Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2019 Summer 1st Sem 1519301 International Accounting Practices Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (International Business) ? SEMESTER 1 ? EXAMINATION ? SUMMER 2019
Subject Code:1519301 Date:09/05/2019
Subject Name: International Accounting Practices
Time: 02:30 PM To 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Marks
Q.1 Explain the terms
(a) Steeped Fixed Cost
(b) Greenfield Investment
(c) Bad Debts
(d) Preproduction Cost
(e) XBRL
(f) Tax Haven
(g) Authorized Share Capital
14
Q.2 (a) Journalize following transactions in the Book of Mr. Poorash for the
month of March-2018
March -1 : He started business with Cash of 1,00,000, Stock of Goods of
50,000 and Furniture of 80,000.
March -5 : Taken a loan from a friend Chanakya of 50,000.
March -10 : Purchased goods of 50,000 from Sikandar at 12% trade
discount
March-15 : Sold goods to Rashi of 50,000.
March-17 : Purchased goods of 40,000 from Bharat Ltd. at a trade
discount of 10% and cash discount of 5% and paid half the amount by
cheque.
March -25 : Paid 42,500 cash to Sikandar to settle his account. And
Necessary cash was paid to Bharat Ltd. after deducting discount of 500 to
settle the account.
07
(b) Briefly discuss the scope and importance of International Accounting. 07
OR
(b) Explain Separate Entity Concept and Going Concern Concept with
appropriate Examples.
07
Q.3 (a) What do you understand by Tax Neutrality and Tax Equity. Explain the
forms of Tax Neutrality in brief.
07
(b)
The following information from the Accounts of M/S Mafatlal and Sons is
provided.
Particular Sales (in ) Profit (in )
Year 2011 1,20,000 8,000
Year 2012 1,40,000 13,000
Find out:
1. Profit Volume Ratio; 2. Bread Even Point; 3. Profit when sales are 1,80,000
4. Sales required to earn a Profit of 12,000
07
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Page 1 of 4
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (International Business) ? SEMESTER 1 ? EXAMINATION ? SUMMER 2019
Subject Code:1519301 Date:09/05/2019
Subject Name: International Accounting Practices
Time: 02:30 PM To 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Marks
Q.1 Explain the terms
(a) Steeped Fixed Cost
(b) Greenfield Investment
(c) Bad Debts
(d) Preproduction Cost
(e) XBRL
(f) Tax Haven
(g) Authorized Share Capital
14
Q.2 (a) Journalize following transactions in the Book of Mr. Poorash for the
month of March-2018
March -1 : He started business with Cash of 1,00,000, Stock of Goods of
50,000 and Furniture of 80,000.
March -5 : Taken a loan from a friend Chanakya of 50,000.
March -10 : Purchased goods of 50,000 from Sikandar at 12% trade
discount
March-15 : Sold goods to Rashi of 50,000.
March-17 : Purchased goods of 40,000 from Bharat Ltd. at a trade
discount of 10% and cash discount of 5% and paid half the amount by
cheque.
March -25 : Paid 42,500 cash to Sikandar to settle his account. And
Necessary cash was paid to Bharat Ltd. after deducting discount of 500 to
settle the account.
07
(b) Briefly discuss the scope and importance of International Accounting. 07
OR
(b) Explain Separate Entity Concept and Going Concern Concept with
appropriate Examples.
07
Q.3 (a) What do you understand by Tax Neutrality and Tax Equity. Explain the
forms of Tax Neutrality in brief.
07
(b)
The following information from the Accounts of M/S Mafatlal and Sons is
provided.
Particular Sales (in ) Profit (in )
Year 2011 1,20,000 8,000
Year 2012 1,40,000 13,000
Find out:
1. Profit Volume Ratio; 2. Bread Even Point; 3. Profit when sales are 1,80,000
4. Sales required to earn a Profit of 12,000
07
Page 2 of 4
OR
Q.3 (a) Differentiate Financial Accounting and Cost Accounting
07
(b) From the following annual account of New Horizon Limited you are
required to calculate the following ratios and comment on the result.
1. Gross Profit Ratio 2. Net Profit Ratio
3. Debt Collection Period 4. Current Ratio
Balance Sheet as on 31
st
March, 2018
Amount in ?000
Share Capital 450
Retained Earnings 240
Total (A) 690
12% Debenture 700
Trade Creditors 620
Proposed Dividend 45
Total (B) 1365
Total (A + B) 2055
Fixed Assets (Net of Depreciation) 875
Stocks 310
Debtors 770
Bank Balance 100
Total 2055
Extracts from year?s Profit & Loss Account:
Amount in
Sales for the year 31,00,000
Gross Profit 17,25,000
Expenses 8,05,000
Depreciation 2,50,000
07
Q.4
(a) Apple International Ltd. is manufacturing a product which passes through
two process i.e. P-1 and P-2. The following information is obtained from
the accounts for the week ending 31
st
October, 2015:
Items P-1 P-2
Direct Material (In ) 26,000 19,800
Direct Wages (In ) 20,000 30,000
Output (in Units) 9,500 8,400
Production overhead are 100% of Direct Wages
10,000 units at 3 each were introduced to P-I. There was no stock of
material or work-in-progress at the beginning or at the end of the period.
