B.C.A. (Three Year) DEGREE EXAMINATION, OCTOBER/NOVEMBER 2018.
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 principles.
2. Uses of trial balance.
3. Comparative balance sheets objectives.
4. Sources of funds.
5. Limitations of ratio analysis.
6. Types of budgets.
7. Importance of break-even analysis.
8. Schedule of changes in working capital.
PART — B
Answer ALL the following questions. 10 50 Marks)
UNIT I
9. Journalise the following transactions.
Ramu commenced business with capital of 50,000 and out of which
30,000 deposited in bank.
Purchased goods for 10,000 and machinery 8,000.
Sold goods for 35,000.

Bought goods from Mohan for 25,000 and paid 5,000 immediately.
Sold goods to Kishore 15,000.
Paid 15,000 to Mohan.
Cash received from Kishore after discount of 500.
(viii) Paid salaries by cheque 5,000 and wages 2,000 in cash.
Rent received from Gopal 5,800.
Or
Define accounting and explain the functions of accounting.
UNIT II
10. Enter the following transactions in a three column cash book.
2018
July 1 Cash in hand 1,400 and at bank 9,900
" 2 Cash sales 5,500
" 3 Paid into bank 5,000
" 5 Purchased stationary 200
" 8 Paid Govind by cheque 500
Discount received 50
" 12 Goods purchased by cheque 2,500
" 15 Drew for personal use from Bank 600
" 20 Received from Kishore 2,950 in full settlement
of the account for 3,150
" 22 Drew from bank 2,000
" 25 Kishore cheque dishonoured
" 30 Bank charges as per pass book 20
Or
Turn Over
3 C-3501
sp 6
From the following figures of Mr. Kiran prepare final accounts for the year
ended 31st December 2017.
Capital 30,000 Drawings 6,000
Creditors 43,000 Bills payable 4,000
Debtors 51,000 Bills receivable 5,000
Goodwill 12,000 Furniture 8,500
Opening stock 47,000 Cash in hand 900
Cash at bank 12,500 Bank loan 6,000
Purchases 50,000 Customs duty 3,500
Sales 1,28,000 Salaries 9,500
Sales returns 1,000 Purchase returns 1,100
Travelling expenses 4,700 General expenses 2,500
Rent paid 2,000 Commission received 4,000
Adjustments
Closing stock 50,000.
Outstanding salaries 1,500.
Allow interest on capital at 5%.
Depreciate furniture by 10%.
Commission earned but not received 1,000.
UNIT III
11. From the following particulars prepare a comparative income statement and
study the profitability.
31.3.2017 31.3.2018
Sales 15,00,000 13,00,000
Cost of goods sold 11,00,000 9,00,000
Selling expenses 50,000 90,000
Administration expenses 1,50,000 50,000
Dividend received 50,000 25,000
Interest paid 10,000 5,000
Income tax 1,00,000 1,20,000
Or
4 C-3501
From the following balance sheets prepare common-size balance sheet and
interpret its financial position.
Balance sheet as on 31.3.2018.
Liabilities Assets
Equity share capital 50,00,000 Goodwill 5,00,000
Reserves and surplus 12,00,000 Plant and machinery 25,00,000
Creditors 10,00,000 Land and buildings 30,00,000
Bills payable 2,00,000 Investments 10,00,000
Provision for taxation 1,00,000 Stock in trade 5,00,000
debentures 20,00,000 Sundry debtors 10,00,000
Bills receivable 2,00,000
Cash in hand 3,00,000
Cash at bank 5,00,000
95,00,000 95,00,000
UNIT IV
12. The following are the ratios relating to the activities of modern traders.
Stock velocity 6 months
Creditors velocity 2 months
Debtors velocity 3 months
Gross profit ratio 25%
Gross profit for the year ended 31st March 2018.
Amounts to 5,00,000 closing stock of the year is 12,500 above the opening
stock. Bills receivable amounts to 27,500 and bills payable amounts to 12,000.
Find out
Sales
Purchases
Closing stock
Sundry debtors
Sundry creditors.
Or
Turn Over
5 C-3501
sp 6
From the following balance sheets of X Ltd prepare a schedule of changes in
working capital and funds flow statement.
Balance Sheet
Liabilities 2016 2017 Assets 2016 2017
Equity share capital 3,00,000 4,00,000 Buildings 1,60,000 1,20,000
General reserve 40,000 70,000 Plant and machinery 80,000 2,00,000
Profit and loss a/c 30,000 48,000 Goodwill 72,000 40,000
12% debentures 1,50,000 1,00,000 Debtors 2,20,000 2,85,000
Creditors 60,000 80,000 Bills receivable 18,000 24,000
Bills payable 15,000 19,000 Stock 20,000 30,000
Cash 25,000 18,000
5,95,000 7,17,000 5,95,000 7,17,000
Depreciation charged on plant and machinery was 20,000 and on building
was 40,000.
UNIT V
13. The following data is given at 60% activity. You are required to prepare a
budget at 80% and 100% activity.
Production at 60% activity 6,000 units
Material per unit
Labour per unit
Expenses (direct) per unit
Factory exp fixed)
Administration expenses fixed).
Or
6 C-3501
The sales and profit for this year are as under.
Year Sales Profit
2016 1,50,000 20,000
2017 1,70,000 25,000
Calculate
P/V ratio
Break even point
Sales of earn a profit of 40,000
Margin of safety at a profit of 1,25,000.
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