M.C.A. DEGREE EXAMINATION, APRIL 2017
Second Semester
ACCOUNTING AND FINANCIAL MANAGEMENT
(2012 onwards)
Time 3 Hours Maximum 75 Marks
Part A (10 X 2 20)
Answer all questions.
1. Define financial accounting.
2. What is ratio analysis?
3. What is a cost sheet?
4. What is break even analysis?
5. What do you mean by overheads?
6. What is zero base budgeting?
7. Define financial management.
8. Define working capital.
9. What do you mean by cost of capital?
10. What is meant by capital structure?
Sub. Code
541205/
545205
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Part B X 5 25)
Answer all questions, choosing either or
11. Journalise the following
Jan 15 Freight on goods purchased Rs. 500
Jan 18 Freight paid on furniture purchased
Rs. 200
Jan 20 Wages paid to Selvam to erect a machine
Rs. 300
Jan 21 Received Rs. 10,000 from Narayanan
Jan 24 Received Rs. 500 from Narayanan as
interest.
Or
Explain the errors disclosed by Trial Balance.
12. Explain in detail, the elements of cost.
Or
The sales turnover and profits during two years
were as follows
Year Sales
Rs.
Profit
Rs.
1991 1,40,000 15,000
1992 1,60,000 20,000
Calculate P/V ratio and Break even point.
13. You are required to prepare a production budget for
the half year ending June 2000 from the following
information.
Product Budgeted sales
quantity
Actual stock on
31.12.99
Desired stock on
30.6.2000
S 20,000 4,000 5,000
T 50,000 6,000 10,000
Or
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Calculate material variance from the following
data
Quantity Standard
400 kgs
Actual
460 kgs
Price Rs. 2/kg Rs. 1.5/kg
Value Rs. 800 Rs. 690
14. What are the methods of dealing with risk?
Or
A company is considering investment of
Rs. 10,00,000 in a project. The following are the
income forecasts after depreciation and tax
1st year loss Rs. 1,00,000
2nd year profit Rs. 3,00,000
3rd year profit Rs. 4,00,000
4th year profit Rs. 2,00,000
5th year profit Rs. 2,00,000
Calculate the Accounting Rate of Return (ARR).
15. Define cost of capital and explain its types.
Or
What are the determinants of capital structure?
Part C X 10 30)
Answer any three questions.
16. Explain the various concepts of accounting.
17. From the following information prepare a balance sheet.
Working capital Rs. 1,20,000
Reserves and surplus Rs. 80,000
Bank overdraft Rs. 20,000
Fixed asset Proprietary ratio Rs. 0.75
Current ratio 2.5
Liquidity ratio 1.5
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18. From the following information, you are required to find
out
P/V ratio
Break even point
Profit
Margin of safety
Volume of sales to earn a profit of Rs. 6,000.
Total fixed costs Rs. 4,500
Total variable cost Rs. 7,500
Total sales Rs. 15,000
19. Draw up a flexible budget for the production at 75% and
100% capacity on the basis of the following data for a 50%
activity.
Per unit
Materials 100
Labour 50
Variable expenses (direct) 10
Administrative expenses fixed) 40,000
Selling and distribution expenses fixed) 50,000
Present production activity) 1,000 units
20. Enumerate the functions of financial management.
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