Download VTU BE 2020 Jan ME Question Paper 15 Scheme 7th Sem 151E743 Financial Management

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Seventh Semester B.E. Degree Examination, Dec.2019/.1an.2020
Financial Management
Time: 3 hrs. Max. Marks: 80
Note: Answer any FIVE full questions, choosing ON E full question from each module.
Module-1

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I a. Define book keeping. Mention the three types of accounts with examples. (04 Marks)
b. Computer care Ltd. Provides the following transactions. You are required to prepare journal
entries and post entries in ledger on August
August Deposited Rs.40,000 in the Company's Bank account in exchange of 4000
1 shares

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2 Paid two months office rent in advance Rs.2200
3 Bought testing equipment on credit Rs.6500
4 Bought office supplies for cash, Rs.480
7 Received fees for services provided Rs.6900
13 Ordered testing equipment Rs.3200

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16 Paid assistants salaries for first fortnight Rs.2300
19 Billed customers for service provided Rs.9700
20 Received testing equipment ordered on Aug 13, agreed to pay it on Sept 5
28 Paid telephone bill for the month Rs.390
29 Received cash for services to be provided later Rs.2700

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30 Paid assistants salaries for second fortnight Rs.2300
(12 Marks)
OR
2 a. Explain in detail forms of organization. (10 Marks)
b. Define the terms: i) Excise duty ii) Central sales tax iii) VAT iv) Service tax

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v) Direct ax vi) Indirect tax (06 Marks)
Module-2
3 a. Explain the factors intluencing the working capital requirement. (06 Marks)
b. From the following data compute the duration of the operating cycle for each of the two
years and commei

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Particulars Years 1 (Rs) Year 2 (Rs)
Stocks
Raw Material 20000 27000
Work in progress 14000 18000
Finished goods 21000 24000

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Purchase of Raw material 96000 135000
Cost of goods sold 140000 180000
Sales 160000 200000
Debtors 32000 50000
Creditors 16000 18000

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Assume 360 days/year for operating cycle. (10 Marks)
1 of 3
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Seventh Semester B.E. Degree Examination, Dec.2019/.1an.2020
Financial Management

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Time: 3 hrs. Max. Marks: 80
Note: Answer any FIVE full questions, choosing ON E full question from each module.
Module-1
I a. Define book keeping. Mention the three types of accounts with examples. (04 Marks)
b. Computer care Ltd. Provides the following transactions. You are required to prepare journal

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entries and post entries in ledger on August
August Deposited Rs.40,000 in the Company's Bank account in exchange of 4000
1 shares
2 Paid two months office rent in advance Rs.2200
3 Bought testing equipment on credit Rs.6500

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4 Bought office supplies for cash, Rs.480
7 Received fees for services provided Rs.6900
13 Ordered testing equipment Rs.3200
16 Paid assistants salaries for first fortnight Rs.2300
19 Billed customers for service provided Rs.9700

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20 Received testing equipment ordered on Aug 13, agreed to pay it on Sept 5
28 Paid telephone bill for the month Rs.390
29 Received cash for services to be provided later Rs.2700
30 Paid assistants salaries for second fortnight Rs.2300
(12 Marks)

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OR
2 a. Explain in detail forms of organization. (10 Marks)
b. Define the terms: i) Excise duty ii) Central sales tax iii) VAT iv) Service tax
v) Direct ax vi) Indirect tax (06 Marks)
Module-2

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3 a. Explain the factors intluencing the working capital requirement. (06 Marks)
b. From the following data compute the duration of the operating cycle for each of the two
years and commei
Particulars Years 1 (Rs) Year 2 (Rs)
Stocks

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Raw Material 20000 27000
Work in progress 14000 18000
Finished goods 21000 24000
Purchase of Raw material 96000 135000
Cost of goods sold 140000 180000

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Sales 160000 200000
Debtors 32000 50000
Creditors 16000 18000
Assume 360 days/year for operating cycle. (10 Marks)
1 of 3

