OU 2260 OU 2260
Code No. 1002
FACULTY OF MANAGEMENT
M.B.A. I Semester (CBCS) Examination, December 2018 January 2019
Subject: Accounting for Management
Paper Code MB 102
Time: 3 Hours Max.Marks: 80
PART A (5x4 20 Marks)
[Short Answer Type]
Note: Answer all the questions in not more than one page each.
1 Define accounting.
2 Distinguish capital and revenue expenditure.
3 Common size statement analysis objectives.
4 Balance Score Card
5 Make or Buy decision.
PART B (5x12 60 Marks)
[Essay Answer Type]
Note: Answer all the questions by using internal choice
in not exceeding four pages each.
6 Discuss the significance of Accounting Standards in global accounting environment.
OR
Journalize the following transactions and prepare Ledger Accounts.
1 Ram started business with a capital of Rs. 10,000
2 He purchased goods from Mohan on credit Rs. 2,000
3 He paid cash to Mohan Rs. 1,000
4 He sold goods to Suresh Rs. 2,000
5 He received cash from Suresh Rs. 1,000
6 He purchased furniture from Mr. Laxman Rs. 5,000
7 He deposited Rs. 2,000 in a bank
7 Explain the procedure involved in the preparation and presentation of financial
statements.
OR
A firm purchases a plant for Rs. 10,000 on 1st January 2013. Installation charges are
Rs. 2,000. Plant is estimated to have a scrap value of Rs. 1,000 at the end of its
useful life of 5 years. You are required to prepare the plant account for five years
charging depreciation according to straight line method.
8 Discuss the managerial uses and limitations of ratio analysis.
OR
Using the following information, compute the balance sheet items for a firm having a
sale of Rs. 36 lakhs.
Sales Total Assets 3 Sales Debtors 15
Sales Fixed Assets 5 Current ratio 2
Sales Current Assets 7.5 Total Assets Net worth 2.5
Sales Inventories 20 Debt Equity 1
OU 2260 OU 2260
Code No. 1002

9 Discuss the application areas of various tax planning and how it is different from tax
avoidance and evasion.
OR
From the following details, prepare a cash flow statement
Balance Sheets
Liabilities 2017

2018
Assets 2017

2018

Share Capital
P&L A/c
General Reserve
Creditors
Bills payable
10,000
5,000
4,000
8,000
5,000
15,000
8,000
6,000
12,000
3,000
Land
Machinery
Stock
Debtors
Cash
4,000
3,000
10,000
10,000
5,000
4,000
5,000
12,000
15,000
8,000
32,000 44,000 32,000 44,000
Additional information:
During the year depreciation charged on machinery for Rs. 1,000 and dividend paid
Rs. 2,000.
10 Draw a break-even chart and discuss the assumptions and utility of break-even
analysis.
OR
From the following details, find out:
Contribution per unit
ii) BEP
iii) Margin of safety
iv) Profit
Volume of sales to earn a profit of Rs. 24,000.
Units sold 20,000
Total sales Rs. 60,000
Total variable cost Rs. 30,000
Total Fixed cost Rs. 18,000