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Fall Drive 2011

Master of Business Administration - MBA Semester 1 Subject Code MB0041 Subject Name Financial and Management Accounting 4 Credits
(Book ID: B1130)

Assignment Set- 1 (60 Marks) Note: Each question carries 10 Marks. Answer all the questions.
Q.1 Assure you have just started a Mobile store. You sell mobile sets and currencies of Airtel, Vodaphone, Reliance and BSNL. Take five transactions and prepare a position statement after every transaction. Did you firm earn profit or incurred loss at the end? Make a small comment on your financial position at the end. [10 Marks]

Q.2a. List the accounting standards issued by ICAI. [5 Marks] 2b. Write short notes of IFRS. [5 Marks] Q.3 Prepare a Three-column Cash Book of M/s Thuglak & Co. from The following particulars: [10 Marks] 20X1 Jan 1. Cash in hand Rs. 50,000, Bank Overdraft Rs. 20,000 2. Paid into bank Rs. 10,000 3. Bought goods from Hari for Rs, 200 for each 4. Bought goods for Rs. 2,000 paid cheque for them, discount allowed 1% 5. Sold goods to Mohan for each Rs. 1.175 6. Received a cheque from Shyam to whom goods were sold for Rs. 800.Discount allowed 12.5% 7. Shyams cheque deposited into bank 8. Purchased an old typewriter for Rs. 200 , Spent Rs. 50 on its repairs 9. Bank notified that Shyams cheque has been returned dishonored and debited the account in respect of charges Rs. 10 10. Received a money order Rs. 25 from Hari 11. Shyam settled his account by means of a cheque for Rs. 820, Rs. 20 being for interest charged. 12. Withdrew from the bank Rs. 10,000 18. Discounted a B/E for Rs. 1,000 at 1% through bank 20. Honored our own acceptance by cheque Rs. 5,000 22. Withdrew fir personal use Rs. 1,000 24. Paid tread expenses Rs. 2,000 25. Withdrew from bank for private expenses Rs. 1,500

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26. Purchased machinery from Rajiv for 5,000 and paid him by means of a bank draft purchased for Rs. 5,005 27. Issued cheque to Ram Saran for cash purchased of furniture Rs. 1,575 28. Received a cheque for commission Rs. 500 from R.& Co. and deposited into bank 29. Ramesh who owned us Rs. 500 became bankrupt and paid us 50 paise in the rupee 30. Received payment of a loan of Rs. 5,000 and deposited Rs. 3,000 out of into bank 31. Paid rent to landlord Mohan by cheque of Rs. 220 31. Interest allowed by bank Rs. 30 31. Half-yearly bank charges Rs. 50 Q.4 Choose an Indian Company of your choice that has adopted Balance Score Card and detail on it. [10 Marks] Q.5 From the following data of Jagdish Company prepare (a) a statement of source and uses of working capital (funds) (b) a schedule of changes in working capital Assets Cash Short-term investment Debtors Stock Long term Investment Machinery Building Land Total Liabilities and Equity Accumulated depreciation Creditors Bills Payable Secured loans Share capital Share premium Reserves and surplus Total 2008 1,26,000 42,400 60,000 38,000 28,000 2,00,000 2,40,000 14,000 7,48,400 1,10,000 40,000 20,000 2,00,000 2,20,000 24,000 1,34,400 7,48,400 Income statement Sales Cost of goods sold Gross Profit Less Operating expenses: Depreciation machinery 2,40,000 1,34,600 1,05,200 20,000 2007 1,14,000 20,000 50,000 28,000 44,000 1,40,000 80,000 14,000 4,90,000 60,000 30,000 10,000 1,00,000 1,60,000 Nil 1,30,000 4,90,000

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Depreciation building Other expenses Net profit from operation

32,000 40,000

92,000 13,200 4,800 18,000 2,000 16,000

Gain on sale on long-term investment Total Loss on sale of machinery Net Profit

Adjustments: 1) Machinery worth Rs.70000 was purchased and worth Rs.10000 was sold during the year [Accumulated depreciation on machinery is Rs.18000 after adjusting depreciation on machinery sold]. Proceeds from the sale of machinery were Rs.6000 2) Dividends paid during the year Rs.11600 [ 10 Marks] Q.6 What is a cash budget? How it is useful in managerial decision making? [10 Marks]

Master of Business Administration - MBA Semester 1 Subject Code MB0041 Subject Name Financial and Management Accounting 4 Credits
(Book ID: B1130)

Assignment Set- 2 (60 Marks) Note: Each question carries 10 Marks. Answer all the questions.
Q.1 Selected financial information about Vijay merchant company is given below: 2010 Sales Cost of Goods Sold 69,000 57,000 2009 43,000 32,500

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Debtors Inventories Cash Other current assets Current liabilities

7,200 11,400 1,500 4,000 16,000

3,000 5,500 800 2,700 11,000

Compute the current ratio, quick ratio, average debt collection period and inventory turnover for 2009 and 2010. State whether there is a favorable or unfavorable change in liquidity from 2009 to 2010. At the beginning of 2009, the company had debtors of Rs..2500 and inventory of Rs.3000. [10 Marks]

Q.2

Explain different methods of costing. Your answer should be studded with

examples (preferably firm name and product) for each method of costing. [10 Marks] Q.3 State the importance of differentiating between the fixed costs and variable [10 Marks]

costs in managerial decision. Q.4 2009 Name of the account Sundry debtors Bad debts Additional Information Dr 2,05,000 3,000 Cr

Following are the extracts from the trial balance of a firm as at 31st March

1) After preparing the trial balance, it is learnt that Mr.X a debtor has become insolvent and nothing could be recoverd from him and, therefore the entire amount of Rs.5,000 due from him was irrecoverable. 2) Create 10% provision for doubtful debt. Required: Pass the necessary journal entries and show the sundry debtors account, bad debts account, provision for doubtful debts account, P&L a/c and Balance sheet as at 31st March 2009. [10 Marks]

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Q.5 A change in credit policy has caused an increase in sales, an increase in discounts taken, a decrease in the amount of bad debts, and a decrease in investment in accounts receivable. Based upon this information, the companys (select the best one and give reason) 1) Average collection period has decreased 2) Percentage discount offered has decreased 3) Accounts receivable turnover has decreased 4) Working Capital has increased. [10 Marks] Q.6 Identify the users of accounting information. [10 Marks]