 10,000 cash and a building worth
50,000
Purchased goods worth 20,000 out of which goods worth 12,000
were on credit from Kajol
Sold goods on credit worth 16,000 to Shruthi
Received 15,600 from Shruthi in full settlement of her account
Paid 11,800 to Kajol in full settlement of 12,000 due to her
Paid wages 500 and salaries 2,000

With drew 500 from the business for personal expenses
(viii) Sold goods to Anupama 2,500
Goods returned by Anupama 500
Insurance premium due 1,250.
Or
Explain various concepts of accounting.
UNIT II
10. Enter the following transactions in the proper subsidiary books
2017
March 1 Purchased goods from Susmita Co. 50,000
" 4 Sold goods to Shilpa 30,000
" 7 Goods purchased from Priyanka 40,000
" 10 Sold goods to Deepika 44,000
" 14 Sold goods to Karishma 34,000
" 17 Goods returned by Deepika 4,000
" 19 Goods returned to Susmita Co. 6,000
" 21 Goods returned to Priyanka 2,500
" 23 Goods retuned by Karishma 1,500
" 27 Sold goods to Namrata 25,000
Or
Prepare Trading, Profit and Account and Balance sheet from the following
particulars as on 31st March 2017.
Trial Balance
Particulars Debit
Credit
Capital Drawings 2,800 20,000
Cash-in-hand 3,000
Purchased sales 24,000 30,000
Returns 2,000 4,000
Bank overdrafts 4,000
Salaries 4,000
Taxes and Insurance 1,000
Turn Over
3 C 3501
Provision for doubtful debts 2,000
Bad debts 1,000
Sundry debtors creditors 10,000 3,700
Commission 1,000
Investments 8,000
Stock (as on 1.4.2016) 6,000
Furniture 2,200
Bills receivable Bills payable 6,000 5,000
Sales tax collected 300
70,000 70,000
Additional information
Salary 200 and taxes 800 are outstanding
Insurance paid-in-advance 100
Depreciate furniture 10% p.a
Stock as on 31st March 2017 is 9,000.
UNIT III
11. Convert the following balance sheets into comparative balance sheet and
interpret the results.
Balance sheets as on 31st December 2014 and 2015
Liabilities 2014 2015 Assets 2014 2015
Equity share capital 1,00,000 1,20,000 Cash 20,000 1,500
Capital reserves 9,000 18,500 Debtors 45,000 39,000
General reserves 50,000 45,000 Stock 32,000 25,000
Bank loan 9,000 10,000 Investments 30,000 25,000
Debentures 45,000 65,000 Buildings 80,000 1,40,000
Sundry creditors 20,000 15,000 Land 19,800 34,500
Others 1,500 2,000 Furniture 7,700 10,500
2,34,500 2,75,500 2,34,500 2,75,500
Or
4 C 3501
Following are the income statements of a company for the years ending
Dec 31, 2013 and 2014.
2013 2014
is is
Sales 1,000 1,400
Miscellaneous income 40 30
1,040 1,430
Expenses
Cost of sales 650 1,020
Office expenses 40 50
Selling expenses 60 90
Interest 50 60
800 1,220
Net profit 240 210
1,040 1,430
Prepare common-size income statement.
UNIT IV
12. From the following details, make out the balance sheet with as details as
possible
Stock velocity 6
Capital turnover ratio 2
Fixed assets turnover 4
Gross profit turnover ratio 20%
Debtors velocity 2 months
Creditors velocity 73 days
The gross profit was 60,000; reserves and surplus amounts to 20,000
closing stock was 5,000 in excess on opening stock.
Or
Turn Over
5 C 3501
From the following balance sheets of Raj Ltd, prepare funds flow statement,
including a schedule of changes in working capital for the year ended
31.12.2014.
Liabilities 31.12.2013 31.12.2014 Assets 31.12.2013 31.12.2014
Share capital 70,000 74,000 Cash 9,000 7,800
Debentures 12,000 6,000 Debtors 14,900 17,700
Reserve for doubtful debts 700 800 Stock 49,200 42,700
Trade creditors 10,360 11,840 Land 20,000 30,000
Profit and loss a/c 10,040 10,560 Good will 10,000 5,000
1,03,100 1,03,200 1,03,100 1,03,200
Additional information
Dividend paid 3,500
During the year, land was purchased for 10,000
UNIT V
13. The following information relates to production and sale of an article for April
and May 2017.
April May
Sales 38,000 65,000
Profit 3,000
Loss 2,400
Calculate
Break-even sales volume
Profit or loss 46,000 sales
Sales to earn a profit of 5,000
Or
The expenses budgeted for production of 10,000 units in a factory are
Per unit
Materials 70
Labour 25
Variable overhead 20
6 C 3501
Fixed overhead 1,00,000) 10
Direct variable expenses 5
Selling expenses fixed) 13
Distributors expenses fixed) 7
Administrative expenses 50,000) 5
Total cost per unit 155
Prepare a budget for the production
8,000 units and
6,000 units. Assume that administrative expenses are rigid for all levels
of production.
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