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1 \
OR
4 a. Explain the need for long term financing. (06 Mar
b. Discuss various sources of long-term finance of Indian companies. (10 Marks,
Module-3

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5 a. Explain the process of capital budgeting in detail. (10 Marks)
b. Discuss briefly the factors which affects investments decisions. (06 Marks)
OR
6 Write a note on: i) Current Asset Management ii) Wealth Management. (16 Marks)
Module-4

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7 a. What do you mean by risks in financial decision state different types of risks is financial
decision. (06 Marks)
b. The following table gives dividend and share price data for Hind manufacturing company:
Year Dividend/share Closing share/price
12.25 1994 2.5

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1995 2.5 14.2
1996 2.5 17.5
1997 3 16.75
1998 3 18.45
1999 3.25 22.45

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2000 3.5 23.5
2001 3.5 27.75
200
1
3.5 25.5

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2003 3.75 27.95
2004 3.75 31.30
Determine:
i) Annual rate of return
ii) Expected average rate of return

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iii) Variance
iv) Standard deviation of return
OR
8 a. From the following information prepare balance sheet of X. Co. Ltd.
i) Current ratio 2.5:1

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ii) Liquid ratio 1.75:1
iii) Proprietary ratio 0.8:1 [fixed assets/proprietary funds)
iv) Working capital Rs 1,20,000
v) Reserves and surplus Rs 30,000
vi) Debtors and cash are in the ratio of 3:2

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vii) Creditors and bills payable are in the ratio 4:1
There was no other current or long term liability.
b. Define the following terms:
i) Current ratio
ii) Inventory turnover ratio

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iii) Gross profit ratio
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iv) Debt-equity ratio

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v) Solvency ratio
vi) Debtors turnover ratio.
,.;
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N s.
(10 Marks)
(10 Marks)

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(06 Marks)
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Seventh Semester B.E. Degree Examination, Dec.2019/.1an.2020
Financial Management
Time: 3 hrs. Max. Marks: 80

--- Content provided by​ FirstRanker.com ---

Note: Answer any FIVE full questions, choosing ON E full question from each module.
Module-1
I a. Define book keeping. Mention the three types of accounts with examples. (04 Marks)
b. Computer care Ltd. Provides the following transactions. You are required to prepare journal
entries and post entries in ledger on August

--- Content provided by⁠ FirstRanker.com ---

August Deposited Rs.40,000 in the Company's Bank account in exchange of 4000
1 shares
2 Paid two months office rent in advance Rs.2200
3 Bought testing equipment on credit Rs.6500
4 Bought office supplies for cash, Rs.480

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7 Received fees for services provided Rs.6900
13 Ordered testing equipment Rs.3200
16 Paid assistants salaries for first fortnight Rs.2300
19 Billed customers for service provided Rs.9700
20 Received testing equipment ordered on Aug 13, agreed to pay it on Sept 5

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28 Paid telephone bill for the month Rs.390
29 Received cash for services to be provided later Rs.2700
30 Paid assistants salaries for second fortnight Rs.2300
(12 Marks)
OR

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2 a. Explain in detail forms of organization. (10 Marks)
b. Define the terms: i) Excise duty ii) Central sales tax iii) VAT iv) Service tax
v) Direct ax vi) Indirect tax (06 Marks)
Module-2
3 a. Explain the factors intluencing the working capital requirement. (06 Marks)

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b. From the following data compute the duration of the operating cycle for each of the two
years and commei
Particulars Years 1 (Rs) Year 2 (Rs)
Stocks
Raw Material 20000 27000

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Work in progress 14000 18000
Finished goods 21000 24000
Purchase of Raw material 96000 135000
Cost of goods sold 140000 180000
Sales 160000 200000

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Debtors 32000 50000
Creditors 16000 18000
Assume 360 days/year for operating cycle. (10 Marks)
1 of 3
1 \

