II/BCA/205 Student's Copy
2 0 1 8
CBCS
2nd Semester
BACHELOR OF COMPUTER APPLICATIONS
Paper BCA-205
Accounting and Financial Management
Full Marks 75
Time 3 hours
PART A—OBJECTIVE
Marks 25
The figures in the margin indicate full marks for the questions
SECTION—A
Marks 15
1. Tick the correct answer in the brackets provided 1×10=10
Companie's profit divided among shareholders is
interest
reserve
dividend
surplus
Which financial statement is used to show what the firm owns?
Income statement
Balance Sheet
Statement of retained earnings
Cash-flow statement
/541 1 Contd.
According to accounting equation, assets are equal to
liabilities
liabilities and equities
equities
All of the above
Which of the following is not a current asset?
Accounts receivable
Inventory of finished products
Inventory of raw materials
Land
Which of the following describes a record of the transactions?
General Ledger
Income Statement
Balance Sheet
Journal
is the art of recording, classifying and summarizing the
transactions and events of a business and interpreting the results
thereof.
Bookkeeping
Accounting
Management
Auditing
The long-term assets that have no physical existence but are rights
that have value are known as
current assets
fixed assets
intangible assets
investments
IV/BCA/205/541 2 Contd.
The assets that can be converted into cash within a short period
(i.e., 1 year or less) are known as
current assets
fixed assets
intangible assets
investments
Patents, copyrights and trademarks are
current assets
fixed assets
intangible assets
investments
The process of entering all transactions from the journal to ledger is
called
posting
entry
accounting
All of the above
2. State whether the following statements are True or False by putting
a Tick mark in the brackets provided 1×5=5
Accounting Standards and Generally Accepted Accounting Principles
are one and the same thing. T F
Accounting is an information and measurement system that identifies
records and communicates financial information to users.
T F
Finished goods are always viewed at cost of production.
T F
Inventory is more liquid than receivables. T F
Debt-equity ratio is called leverage ratio. T F
IV/BCA/205/541 3 Contd.
SECTION—B
Marks 10
Answer the following questions 2×5=10
1. What is overhead? Explain how they are allocated.
2. Differentiate between Financial Accounting and Management Accounting.
3. How does budget differ from forecast? Explain.
4. How is interest on capital treated as adjustment while preparing final
accounts?
5. Explain the concept of zero-based budgeting.
PART B—DESCRIPTIVE
Marks 50
The figures in the margin indicate full marks for the questions
Answer Question No. 1 and any three from the rest
1. From the following balances of Mr. Mawia, you are required to
prepare a Trading and Profit Loss Account for the year ended
31st December, 2017 and a Balance Sheet as on that date after
making necessary adjustments 15
Particulars R Particulars R
Purchases 1,20,500 Capital 52,000
Stock as on 1.1.2017 21,500 Sales 1,86,000
Salaries 14,000 Sundry Creditors 10,900
Rent and Taxes 3,000
Insurance 800
General Expenses 3,100
Wages 25,000
Machinery 31,000
Sundry Debtors 20,000
Cash at Bank 3,000
Drawings 7,000
2,48,900 2,48,900
IV/BCA/205/541 4 Contd.
Adjustments
Salaries for the month of December still unpaid R 1,600
Insurance prepaid to the extent of R 250
Depreciation on machinery by 10%
Closing stock was valued at R 26,000
Explain the term 'bad debts' by using a suitable example. 5
2. Journalize the following transactions 10
2017 R
March 1 Mohan commenced business with cash 10,000
" 3 Bought goods for cash 5,000
" 6 Sold goods to Praveen 3,000
" 7 Sold goods for cash 5,750
" 10 Received cash from Praveen 1,000
" 12 Purchased furniture from Michael Co. 10,000
" 18 Paid for office rent 500
" 24 Purchased goods from Balan 1,500
" 28 Cash paid to Balan 700
" 30 Received interest 240
3. Explain the following ratios and give brief descriptions of their usefulness 10
Current ratio
Stock turnover ratio
Debt-equity ratio
Debtors turnover ratio
4. "It is argued by some accountants that the full advantage of
standard costing can be achieved only when the standards are perfect."
In the light of the above statement, explain the objectives, advantages and
limitations of standard costing. 10
5. Discuss the differences between fixed and flexible budgeting. Why are
flexible budgets considered superior to fixed budgets? Explain. 10
6. What is a cost sheet? Give a specimen of cost sheet and explain the
different items included in it. 10