1
Seat No.: Enrolment
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA SEMESTER EXAMINATION WINTER 2018
Subject Code:2810001 Date:24/12/2018
Subject Name: Accounting for Managers
Time: 10.30AM to 1.30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q-1 From the four alternative answers given against each of the following cases, indicate the
correct answer :(just state C or
1.
Patent is shown under
Fixed Assets Current Liabilities
Current Assets None of the above
2
Purchase book is an example of
Subsidiary book Journal
Ledger None of the these
3
FIFO Means
First in first out Fifth in first out
First in fifth out None of the above
4
Which of this is not a fixed assets
Land and building Cash
Furniture Machinery
5
Which of the following is an intangible assets
Goodwill Patent
Patent All of the above
6
Profit and loss statement is prepared for the purpose of
To know net profit
or loss of the
business
To know net financial position of the
business
To know gross
profit or loss of the
business
None of the above
Q-1 Explain the following terms
Business Entity Concept
Current ratio
Money Measurement concept
Define Accounting
Q-1 What do you understand by Trend Analysis? Explain in brief with hypothetical example.
Define Accounting. Explain the different branches of accounting
Q-2 Write Journal entry for the following transaction in the books of Pradeep .
2
1 April 2015. Pradeep started business with cash Rs.200000
3 April 2015.Paid in to bank Rs.70000
5 April 2015. Cash Sales Rs.30000
7 April 2015 Cash Purchases Rs.20000
12 April 2015. Paid Salaries Rs.15000
15 April 2015 Paid rent Rs.5000
25 April 2015 Commission received Rs.20000
OR.
Q-2 Explain the users of Accounting information
Q-3 Explain the Accounting standard Fixed assets
Rati udhyog ltd has established a new project details of fixed assets and expenditure incurred
during the construction of the projects are given below .determine the cost of each asset at the end of
the completion of the project.
Details Amount (in
Rs.)
Land
1,25,00,000
Building 2,50,00,000
Plant and machinery 20,75,00,000
Misc.Fixed assets 50,00,000
Pre-operative administration expenses on start
up ,commissioning ,test runs
1,50,00,000
Interest on term long loans during the
construction period
1,80,00,000
Total 28,30,00,000
OR.
Q-3 Explain the important tools of financial statement analysis.
Q-3 Prepare Stores ledger from the following transaction adopting the FIFO Methods of Pricing
out issues
1st March 2015. Opening stock 200 units at Rs.2.00 per unit.
2nd March 2015 Purchased 600 units at Rs.3.00 per unit.
6th March 2015 issued 600 units.
12th March 201555. Purchased 400 unit at Rs.3.40 per units.
22nd March 2015. Issued 300 units.
26th March 2015. Purchased 500 units at Rs.3.50 per units.
30th March 2015. Issued 200 units.
Q-4 What is Meaning of Depreciation Accounting and Causes of Depreciation.
Q-4 Following is the Balance sheet of Global Exports as on 31-03-2001 and 31-03-2012.
You are required to prepare the comparative Statement and Comment of the financial position of the
Concern.
Liabilities 31.3.2011 31.3.2012 Assets 31.3.2011 31.3.2012
Share Capital 1200000 1000000 Building 300000 2550000
Reserve and Surplus 20000 25000 Machnery 490000 325000
Secured loan 45000 30000 Stock 300000 375000
Unsecured loan 200000 250000 Debtors 250000 300000
Current liabilities 125000 150000 Cash 250000 200000
3
OR.
The ABC ltd purchased a machine costing Rs.90000 from MM ltd.The cost incurred
for bringing the ,machine to the point of use amounted to Rs.15000.
The estimated life of the machine is 8 years .
The scrape value at the end of the life is estimated to be Rs.5000
Calculate the rate of depreciation for the following methods.
Straight line method.
Written down value method.
Sum of years digit method for the first two years.
The unit of production method assuming the first two years production as 30000 and 25000
units respectively 1,50,000 units during the whole life.
Q-4 what do you mean by 'Fund Flow Statement'? Discuss the importance of Fund Flow
Statement.
Q-5 You are given the following figures about the delta ltd for the accounting year ended on 31st
December 2008
Current ratio:2.5 Liquid ratio 1.5, Net working capital Rs.300,000
Stock turnover ratio: 6 times (Cost goods sold to average stock)
Gross profit 20% Average collection period 2 Months
Net Fixed turnover ratio 1.5 times
Debt-equity ratio 7:6
Equity capital to reserve 0.5
You are required to find out following information
Current Assets Current Liabilities Average Closing stock Cost of Goods sold
Gross profit Sales Net fixed assets 8 Average debtors Cash Bank balance
10) Long term debt 11) Equity capital 12) Reserve
OR.
Q-5 From the following Trial balances of Mr.Nagaraj Prepare the Final Account for the Year Ended
31st March 2010 and the balance sheet as the that date.
Particular Debit Credit
Land and Building 50000
Purchases 110000
Stock 40000
Returns 1500 500
Wages 10000
Salaries 9000
Office expenses 2400
Carriage inward 1200
Carriage outward 2000
Discount 750 1200
Bad debts 1200
Sales 205000
Capital account 130000
Insurance 1500
Commission 1500
Plant and Machinery 50000
Furniture 10000
Bills receivable 20000
4
Sundry debtors 40000
Sundry creditors 25000
Cash 1500
Bank balance 4500
Office equipment 12000
Bills payable 2350
Total 367550 367550
The following adjustments are required.
Closing stock amounted to Rs.60000
Outstanding liabilities Wages Rs.2000 and Rent Rs.3000
Depreciate Land and building at 5 Plant and Machinery at 10 ,office equipment and
furniture and fixtures at 10
Insurance premium prepaid Rs.200
Provide interest on Capital at
Raise bad and doubtful debts reserve at 5 on Sundry Debtors.