M.B.A. I (Semester (CBCS) Examination, 2017
Paper II ACCOUNTING FOR MANAGEMENT
Day and Date Friday, 5-5-2017 Total Marks 70
Time 2.30 p.m. to 5.00 p.m.
Instructions Questions No. 1 is compulsory.
Attempt any 2 from Question No. 3 and 4.
Attempt any 2 from Question No. 6 and 7.
Figures to the right indicate marks.
1. From the following particulars prepare Trading and Profit and Loss A/c for the
year ended 31st March 2004 and a Balance Sheet as on that date of Mr. Rajan. 14
Trial Balance as on 31-03-2004
Particulars Debit Credit
Drawings 45,000
Goodwill 90,000
Capital 1,60,000
Bills Payable 33,800
Land and Building 60,000
Plant and machinery 40,000
Creditors 70,000
Purchase Returns 2,650
Loose Tools 3,000
Bills receivable 3,000
Sales 2,18,000
Stock 40,000
Purchases 51,000
Wages 20,000
Carriage Outwards 500
Carriage Inward 1,000
Coal 5,800
Salaries 35,000
Rent, Rates and Taxes 2,800
Discount 1,500
Cash at Bank 25,000

Cash in hand 400
Sundry Debtors 45,000
Repairs 1,800
Printing and stationary 500
Bad Debts 1,200
Advertisement 3,500
Sales Returns 2,000
Furniture 1,200
General expenses 5,250
Total 4,84,450 4,84,450
Additional Information
Closing Stock on 31st March 2004 was Rs. 35,000
Depreciate Plant and Machinery and Furniture by 10%.
Provide Rs. 1,500 for wages outstanding.
Advertisement prepaid are Rs. 500.
Provide on Debtors against bad debts.
Charge interest on Capital.
2. Textile Trading Company purchased a Machinery on 1st October 2015 for
Rs. 90,000 and incurred Rs. 10,000 on its erection expense. On 1st April 2016
another Machinery was purchased for Rs. 1,50,000.
On 1st October 2017, it sold of the first Machinery for Rs. 80,000. Depreciation
is to be charged at 10% p.a. under Straight Line Method on 31st March every
year. Prepare Machinery Account for four years. 7
Journalise the following transactions in the books of K.Singh. 7
March 2011
1 K. Singh started business with cash Rs. 80,000.
4 Paid into bank Rs. 4,000.
7 Goods purchased from Prasad Co. for Cash Rs. 30,000.
9 Goods sold for Cash Rs. 12,000.
12 Bought furniture from Kapur Co. for Rs. 10,000 and paid by cheque.
15 Goods sold to Sethi Co. for Rs. 8,000
17 Goods purchased from Gupta Co. for Rs. 20,000
21 Damaged goods returned to Gupta Co. Rs. 10,000
24 Cash received from Sethi Co. 7,880 in full settlement.
28 Withdraw goods for personal use Rs. 2,000.
29 Paid cash to Gupta Co. in full settlement of Rs. 9,800.
30 Paid salary to office staff Rs. 4,000.
3. From the following particulars prepare store Ledger on FIFO basis 7
July 2010
1 Opening Stock 1000 Units Rs. 5 each
3 Purchased 900 units Rs. 6 each
7 Issued to Job No. 137, 1200 units vide M.R. No. 034
11 Purchased 800 units Rs. 6.20 each
13 Purchased 300 units Rs. 6.40 each
15 Issued to Job No. 140, 400 units vide M.R. No. 042
17 Issued to Job No. 147, 600 units vide M.R. No. 048
19 Purchased 200 units Rs. 6.50 each
25 Issued to Job No. 137, 900 units vide M.R. No. 072
Explain Bank Reconciliation Statement. 7
4. Write short notes (any two) 14
Elements of Cost.
Computerized Accounting System.
Financial Accounting Vs Cost Accounting.
5. What do you mean by financial accounting Explain accounting concepts and
conventions in detail. 14
6. Enter the following transactions in three column each book of Mr. Sitaram for
January 2011. 14
Jan. 1 Sitaram Commences his business with cash Rs. 30,000
Jan. 2 He pays into bank current account Rs. 20,000
Jan. 3 He receive cheque from Kulwant Rai Rs. 1,000
Jan. 7 He pays Kulwant Rai's cheque into bank Rs. 1,000
Jan. 10 He pays Radha Sharan by cheque Rs. 1,980 and receive discount Rs. 20
Jan. 11 He receive cheque from Wasim Rs. 970 and allow him discount Rs. 30
Jan. 15 He makes sales for cash Rs. 2,000
Jan. 17 Cash deposited into bank Rs. 3,000
Jan. 19 He purchased a motor car by cheque Rs. 6,500
Jan. 20 He purchased goods by cheque Rs. 1,500
Jan. 22 He pays Sushant Traders in cash Rs. 2,000 and receives discount Rs. 100
Jan. 29 He withdraws from bank for office use Rs. 500
Jan. 30 He withdraws from bank for personal use Rs. 1,200
Jan. 30 Cheque received from Sham endorsed to Ram Rs. 5,000.
7. From the following information of Manasi Co., for the year 2014 you are required
to prepare 14
Material Consumed Prime Cost Work Cost
Cost of Production Cost of Goods Sold Net Profit
Rs.
Stock of Raw Materials 50,000
Purchase of Raw Materials 1,70,000
Stock of Raw Materials (31-12-2014) 80,000
Carriage Inward 10,000
Direct Wages 1,50,000
Indirect Wages 20,000
Other Direct Charges 30,000
Office Rent and Rates 1,000
Factory Rent and Rates 10,000
Indirect consumption of material 1,000
Depreciation on Plant 3,000
Depreciation on Office Furniture 200
Salesman salary 4,000
Salary to office Supervisor 5,000
Other factory expenses 11,400
Other Office expenses 1,800
General Managers Remuneration
Office 4,000
Factory 8,000
Selling Department 12,000
Other selling expenses 2,000
Travelling expenses of salesman 2,200
Carriage and Freight Outward 2,000
Sales 5,00,000
Advertisement 4,000