The output of each process passes direct to the next process and finally to
finished stock. The following additional data are obtained:
Process Normal loss Value Per Unit
P-I 5% 2
P-II 10% 4
Prepare Process Accounts along with Abnormal Gain / Loss Accounts.
07
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Page 1 of 4
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (International Business) ? SEMESTER 1 ? EXAMINATION ? SUMMER 2019
Subject Code:1519301 Date:09/05/2019
Subject Name: International Accounting Practices
Time: 02:30 PM To 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Marks
Q.1 Explain the terms
(a) Steeped Fixed Cost
(b) Greenfield Investment
(c) Bad Debts
(d) Preproduction Cost
(e) XBRL
(f) Tax Haven
(g) Authorized Share Capital
14
Q.2 (a) Journalize following transactions in the Book of Mr. Poorash for the
month of March-2018
March -1 : He started business with Cash of 1,00,000, Stock of Goods of
50,000 and Furniture of 80,000.
March -5 : Taken a loan from a friend Chanakya of 50,000.
March -10 : Purchased goods of 50,000 from Sikandar at 12% trade
discount
March-15 : Sold goods to Rashi of 50,000.
March-17 : Purchased goods of 40,000 from Bharat Ltd. at a trade
discount of 10% and cash discount of 5% and paid half the amount by
cheque.
March -25 : Paid 42,500 cash to Sikandar to settle his account. And
Necessary cash was paid to Bharat Ltd. after deducting discount of 500 to
settle the account.
07
(b) Briefly discuss the scope and importance of International Accounting. 07
OR
(b) Explain Separate Entity Concept and Going Concern Concept with
appropriate Examples.
07
Q.3 (a) What do you understand by Tax Neutrality and Tax Equity. Explain the
forms of Tax Neutrality in brief.
07
(b)
The following information from the Accounts of M/S Mafatlal and Sons is
provided.
Particular Sales (in ) Profit (in )
Year 2011 1,20,000 8,000
Year 2012 1,40,000 13,000
Find out:
1. Profit Volume Ratio; 2. Bread Even Point; 3. Profit when sales are 1,80,000
4. Sales required to earn a Profit of 12,000
07
Page 2 of 4
OR
Q.3 (a) Differentiate Financial Accounting and Cost Accounting
07
(b) From the following annual account of New Horizon Limited you are
required to calculate the following ratios and comment on the result.
1. Gross Profit Ratio 2. Net Profit Ratio
3. Debt Collection Period 4. Current Ratio
Balance Sheet as on 31
st
March, 2018
Amount in ?000
Share Capital 450
Retained Earnings 240
Total (A) 690
12% Debenture 700
Trade Creditors 620
Proposed Dividend 45
Total (B) 1365
Total (A + B) 2055
Fixed Assets (Net of Depreciation) 875
Stocks 310
Debtors 770
Bank Balance 100
Total 2055
Extracts from year?s Profit & Loss Account:
Amount in
Sales for the year 31,00,000
Gross Profit 17,25,000
Expenses 8,05,000
Depreciation 2,50,000
07
Q.4
(a) Apple International Ltd. is manufacturing a product which passes through
two process i.e. P-1 and P-2. The following information is obtained from
the accounts for the week ending 31
st
October, 2015:
Items P-1 P-2
Direct Material (In ) 26,000 19,800
Direct Wages (In ) 20,000 30,000
Output (in Units) 9,500 8,400
Production overhead are 100% of Direct Wages
10,000 units at 3 each were introduced to P-I. There was no stock of
material or work-in-progress at the beginning or at the end of the period.
The output of each process passes direct to the next process and finally to
finished stock. The following additional data are obtained:
Process Normal loss Value Per Unit
P-I 5% 2
P-II 10% 4
Prepare Process Accounts along with Abnormal Gain / Loss Accounts.
07
Page 3 of 4
Q-4
(b)
The following particulars are obtained from the books of M/S Prerna
& Co. for the year 2016.
Particular Amount
Direct Materials 15,00,000
Direct Wages 8,00,000
Works Overheads 10,00,000
Office Overheads 3,00,000
Selling Overheads 4,00,000
Sales 45,00,000
Workout the price the company should quote for a product in the year 2017,
which is estimated will require an expenditure of 2,00,000 in Direct
Materials and 1,60,000 in Direct Wages. (Office and Selling overheads
are based on works cost, whereas the works overheads are based on the
direct wages.)
