M.B.A. (Semester (CBCS) Examination, 2018
ACCOUNTING FOR MANAGERS (Paper ii)
Day and Date Monday, 10-12-2018 Max. Marks 70
Time 2.30 p.m. to 5.00 p.m.
Instructions Q. No. 1 is compulsory.
Figures to the right indicate full marks.
1. Choose the correct alternative 14
Surplus of income over expenses is called as
Loss Profit
Financial societies Deficit
Concept which provides a line between present and future is known
as
Disclosure concept Entity concept
Going Concern concept Dual aspect
amount invested in business by proprietor.
Capital Assets
Drawings Profit
Goods purchased on credit is debited with
Purchase A/c Purchase return
Supplier's name Cash
is the statement prepared to show the financial position of
business as on particular date.
Balance sheet Trading A/c
Trail balance Profit and Loss A/c
Salary paid to Mandar should be debited to
Mandar A/c Salary A/c
Expenses A/c Cash A/c
P.T.O.
Set P
An entry recorded on both side of cash book is called
Jounal entry Subsidiary entry
Contra entry Bank entry
discount is not recorded separately in books of accounts.
Trade discount Cash discount
Discount on debtors Discount on creditors
In SLM of depreciation amount of depreciation remains year.
Constant Increases
Decreases Flexible
10) The amount realized at the end of working life of an asset
Residual value Market value
Original value Written down value
11) Share application and allotment account is
Personal Real
Nominal None of these
12) The branch of account which is concerned with ascertaining financial
position of the firm.
Cost accounting Management accounting
Financial accounting All of these
13) is prepared to ascertain the cost of product.
Balance sheet Cost sheet
Break even chart Trial balance
14) Direct expenses are also called as
Chargeable expenses Major expenses
Overhead expenses Sundry expenses
SLR-CL 2 *SLRCL2*
Set P
2. Attempt the following
Users of accounting information. 7
From the following ledger balances prepare Trail Balance of Mr. Nilesh as
31st March 2016.
Particulars Rs. Particulars Rs. Particulars Rs.
Goodwill 40,000 Plant and Machinery
1,60,000 Patents 36,000
Carriage 17,200 General
expenses
2,800 Electricity bill 12,000
Debtors 48,000 Advertisement 6,000 Bank loan 2,00,000
Trade
expenses
1,200 Furniture 28,400 Wages 56,000
Capital 2,00,000 Purchases 1,18,000 Opening stock 41,600
Creditors 82,000 Land and
building
2,13,200 Printing and
stationary
8,400
Sales 3,00,800 Commission

1,600 Interest on
Bank Loan
8,000
Discount 1,600 Cash in hand 2,000 Bills payable 19,200
7
3. Attempt the following
Record the following transactions in Cash Book of Mr. Durgesh in cash and
bank column.
01/05/2016 Cash in hand Rs. bank balance Rs.
07/05/2016 Cash purchases Rs.
09/05/2016 Cash sales Rs.
11/05/2016 Deposited cash into bank Rs.
17/05/2016 Received a bearer cheque from Suraj in full and final
settlement Rs. and deposited same in bank.
26/05/2016 Paid legal charges Rs. by cheque
28/05/2016 Withdrawn from bank for office use Rs. 7
*SLRCL2* SLR-CL 2
Set P
New trading company, Mumbai purchased machinery for Rs. on
1st April 2008. On 1st Oct. 2008 additional machinery was purchased for
Rs. On 1st October 2010 the company sold the machinery
purchased on 1st Oct. 2008 for Rs.
Depreciation is charged 10% p.a. under straight line method on 31st
March every year.
Prepare machinery and depreciation account for three years 2008-09,
2009-10 and 2010-11. 7
4. Journalize the following transactions in the books of Gautam for the month of
May 2017. 14
Debit balances
Cash at bank Rs. (Bank of India), Land and building Rs.
Furniture Rs. Debtors Vivek Rs. Harshal Rs. Stock
Rs.
Credit balances
Bank loan Rs. creditors Balaji Rs. Paras Rs. 9,000.
2007 May
1 Purchased goods list price Rs. at 10% trade discount on credit
from Mr. Vilas.
4 Received from Harshal Rs. in full and final settlement of his account
6 Goods costing Rs. destroyed by fire insurance company settled
the claim for Rs. only.
10 Interest on bank loan Rs. debited to the current account
14 Paid Rs. to Paras in full and final settlement of his account.
18 Purchased goods from Ishwar worth Rs. at 10% trade discount
and cash discount, paid 1/4 amount in cash and 1/4
th amount by cheque.
20 Purchased shares of Reliance Industries Rs. and paid brokerage
Rs.
SLR-CL 2 *SLRCL2*
Set P
22 Transferred Rs. from private bank of proprietor to business bank
account
23 Received bearer cheque of Rs. from Sujeet and deposited same
in bank
25 Cheque received from Sujeet was dishonoured
28 Bank charges charged by bank Rs.
OR
From the books of account of M/s xyz Enterprise, the following details have
been extracted for the year ending 31st March 2015. 14
Particulars Rs.
Opening stock 1,88,000
Closing stock 2,00,000
Materials purchased during the year 8,32,000
Direct wages paid 2,38,400
Indirect wages 16,000
Salaries to administrative staff 40,000
Freight-inward 32,000
Freight-outward 20,000
Sales 15,79,800
Cash discount allowed 14,000
Bad debts written off 18,800
Repairs of plant and machinery 42,400
Rent rates and taxes-factory 12,000
Rent rates and taxes-office 6,400
Travelling expenses 12,400
Salesmen's salaries and commission 33,600
Depreciation written off-plant and machinery 28,900
Depreciation written off-furniture 2,400
Director's fee 24,000
Electricity charges (factory) 48,000
Fuel (for boiler) 64,000
Sale of scrap 500
General charges 24,800
Manager's salary 48,000
*SLRCL2* SLR-CL 2
Set P
The Manager's time is shared between the factory and the office in the
ratio of 20:80. From the above details you are required to prepare a cost
sheet to show
Prime cost
Factory cost
Cost of production
Profit.
5. Following is the Trail Balance of M/s Hindustan Traders as on 31st March 2017.
You are required to prepare Trading and Profit and Loss Accounts for the year
ended 31st March 2017 and Balance Sheet as on the date 14
Particulars Rs. Particulars Rs.
Opening stock 50,000 Capital 80,000
Purchases 1,50,000 Interest 800
Return inward 2,000 Sales 2,50,000
Wages 6,000 Return outward 2,000
Salaries 12,000 Creditors 28,000
Discount allowed 1,400 Bills payable 11,400
Insurance 1,800 Discount received 2,400
Carriage 4,000 Commission 4,000
Office rent 2,000
Investment 20,000
Bad debt 800
Building 20,000
Cash in hand 6,600
Drawings 20,000
Debtors 48,000
Machinery 34,000
Total 3,78,600 3,78,600
SLR-CL 2 *SLRCL2*
Set P
Adjustments
Closing stock is valued at Cost Price Rs. and market price was
Rs. on 31-03-2017
Depreciate machinery by 10% and building by p.a.
Rent of Rs. and salaries of Rs. are outstanding.
Provide RDD at on sundry debtors
Interest on investment due of Rs. 1000/- but not received
Goods of Rs. distributed as free sample.