DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, DECEMBER 2017.
First Semester
FINANCIAL AND MANAGEMENT ACCOUNTING
(Upto 2012-13 Academic Year and 2013 Calendar Year)
Time Three hours Maximum 100 marks
SECTION A — × 8 40 marks)
Answer any FIVE questions.
1. Briefly explain different stages in the accounting cycle.
2. Describe the advantage of accounting.
3. Rectify the following errors discovered after the
preparation of trial balance.
A sales of Rs. 60 posted to the credit of a customer's
account.
Sales Book was under cost by Rs. 200.
Rs. 125 received from X posted to the credit of Y.
4. Discuss the objects of financial statement analysis.
5. What are the limitations of ratio analysis?
6. What do you mean by funds from operations?
7. Define budgetary control and state its objectives.
8. Explain the nature and concept of capital budgeting.
Sub. Code
15
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SECTION B — × 15 60 marks)
Answer any FOUR questions.
9. What are accounting concepts and conventions? How are
they evolved?
10. From the following details prepare trading and profit and
loss account and balance sheet
As on 1.1.02 As on 31.12.02
Creditors 37,500 43,750
Furniture 2,500 2,500
Cash 6,250 10,000
Debtors 62,500 87,500
Other details:
Drawing Rs. 10,000, Bad debts Rs. 1,250, Discount
received Rs. 3,750, Discount allowed Rs. 2,500, Sundry
expenses Rs. 7,500, payment to creditors Rs. 1,12,500,
collection from debtors Rs. 1,33,750, sales returns
Rs. 3,750, purchase returns Rs. 1,250, charge
depreciation on furniture.
11. Explain the methods of financial statement analysis.
12. From the following information, make out a statement of
Proprietor's fund with as many details as possible.
Current Ratio 2.5
Liquid ratio 1.5
Proprietory Ratio 0.75
(Fixed Assets/Proprietor's fund)
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Working capital Rs. 60,000
Reserves and surplus Rs. 40,000
Bank O.D Rs. 10,000
There is no long-term loan or fictitious assets.
13. Following are the summarized Balance sheet of a
company as on 31st Dec 2004 and 2005.
Balance sheet
Liabilities 2004 2005 Assets 2004 2005
Rs. Rs. Rs. Rs.
Share capital 1,00,000 1,50,000 Land and Building 1,00,000 90,000
General Reserve 50,000 60,000 Plant and
machinery
1,00,000 1,19,000
P and L a/c 30,500 30,000 Stock 50,000 24,000
Bank loan 70,000 Debtors 75,000 63,200
S. Creditors 50,000 37,200 Cash 500 1,000
Provision for
taxation
32,000 35,000 Bank 2,000 15,000
Goodwill 5,000
3,32,500 3,12,200 3,32,500 3,12,200
Additional information:
During the year ended 31st December 2005
Dividend for Rs. 23,000 was paid.
Depreciation written off on building Rs. 10,000,
machines Rs. 14,000.
Income tax paid during the year was Rs. 28,000.
Prepare a statement of cash flow for the year end 31st Dec
2005.
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14. ABC Ltd has prepared a budget for the production of lakh
units of the only commodity manufactured by them for a
costing period as under.
Rs.
Raw materials 2.52 per unit
Direct labour 0.75 per unit
Direct expenses 0.10 per unit
Works overheads fixed) 2.50 per unit
Administration overheads fixed) 0.40 per unit
Selling overheads fixed) 0.20 per unit
The actual production during the period was only
60,000 units. Calculate the revised budget.
15. A company has an investment opportunity costing
Rs. 40,000 with the following expected net cash flow,
after tax but before depreciation.
Year Net cash flow
1 14,000
2 14,000
3 15,000
4 25,000
5 14,000
Using 10% as the rate of discount, find out the following:
Pay back.
Net present value.
Profitability index.
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