M.B.A. DEGREE EXAMINATION, NOVEMBER 2017
Business Analysts
ACCOUNTING FOR BUSINESS ANALYSTS
(2016 Onwards)
Time 3 Hours Maximum 75 Marks
Part A (10 x 2 20)
Answer all questions.
1. What is book-keeping?
2. What is double-entry system of book-keeping?
3. What is trail balance?
4. Explain errors of principle with example.
5. What is computerised accounting?
6. What is fund flow statement?
7. Explain cash flow statement analysis.
8. What are solvency ratio?
9. State the limitations of financial statements.
10. Bring out the uses of standard costing.
Part B x 5 25)
Answer all questions.
11. What are the merits of journal entry?
Or
What are direct and indirect expenses?
Sub. Code
12
CP-8244
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12. Enter the following transactions in the purchase
book of M/S. Subha Shree.
Jan 2003, 1st Purchased 100 kg of coffee seeds from
Suresh Rs. 40 per kg
Jan 5th Purchased 80 kg of tea dust from Hari
Rs. 20 per kg
Jan 12th Bought from Rekha Sugars, Trichy
1,200 kg of Sugar Rs. 8 per kg
Jan 18th Bought from Perumal sweets, Chennai,
40 tins of sweet Rs. 200 per tin.
Jan 20th Purchased from Govinda Biscuit
company Chennai 20 tins of biscutuis
Rs. 400 per tin.
Or
From the following information, calculate fund from
operations of the second year.
I Year II Year
Profit and loss a/c 20,000 30,000
General reserve 30,000 35,000
Goodwill 10,000 8,000
Preliminary expenses 7,000 4,000
Depreciation 10,000 11,000
13. Explain the merits of ratio analysis.
Or
From the following particulars, calcualte
Material price variance
Material usage variance.
Standard Actuall
X 40 kg at Rs. 3 50 kg at Rs. 4
Y 50 kg at Rs. 4 40 kg at Rs. 3
CP-8244
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14. From the following information calculate working
capital. Cash Rs. 10,000, Bank Rs. 40,000,
Stock Rs. 50,000, Debtors Rs. 30,000, Creditors
Rs. 40,000, Machinery Rs. 80,000.
Or
Calculate Break-even point in rupees.
Sales Rs. 5,00,000, Fixed expenses Rs. 1,00,000,
Materials Rs. 1,50,000, Wages Rs. 1,00,000 and
Variable production expenses Rs. 50,000.
15. Define depreciation. What is the necessity for
providing depreciation?
Or
Explain the straight line method of providing
depreciation.
Part C x 10 30)
Answer all questions.
16. Distinguish between single entry and double entry
system.
Or
From the following balances prepare Trading and
P L a/c for the year ending 31/12/2006 and
balance sheet as on that date.
Debit balance Rs. Credit balance Rs.
Salaries 5,500 Creditors 9,500
Rent 1,300 Sales 32,000
Cash 1,000 Capital 30,000
Debtors 40,000 Loans 10,000
Sundry expenses 600
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Debit balance Rs. Credit balance Rs.
Purchases 25,000
Buildings 2,500
Bank balance 5,600
81,500 81,500
Closing stock Rs. 900.
Salary outstanding amounted to Rs. 1,100.
Rent paid in advance Rs. 100.
Provide for doubtful debts against debtors.
17. Discuss the objectives of financial statement
analysis.
Or
Determine the value of closing stock from the
following.
Sales Rs. 4,00,000
Gross profit ratio 10%
Stock turn over ratio 4 times
Closing stock was Rs. 10,000 in excess of opening
stock.
18. Explain the meaning and features of marginal
costing.
Or
From the following information calculate.
Break-even point
Sales required to earn a profit of Rs. 10,000.
Rs.
Sales 30,000
Variable expenses 14,000
Fixed expenses 13,000
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