Total No. of Questions 10] [Total No. of Pages 02
P.G. DIPLOMA DEGREE EXAMINATION, MAY 2018
FINANCIAL BANKING FINANCIAL MANAGEMENT
Accounting for Managers
Time 3 Hours Maximum Marks :70
Answer any five questions.
All questions carry equal marks.
Q1) X Co. Ltd., forfeited 100 shares of Rs.10 each fully called up, held by Mr. Arun for
nonpayment of allotment money of Rs.3 per share and first and final call of Rs.4 per
share. He paid application money Rs.3 per share. These shares were reissued
Rs.9 per share as fully paid. Pass forfeiture and reissue journal entries.
Q2) Prepare material variance report based on the following details
Standard.
X 50 kg Rs.10 per kg
Y 150 kg Rs.6 per kg
The standard loss 30%
Actual
X 80 kg 12 per kg
Y 160 kg 5 per kg
The actual production is 210 kg.
Q3) The following trial balance is extracted from the books of ABC Co. for the year
ended 31st December 2015. Prepare the trading, profit and loss account and the
Balance Sheet as on that date.
Particulars Debit Credit
Furniture 640
Motor Vehicle 6,250
Buildings 7,500
Capital 12,500
Bad debts 125
Interest received 200
Sundry debtors 3,800
Sundry creditors 2,500
Opening stock 3,460
Purchases Sales 5,475 15,450
(DFM02/DBFM02)
Bank O/D 2,850
Advertising 450
Cash 650
Insurance 750
Salaries 3,500
Machinery 900
33,500 33,500
Q4) What is meant by generally accepted accounting principles? Explain the accounting
convertions and concepts.
Q5) Define accounting and explain its functions.
Q6) What is profit prior to incorporation? How do you opportion various expenses and
incomes between pre and post incorporation periods?
Q7) "The basic variances are price and usage Variances" Discuss this statement in
relation to material, labour and overhead variances.
Q8) Explain the accounting procedure for declaring and distributing dividends.
Q9) What are the advantages and disadvantages of inflation accounting?
Q10) How the funds flow statement is different from cash flow statement? Give a
specimen of funds flow statement with imaginary figures.