Hall Ticket No:
Question Paper Code C3004
(AUTONOMOUS)MBA I Semester Regular Examinations, January 2018
(Regulations: VCE-R15)FINANCIAL ACCOUTING AND ANALYSIS
(Master of Business Administration)Date: 04 January, 2018 FN
Time: 3 hours
Max Marks: 70
Answer any FIVE Questions
All Questions carry equal marks
1.
a)What do you mean by accounting?
4M
b)Explain accounting concepts.
10M
2.
a)What is Journal? Distinguish Journal from ledger.
7M
b)Prepare a Trial Balance from the following Ledger Account balance.
Name of the A/c
Rs
Name of the account
Rs
Capital
50000
Plant and Machinery
20000
Reserves
10000
Cash and bank balance
10000
Debtors
8000
Rent (Cr)9000
Creditors
20000
Bad debts
500
Sales
30000
Provision for doubtful debts
2000
Purchases
28000
Commission received
500
Return Inward
500
Preliminary expenses
2000
Return outward
1000
Bills payable
10000
Freight
500
Outstanding rent
500
Furniture
15000
Bank loan
5000
Salary
5000
Income tax paid
3000
Land and building
30000
Opening stock
15500
7M
3.
a)What is Depreciation? Explain any four methods of charging depreciation.
7M
b)Premium Automobile Ltd., purchased a machine on January 2012 for Rs.9,00,000. On April 1 2013 the company bought another machine for Rs 10,00,000 and on the same date sold the machine bought on January 1 2012, for Rs 7,50,000 The company charged straight-line depreciation 10% p.a. Show Machinery account and depreciation account up to the year ending 31st Dec 2014.
7M
4.
a)Explain need for inventory valuation.
4M
b)From the following details of store receipts and issues of material in a manufacturing unit, prepare the stores ledger and value inventory using Weighted Average method.
November:
1 Opening stock 2,000 units Rs 5 each
3 Issued 1500 units to production
4 Received 4500 units Rs 6 each
8 Issued 1600 units to production
9 Issued 100 units to production
16 Received 2400 units Rs 6.50
19 Issued 200 units to production
20 Received 1000 units Rs 7.00 each
24 Issued to production 2100 units
27 Received 1200 units Rs 7.50 each
10M
Cont…2
2
5.
a)Explain issue of shares at Par, Discount and Premium.
6M
b)Explain methods followed for redemption of debenture.
8M
6.
a)Distinguish cash profit from book profit.
4M
b)Prepare Funds Flow Statement from the following Balance Sheet of Vikas exports.
Liabilities
2009
2010
Assets
2009
2010
Creditors
Bills payable
Share capital
Debentures
General reserve
1,50,000
1,00,000
5,50,000
1,00,000
1,00,000
2,00,000
1,10,000
5,90,000
2,00,000
2,00,000
Stock
Sundry Debtors
Cash
Plant Machinery
Investments(LT)2,00,000
1,50,000
50,000
5,00,000
1,00,000
2,40,000
2,00,000
60,000
7,00,000
1,00,000
10,00,000
13,00,000
10,00,000
13,00,000
10M
7.
a)Explain the importance of ratio analysis.
4M
b)From the information in table, Calculate the following Ratios; Gross profit ratio, Net profit Ratio, Current Ratio, Liquid ratio and Proprietary Ratio.
Particulars
Amount
Particulars
Amount
Sales
Cost of sales
Net profit
Average inventory
Other current assets
25,00,000
20,00,000
4,00,000
8,00,000
7,00,000
Fixed assets
Net worth
Debts (long term)Current liabilities
Net profit before tax interest
14,40,000
15,00,000
9,00,000
5,00,000
8,00,000
10M
8.
a)What are Accounting standards? Explain advantages of accounting standards.
7M
b)Explain the limitations of financial statements.
7M