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OR
4 a. Explain the need for long term financing. (06 Mar
b. Discuss various sources of long-term finance of Indian companies. (10 Marks,
Module-3
5 a. Explain the process of capital budgeting in detail. (10 Marks)

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b. Discuss briefly the factors which affects investments decisions. (06 Marks)
OR
6 Write a note on: i) Current Asset Management ii) Wealth Management. (16 Marks)
Module-4
7 a. What do you mean by risks in financial decision state different types of risks is financial

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decision. (06 Marks)
b. The following table gives dividend and share price data for Hind manufacturing company:
Year Dividend/share Closing share/price
12.25 1994 2.5
1995 2.5 14.2

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1996 2.5 17.5
1997 3 16.75
1998 3 18.45
1999 3.25 22.45
2000 3.5 23.5

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2001 3.5 27.75
200
1
3.5 25.5
2003 3.75 27.95

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2004 3.75 31.30
Determine:
i) Annual rate of return
ii) Expected average rate of return
iii) Variance

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iv) Standard deviation of return
OR
8 a. From the following information prepare balance sheet of X. Co. Ltd.
i) Current ratio 2.5:1
ii) Liquid ratio 1.75:1

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iii) Proprietary ratio 0.8:1 [fixed assets/proprietary funds)
iv) Working capital Rs 1,20,000
v) Reserves and surplus Rs 30,000
vi) Debtors and cash are in the ratio of 3:2
vii) Creditors and bills payable are in the ratio 4:1

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There was no other current or long term liability.
b. Define the following terms:
i) Current ratio
ii) Inventory turnover ratio
iii) Gross profit ratio

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iv) Debt-equity ratio
v) Solvency ratio

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vi) Debtors turnover ratio.
,.;
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N s.
(10 Marks)
(10 Marks)
(06 Marks)

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15ME743
IN hid ulc-.5
9 a. Differentiate between job costing and process costing.
b.
From the following data prepare a cost sheet and net profit for the given month:

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Raw material purchase 66000
Direct wages 52500
Stock of raw materials [1.9.18] 75000
Stock of raw materials [30.9.18] 91500
Stock of finished goods [ 1.9.18] 54000

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Stock of finished goods [30.9.18] 31000
Stock of work in progress [1.9.18] 28000
Stock of work in progress [30.9.18] 35000
Sales
211000

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Indirect wages 2750
Factory rent 15000
Depreciation on plant and machinery 3500
Direct expenses 1500
Sundry factory expense 10,000

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Salesman salary 6500
Office rent 2500
Sundry Office Expenses 6500
Advertisement 3500
Carriage outwards 2500

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OR
(06 Marks)
(10 Marks)
10 a.
Define the term 'Budget' and mention the advantages and disadvantages of budgeting.

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(06 Marks)
b. From the following forecast of income and expenses for half yearly ended with 30
th
June
2018 nrenare cost budget.

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Month Credit
sales
Credit
purchase
Wages Manufacturing

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expenses
Administrative
expenses
Sales and
distribution

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expenses
600
2017 Nov 25000 10000 2500 1100 1000
Dec 30000 15000 2800 1200 975 650
2018 Jan 20000 10000 2000 1250 1060 550

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Feb 25000 15000 2200 1150 1040 650
Mar 30000 17000 2400 1300 1105 750
April 35000 20000 2600 1350 1120 800
May 40000 22000 2800 1450 1180 825
June 45000 25000 3000 1500 1185 875

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i) Sales commission of 5% of total sales to be paid in two months
ii) Plant purchased on 1
4
Jan for Rs.10000 payment immediately
iii) New building purchased in Feb for R.80000 payable in two half yearly installments

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[First one is in Feb]
iv) Divided of Rs.5000 is paid in April
v) Period of credit allowed by debtors and creditors is 2 months.
vi) Lag in the payment of wages is 118
th

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of month.
vii) Lag in the payment of expenses is 1 month
viii) Cash balance on 1 Jan is Rs.37500
3 of 3
(10 Marks)

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