Prepare the cost sheet for the year 2016 and tender cost sheet for the year
2017 showing the price at which the units will be sold so as to earn the same
rate of profit on cost as in the year 2016.
07
OR
Q.4
A company expects to have 37,500 cash in hand on 1
st
April, and
requires to prepare an estimate of cash position during the three months i.e.
April to June. The following information is supplied.
(Amount in )
Month Sales Purchase
s
Wages Factory
Expenses
Office
Expenses
Selling
Expenses
February 75,000 45,000 9,000 7,500 6,000 4,500
March 84,000 48,000 9,750 8,250 6,000 4,500
April 90,000 52,500 10,500 9,000 6,000 5,250
May 1,20,000 60,000 13,500 11,250 6,000 6,570
June 1,35,000 60,000 14,250 14,000 7,000 7,000
Other information:
1. Period of Credit allowed by suppliers are 2 months
2. 20% of sales are for cash and period of credit allowed to customers for
credit is one month
3. Delay in payment of all expenses is 1 month
4. Income tax of 57,500 is due to be paid on June 15
th
.
5. The company is to pay dividends to shareholders and bonus to workers of
15,000 and 22,500 respectively in the month of April.
6. Plant has been ordered to be received and paid in May. It will cost
1,20,000.
14
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Page 1 of 4
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (International Business) ? SEMESTER 1 ? EXAMINATION ? SUMMER 2019
Subject Code:1519301 Date:09/05/2019
Subject Name: International Accounting Practices
Time: 02:30 PM To 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Marks
Q.1 Explain the terms
(a) Steeped Fixed Cost
(b) Greenfield Investment
(c) Bad Debts
(d) Preproduction Cost
(e) XBRL
(f) Tax Haven
(g) Authorized Share Capital
14
Q.2 (a) Journalize following transactions in the Book of Mr. Poorash for the
month of March-2018
March -1 : He started business with Cash of 1,00,000, Stock of Goods of
50,000 and Furniture of 80,000.
March -5 : Taken a loan from a friend Chanakya of 50,000.
March -10 : Purchased goods of 50,000 from Sikandar at 12% trade
discount
March-15 : Sold goods to Rashi of 50,000.
March-17 : Purchased goods of 40,000 from Bharat Ltd. at a trade
discount of 10% and cash discount of 5% and paid half the amount by
cheque.
March -25 : Paid 42,500 cash to Sikandar to settle his account. And
Necessary cash was paid to Bharat Ltd. after deducting discount of 500 to
settle the account.
07
(b) Briefly discuss the scope and importance of International Accounting. 07
OR
(b) Explain Separate Entity Concept and Going Concern Concept with
appropriate Examples.
07
Q.3 (a) What do you understand by Tax Neutrality and Tax Equity. Explain the
forms of Tax Neutrality in brief.
07
(b)
The following information from the Accounts of M/S Mafatlal and Sons is
provided.
Particular Sales (in ) Profit (in )
Year 2011 1,20,000 8,000
Year 2012 1,40,000 13,000
Find out:
1. Profit Volume Ratio; 2. Bread Even Point; 3. Profit when sales are 1,80,000
4. Sales required to earn a Profit of 12,000
07
Page 2 of 4
OR
Q.3 (a) Differentiate Financial Accounting and Cost Accounting
07
(b) From the following annual account of New Horizon Limited you are
required to calculate the following ratios and comment on the result.
1. Gross Profit Ratio 2. Net Profit Ratio
3. Debt Collection Period 4. Current Ratio
Balance Sheet as on 31
st
March, 2018
Amount in ?000
Share Capital 450
Retained Earnings 240
Total (A) 690
12% Debenture 700
Trade Creditors 620
Proposed Dividend 45
Total (B) 1365
Total (A + B) 2055
Fixed Assets (Net of Depreciation) 875
Stocks 310
Debtors 770
Bank Balance 100
Total 2055
Extracts from year?s Profit & Loss Account:
Amount in
Sales for the year 31,00,000
Gross Profit 17,25,000
Expenses 8,05,000
Depreciation 2,50,000
07
Q.4
(a) Apple International Ltd. is manufacturing a product which passes through
two process i.e. P-1 and P-2. The following information is obtained from
the accounts for the week ending 31
st
October, 2015:
Items P-1 P-2
Direct Material (In ) 26,000 19,800
Direct Wages (In ) 20,000 30,000
Output (in Units) 9,500 8,400
Production overhead are 100% of Direct Wages
10,000 units at 3 each were introduced to P-I. There was no stock of
material or work-in-progress at the beginning or at the end of the period.
