Hall Ticket No Question Paper Code: CMBB02
INSTITUTE OF AERONAUTICAL ENGINEERING
(Autonomous)
MBA I Semester End Examinations Regular) December, 2018
Regulation: IARE-R18
ACCOUNTING FOR MANAGEMENT
Time: 3 Hours Max Marks: 70
Answer ONE Question from each Unit
All Questions Carry Equal Marks
All parts of the question must be answered in one place only
UNIT I
1. Discus briefly the basic concepts and conventions of accounting.
What do you mean by double entry system? What are its merits? Discuss
2. Enumerate the money measurement concept dual aspect concept and cost concept in detail.[7M]
Describe the manners in which management satisfies the various needs of appropriate management
accounting functions and scopes.
UNIT II
3. What is Cash Book? Elaborate the features and various kinds of cash books.
State the accounts involved in the following transaction and which account is to be debited and
which account is credited.
April 2016
1. Karthik commences business with Rs. 1,00,000.
5. Purchase furniture for Rs. 5.000.
7. Sold goods for cash Rs. 5,000.
9. Sold goods to Raj for Rs. 20,000.
10. Paid salaries Rs. 10,000.
12. Purchased goods from Ram for cash Rs. 9,000.
14. Commission received Rs.800.
16. Paid outstanding expenses Rs.900.
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4. On January 1st, 2009 an asset was purchased for Rs.50,000/-. What would be its book value
after three years if it was depreciated by straight line and written down value methods at the
rate of 10% p. a.?
From the following trial balance of Evergreen and Company, prepare trading and Profit and Loss
account and Balance sheet.
Trial Balance as on 31st December 2005.
Table 1
Particulars Debit Credit[Rs.]
Cash in hand 2,400
Purchase 2,40,000
Stock on 1st January 2005 70,000
Debtor 1,00,000
Plant and Machinery 1,20,000
Furniture 30,000
Bills Receivable 40,000
Rent and Rates 20,000
Wages 32,000
Salaries 37,600
Capital 2,00,000
Bills payable 44,000
Creditors 48,000
Sales 4,00,000
Total 6,92,000 6,92,000
Additional Information:
Closing inventory as on 31st December 2005 Rs.50,000
Outstanding wages R.5,000
Depreciation on Plant and Machinery at 10 percent and furniture at 5 percent.
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UNIT III
5. What is Equity Share? Explain its merits and demerits.
The following purchases and issue were made in a company:
Table 2
Date Particulars Units and Rate
1-8-2002 Purchases 300 unit at Rs.15
6-8-2002 Issues 200
10-8-2002 Purchases 400 unit at Rs.20
15-8-2002 Issues 450 units
22-8-2002 Purchases 400 units at Rs.25
What will be the value of stock on 22-8-2002 as per FIFO method?
6. Rohan Ltd. Registered with an authorised capital of Rs.10, divided into shares Rs.20/-
each. It issued 40,000 shares on to public per subscription payable as Rs.4/- on application,
Rs.4/- on allotment, Rs.6/- on first call, Rs. on second call, Rs. final call. All the shares
were subscribed and the money due were received with the exception of second and final call on
300 shares. Journalise.
The directors of Co Ltd., forfeit 10 shares of Rs. 50 each belonging to 'Karthik' who had paid
Rs. 5 per share on application, Rs.10 on allotment and Rs.5 on first call but failed to pay the
final call of Rs.30. The same shares are then reissued to as fully paid on receipt of Rs.40.
Pass journal entries with narration to record the forfeiture and the reissue of shares.
UNIT IV
7. Draft specimen of cash flow statement or Schedule of change in working capital.

From the following particulars prepare a Funds Flow Statement for the year ended 31st December
2001.
Net profit before writing off goodwill 21,500
Depreciation written off on fixed assets 3,500
Goodwill written off from profit 5,000
Dividend paid 7,000
Shares issued for cash 10,000
Purchase of machinery 20,000
Increase in working capital 8,000
8. Give a proforma of Fund Flow Statement in detail.
From the following profit and loss account, compute the Cash from Operations: Profit and Loss
Account for the year ended 30th June 1998.
Table 3
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UNIT V
9. Explain the advantages and limitation of Ratio analysis
Calculate: Current assets, Current liability, Stock turnover ratio from the following
information:
Current ratio 2.5
Working capital Rs. 60,000
Opening stock Rs. 29,000
Closing stock Rs. 31,000
Sales Rs. 3,20,000
Gross profit ratio 25% on sales.
10. Explain the various methods of classification of ratios.
From the following information, interpret the result of operation of a manufacturing concern
using trend ratio.
Income statement for the year ended 1999 to 2002: Amount[Rupees in Lakh]
Table 4