DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, MAY 2017.
First Semester
Technology Management
FINANCIAL AND MANAGEMENT ACCOUNTING
(Upto 2012-13 Academic year and 2013 Calendar year)
Time Three hours Maximum 100 marks
SECTION A — 8 40 marks)
Answer any FIVE questions.
1. Briefly explain the scope of Accounting.
2. State the advantages of double entry system and its
principles.
3. Discuss the uses and limitations of financial statements.
4. Distinguish between fund flow and cash flow analysis.
5. Briefly explain the need for budgeting.
6. What is meant by analysis and interpretation of financial
statements?
7. What are the requirements of a good budgetary control
system?
8. Enumerate the different techniques of capital budgeting.
Sub. Code
14
DE-775
WSS
2
SECTION B — 15 60 marks)
Answer any FOUR questions.
9. Describe the various types of financial accounting
concepts and conventions.
10. What is meant by Working Capital? Explain the factors
which influence working capital needs of a business.
11. "Radio Analysis is a tool of management for measuring
efficiency and guiding business policies" Discuss.
12. Mr. Senthil's book show the following balances. Prepare
his trading and profit and loss account for the year ended
31st March 2015 and Balance Sheet as on date
Particulars Debit
Rs.
Credit
Rs.
Stock on 1.4.2014 1,50,000
Purchases 1,30,000
Sales 3,00,000
Carriage inwards 2,000
Salaries 50,000
Printing and stationery 8,000
Drawings 17,000
Sundry creditors 20,000
Sundry debtors 1,80,000
Furniture 10,000
Capital 2,50,000
Postage and telephone 7,500
Interest paid 4,000
Machinery 41,500
Loan account 25,000
Suspense a/c 5,000
6,00,000 6,00,000
DE-775
WSS
3
Adjustments
Closing stock Rs. 1,20,000
Provide for bad and doubtful debts on debtors
Depreciate machinery and furniture by
Allow interest on capital at
Prepaid printing charges Rs. 2,000.
13. From the following information, you are required to
prepare a Balance Sheet of Swathik company show the
details of working.
Current ratio 1.75
Liquid ratio 1.25
Stock turnover ratio 9
Gross profit ratio 25%
Debt collection period 1 2
1 months
Reserves and surplus to share capital 0.2
Fixed assets turnover 1.2
Capital gearing ratio 0.5
Fixed assets to net worth 1.25
Sales for the year Rs. 12,00,000
14. Balance sheets of XYZ Ltd. as on 1.12014 and 31.12.2014
were as follows
Liabilities 31.12.14
Rs.
1.1.14
Rs.
Assets 31.12.14
Rs.
1.1.14
Rs.
Creditors 1,80,000 1,25,000 Cash 50,000 40,000
debentures 1,00,000 2,00,000 Debtors 30,000 15,000
Share capital 2,00,000 1,00,000 Stock 1,00,000 80,000
DE-775
WSS
4
Liabilities 31.12.14
Rs.
1.1.14
Rs.
Assets 31.12.14
Rs.
1.1.14
Rs.
Profit Loss
a/c
20,000

Short term
investments 1,20,000 50,000
Fixed assets 2,00,000 2,00,000
Profit Loss a/c 40,000
5,00,000 4,25,000 5,00,000 4,25,000
Provision for depreciation on 1.1.14 was Rs. 50,000. The
same on 31.12.14 was Rs. 60,000. During the year a
machine costing Rs. 30,000 (depreciation Rs. 10,000) was
sold for Rs. 16,000. Prepare Fund Flow Statement.
15. ABC Ltd has to select one of two alternative machines
whose particulars are given below
Particulars Machine A Machine B
Life 3 years 3 years
Investment outlay 2,00,000 2,00,000
Income after tax
Year 1 1,60,000 40,000
Year 2 1,20,000 1,40,000
Year 3 80,000 2,00,000
Calculate the average rate of return on investment and
advise on the selection of the machine.