Download JNTUA MBA R17 2019 Jan 1st Sem 14E00104 Financial Accounting for Managers Question Paper

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Code: 14E00104

MBA I Semester Supplementary Examinations December/January 2018/19

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FINANCIAL ACCOUNTING FOR MANAGERS

(For students admitted in 2014 (LC), 2015 & 2016 only)

Time: 3 hours

Max. Marks: 60

SECTION -A

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(Answer the following: (05 X 10 = 50 Marks)

1. What are the primary objectives of financial accounting? Explain.

   OR

   Discuss the main systems of recording business transactions.
2. Journalize the following transactions of Mr. Ramesh: 2013.
   April 1 Ramesh started business with cash Rs.10,000
   

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   April 2 paid into bank Rs.7,000
   April 3 bought goods for cash Rs.500
   April 4 drew cash from bank for office use Rs.100
   April 13 sold goods to Krishna on credit Rs.150
   April 20 bought goods from Shyam on credit Rs.225
   

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   April 24 received from Krishna Rs.145, allowed him discount Rs.5
   April 28 paid Shyam cash Rs.215, discount allowed Rs.10
   April 30 cash sales for the month Rs.800, rent paid Rs.50 and paid salary Rs.100

   OR

   The following balances were extracted from the books of Rajaram on 31-12-2012.
   

   	Rs		Rs
   Capital account	9,000	Purchase	15,000
   Furniture	800	Carriage outwards	200
   Creditors	1,600	Salaries	2,000
   Premises	13,000	Sales	18,000
   Bad debts	80	Rent received	800
   Cash	40	Discount allowed	180
   Drawings	900	Loan	4,000
   Overdraft at bank	905	Reserve for bad debts	100
   Debtors	1,500	Expenses	705

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3. Adjustments:
   (i) Make provision for bad debts @3%.
   (ii) Salary due Rs.200.
   (iii) Stock on 31-12-2012 Rs.3,500.
   (iv) Write off 10% from furniture for depreciation.
   

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   (v) Due from tenants rent Rs.100.
4. On 1st January 2011, X Ltd purchased a machine for Rs. 1,50,000 and on 1st July 2011 it acquired additional machinery at a cost of Rs. 40,000. On 1st April 2012, it sold the machinery purchased on 1st July 2011 for Rs. 32,500 and bought new machinery for Rs. 50,000. Depreciation is provided at a rate of 15% per annum using written down value method. Show the machinery account.

   OR

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5. The following transactions occur in the purchase and issue of a material:
   Jan 2 purchased 4,000 units Rs.4 per unit
   

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   Jan 20 purchased 500 units Rs.5 per unit
   Feb 5 issued 2,000 units
   Feb 10 purchased 6,000 units 6 per unit
   Feb 12 issued 4,000 units
   March 2 issued 1,000 units
   

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   March 5 issued 2,000 units
   March 15 purchased 4,500 units 5.50 per unit
   March 20 issued 3,000 units
   From the above, prepare the Stores Ledger Account using FIFO method.
6. Distinguish between funds flow statement and cash flow statement.

   OR

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   From the following balances you are required to calculate cash from operations:
   

   	31-12-2016	31-12-2017
   Debtors	50,000	47,000
   Bills receivables	10,000	12,500
   Creditors	20,000	25,000
   Bills payables	8,000	6,000
   Outstanding expenses	1,000	1,200
   Prepaid expenses	800	700
   Accrued income	600	750
   Income received in advance	300	250
   Profit made during the year	1,30,000

7. What are the uses and limitations of ratio analysis? Explain.

   OR

   Using the following information calculate
   (i) Sales.
   

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   (ii) Closing stock.
   (iii) Sundry debtors.
   (iv) Sundry creditors.
   Gross profit ratio: 25%
   Debtors turnover ratio 4 months
   

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   Stock turnover ratio 4 months
   Creditors turnover ratio 6 months
   Closing stock is Rs.10,000 more than the opening stock. Bills receivable amount Rs.65,000 and Bills payable to Rs.80,000, cost of goods sold for the year is Rs.9,00,000.

SECTION -B

(Compulsory question, 01 X 10 = 10 Marks)

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11. Case Study:
    From the following information prepare a summarized balance sheet as on 31st March 2013.
    Working capital Rs. 1,20,000
    Reserves& Surplus Rs. 80,000
    Bank overdraft Rs. 20,000
    

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    Assets(fixed) to proprietary ratio = 0.75
    Current ratio = 2.5
    Liquidity ratio = 1.5.