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ASSIGNMENT
DRIVE WINTER 2013
PROGRAM MBADS/ MBAFLEX/ MBAHCSN3/ MBAN2/ PGDBAN2
SEMESTER 1
SUBJECT CODE &
NAME
MB0041
FINANCIAL AND MANAGEMENT ACCOUNTING
BK ID B1624
CREDITS 4
MARKS 60

Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400
words. Each question is followed by evaluation scheme.

Q.No Questions Marks Total
Marks
1 Give the classification of Accounts according to accounting equation approach with
its meaning and examples. Compare the traditional approach with modern approach
of accounting equation approach. Analyze the transaction under traditional approach.
a. 20.1.2011 Paid salary Rs. 30,000
b. 20.1.2011 Paid rent by cheque Rs. 8,000
c. 21.1.2011 Goods withdrawn for personal use Rs. 5,000
d. 25.1.2011 Paid an advance to suppliers of goods Rs. 1,00,000
e. 26.1.2011 Received an advance from customers Rs. 3,00,000
f. 31.1.2011 Paid interest on loan Rs. 5,000
g. 31.1.2011 Paid instalment of loan Rs. 25,000
h. 31.1.2011 Interest allowed by bank Rs. 8,000

Classification of accounting equation approach with meaning and
examples
Analysis of transaction with accounts involved-nature of account-
affects and debit/credit

4

6
10
2 The following trial balance was extracted from the books of Chetan, a small
businessman. Do you think it is correct? I f not, rewrite it in the correct form.
Debits Rs. Credits Rs.
Stock
Purchases
Returns outwards
8250
12750
700
Capital
Sales
Returns inwards
10000
15900
1590
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Discount received
Wages and salaries
Rent and rates
Sundry debtors
Bank Overdraft
800
2500
1850
7600
2450
Discount
allowed
Scooty
Carriage charges
Sundry creditors
Bills payable
800
1750
700
7250
690

Journal entries of all the transactions
Conclusion
6
4
10
3
From the given trial balance draft an Adjusted Trial Balance.
Trial Balance as on 31.03.2011
Debit balances Rs. Credit balances Rs.
Furniture and Fittings 10000 Bank Over Draft 16000
Buildings 500000 Capital Account 400000
Sales Returns 1000 Purchase Returns 4000
Bad Debts 2000 Sundry Creditors 30000
Sundry Debtors 25000 Commission 5000
Purchases 90000 Sales 235000
Advertising 20000
Cash 10000
Taxes and Insurance 5000
General Expenses 7000
Salaries 20000
TOTAL 690000 TOTAL 690000
Adjustments:
1. Charge depreciation at 10% on Buildings and Furniture and fittings.
2. Write off further bad debts 1000
3. Taxes and Insurance prepaid 2000
4. Outstanding salaries 5000
5. Commission received in advance1000

Preparation of ledger accounts
Preparation of trial balance
6
4
10
4
Compute trend ratios and comment on the financial performance of I nfosys
Technologies Ltd. from the following extract of its income statements of five years.


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(in Rs. Crore)
Particulars 2010-11 2009-10 2008-09 2007-08 2006-07
Revenue 27,501 22,742 21,693 16,692 13,893
Operating Profit
(PBIDT)
8,968 7,861 7,195 5,238 4,391
PAT from
ordinary activities
6,835 6,218 5,988 4,659 3,856
(Source: I nfosys Technologies Ltd. Annual Report)
Preparation of trend analysis
Preparation of trend ratios
Conclusion

4
4
2

10
5 Give the meaning of cash flow analysis and put down the objectives of cash flow
analysis. Explain the preparation of cash flow statement.
Meaning of cash flow analysis
Objectives of cash flow analysis
Explanation of preparation of cash flow analysis
2
3
5
10
6 Write the assumptions of marginal costing. Differentiate between absorption costing
and marginal costing.
Assumptions of marginal costing (all 7 points)
Differences of marginal and absorption costing (Includes all 8
points)
4
6

10



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