The output of each process passes direct to the next process and finally to
finished stock. The following additional data are obtained:
Process Normal loss Value Per Unit
P-I 5% 2
P-II 10% 4
Prepare Process Accounts along with Abnormal Gain / Loss Accounts.
07
Page 3 of 4
Q-4
(b)
The following particulars are obtained from the books of M/S Prerna
& Co. for the year 2016.
Particular Amount
Direct Materials 15,00,000
Direct Wages 8,00,000
Works Overheads 10,00,000
Office Overheads 3,00,000
Selling Overheads 4,00,000
Sales 45,00,000
Workout the price the company should quote for a product in the year 2017,
which is estimated will require an expenditure of 2,00,000 in Direct
Materials and 1,60,000 in Direct Wages. (Office and Selling overheads
are based on works cost, whereas the works overheads are based on the
direct wages.)
Prepare the cost sheet for the year 2016 and tender cost sheet for the year
2017 showing the price at which the units will be sold so as to earn the same
rate of profit on cost as in the year 2016.
07
OR
Q.4
A company expects to have 37,500 cash in hand on 1
st
April, and
requires to prepare an estimate of cash position during the three months i.e.
April to June. The following information is supplied.
(Amount in )
Month Sales Purchase
s
Wages Factory
Expenses
Office
Expenses
Selling
Expenses
February 75,000 45,000 9,000 7,500 6,000 4,500
March 84,000 48,000 9,750 8,250 6,000 4,500
April 90,000 52,500 10,500 9,000 6,000 5,250
May 1,20,000 60,000 13,500 11,250 6,000 6,570
June 1,35,000 60,000 14,250 14,000 7,000 7,000
Other information:
1. Period of Credit allowed by suppliers are 2 months
2. 20% of sales are for cash and period of credit allowed to customers for
credit is one month
3. Delay in payment of all expenses is 1 month
4. Income tax of 57,500 is due to be paid on June 15
th
.
5. The company is to pay dividends to shareholders and bonus to workers of
15,000 and 22,500 respectively in the month of April.
6. Plant has been ordered to be received and paid in May. It will cost
1,20,000.
14
Page 4 of 4
Q.5 The annual flexible budget of the Global Manufacturing company is as follows:
(Amount in )
Costs At 60% At 80% At 100%
Direct Material 90,000 1,20,000 1,50,000
Direct Wages 1,20,000 1,60,000 2,00,000
Factory Overheads 70,000 80,000 90,000
Administrative Overheads 30,000 35,000 40,000
Selling and Distribution Expenses 50,000 58,000 66,000
The company is presently working at 50% capacity. The sales value of production
at current prices is 3,20,000. It is anticipated that a 5% discount in the selling
price will enable the company to improve its competitive position, thereby
enabling it to operate at 75% capacity.
Prepare flexible budget for 50% and 75% capacity, find out profit and give your
recommendations to management.
14
OR
Q.5 The Trial Balance of Balaji Wafers Pvt. Ltd., Rajkot as on 31-3-2010 was as
under. Prepare Final Accounts as per companies Act.
Particular
Debit
Particular
Credit
Opening stock 40,000 Equity Share Capital 12,00,000
Purchases 16,60,000 12% Preference Share
Capital
3,00,000
Good Return 80,000 10% Redeemable Debenture 3,00,000
Land and building 10,00,000 Sales 31,00,000
Plant and machinery 6,00,000 Goods return 60,000
Debtors 4,00,000 creditors 1,00,000
Octroi 1,80,000 Loan of director 40,000
Selling and distribution exp. 40,000 Interest of investment 16,000
Carriage outward 16,000 Staff pension fund 16,000
Wages 6,80,000 Bills payable 20,000
Administrative exp. 1,70,000 Fixed deposit 48,000
Vehicles 1,20,000 General reserve 1,40,000
Telephone deposit 20,000 Share forfeiture a/c. 20,000
Director?s fees 20,000 Profit and loss a/c (1-4-2009) 1,60,000
Interest on debenture 12,000
Investments 3,00,000
Discount on debenture 80,000
Loose tools 12,000
Bills receivable 40,000
Cash and bank 50,000
Total 55,20,000 Total 55,20,000
Additional Information:
(1) Authorised capital of the company is 13,000 equity shares of 100 each and 12%
3000 preference shares of 100 each.
(2) Closing stock is valued at `1,80,000
(3) Depreciate Land and Building by 10%, Plant and Machinery by 20% and vehicles by
30%.
(4) Interest receivable on investments is `24,000.
(5) Provide bad debts reserve on debtors by 10%.
(6) Transfer `50,000 to general reserve.
(7) The director have proposed 10% dividend on Equity share capital.
14
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This post was last modified on 19 February 2020