Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2019 Summer 1st Sem 3519201 Accounting For Managers Afm Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 1 ? EXAMINATION ? SUMMER 2019
Subject Code: 3519201 Date: 14/05/2019
Subject Name: ACCOUNTING FOR MANAGERS (AFM)
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.
Q.1 Explain the following terms in brief:
(a) Functions of Accounting
(b) Accounting process
(c) Qualitative characteristics of financial statements
(d) Computerized Accounting
(e) Fundamental accounting assumptions
(f) Rules of Real account & Nominal account.
(g) Users of Financial Statement
14
Q.2 (a)
Differentiate between Financial Accounting and Management
Accounting.
07
(b) Journalize the below entries in the books of Rajini.
January 2018
1
st
Rajini started business with a capital of Rs. 50,000
2
nd
She purchased furniture for Rs. 5,000
3
rd
She bought goods on credit from Vinod for Rs. 8,000
14
th
She sold goods to Suresh for Rs. 5,000
15
th
She received cash from Suresh Rs. 3,000
18
th
She purchased goods for cash Rs. 12,000
25
th
She sold goods for cash Rs. 8,000
28
th
She paid rent Rs. 1,200.
31
st
She paid Vinod Rs. 3,000 on account.
07
OR
(b)
Using the following data complete the balance sheet.
Gross profit (20% of sales) Rs. 60000
Share capital Rs. 50000
Credit sales to total sales 80%
Total assets turnover (on sales) 3 times
Closing stock turnover (to cost of sales) 8 times
Average collection period (for 360 days) 18 days
Current ratio 1.6
Long term debt to equity 40%
Balance Sheet
Share capital ? Fixed assets ?
Long term debt ? Stock ?
Creditors ? Debtors ?
Cash ?
? ?
07
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Page 1 of 4
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 1 ? EXAMINATION ? SUMMER 2019
Subject Code: 3519201 Date: 14/05/2019
Subject Name: ACCOUNTING FOR MANAGERS (AFM)
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.
Q.1 Explain the following terms in brief:
(a) Functions of Accounting
(b) Accounting process
(c) Qualitative characteristics of financial statements
(d) Computerized Accounting
(e) Fundamental accounting assumptions
(f) Rules of Real account & Nominal account.
(g) Users of Financial Statement
14
Q.2 (a)
Differentiate between Financial Accounting and Management
Accounting.
07
(b) Journalize the below entries in the books of Rajini.
January 2018
1
st
Rajini started business with a capital of Rs. 50,000
2
nd
She purchased furniture for Rs. 5,000
3
rd
She bought goods on credit from Vinod for Rs. 8,000
14
th
She sold goods to Suresh for Rs. 5,000
15
th
She received cash from Suresh Rs. 3,000
18
th
She purchased goods for cash Rs. 12,000
25
th
She sold goods for cash Rs. 8,000
28
th
She paid rent Rs. 1,200.
31
st
She paid Vinod Rs. 3,000 on account.
07
OR
(b)
Using the following data complete the balance sheet.
Gross profit (20% of sales) Rs. 60000
Share capital Rs. 50000
Credit sales to total sales 80%
Total assets turnover (on sales) 3 times
Closing stock turnover (to cost of sales) 8 times
Average collection period (for 360 days) 18 days
Current ratio 1.6
Long term debt to equity 40%
Balance Sheet
Share capital ? Fixed assets ?
Long term debt ? Stock ?
Creditors ? Debtors ?
Cash ?
? ?
07
Page 2 of 4
Q.3 (a) Explain the conceptual framework of financial statements in detail? 07
(b) The following is the record of receipts and issues of material A in the factory
during a week.
April 2018
1 Opening balance 50 tonnes @ Rs. 10 per tone
2 Issued 30 tonnes
3 Received 60 tonnes @ Rs. 10.20 per tone
4 Issued 25 tonnes [Stock verification reveals of loss of 1 tonne]
5 Received back 10 tonnes [Previously issued at Rs. 9.15 per tone]
6 Issued 40 tonnes
7 Received 22 tonnes @ Rs. 10.30 per tone
8 Issued 38 tonnes
You are required to prepare a Stores ledger account under
i) FIFO method
ii) LIFO method.
07
OR
Q.3 (a) What do you mean by Accounting concepts? Explain any 5 accounting concepts
in detail.
07
(b) On 1-1-2010, Ram purchased machinery of 72,000 and spent 6,000 for
Installation and 12,000 for repairs.
On 30-6-2012, he sold a part of the machinery costing Rs. 18,000 for Rs.
12,000. New machinery was purchased on the same day for Rs. 30,000 and
spent Rs. 6,000 for transportation.
The depreciation was charged at 10% per annum on the original cost method.
Show the machinery and depreciation account for 5 years.
07
Q.4 (a) Explain the concept of Trend Analysis with the help of an example. 07
(b) From the following Income Statement of Raj Trading Company for the year
ending 31st March, 2016 and 2017, you are required to prepare a Comparative
Income Statement and give your comments:
Income Statement
For the year ended 2016 and 2017
Particulars 31.03.2016
Rs.
31.03.2017
Rs.
Revenue From Operations 6,00,000 7,20,000
Add: Dividend Received 30.000 90,000
Total Revenue 6,30,000 8,10,000
Less: Cost of Goods Sold 4,20,000 5,60,000
Administration Expenses 50,000 66,000
Selling and Dist. Expenses 25,000 23,000
Interest on Debentures 12,000 12,000
Loss on Sale of Plant 6,000 4,000
Provision for Taxation 40,000 48,000
Net Profit 77,000 97,000
07
OR
Q.4 (a) Write a short note on IFRS? 07
(b) From the following Profit and Loss account, you are required to compute cash
from operations.
07
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Page 1 of 4
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 1 ? EXAMINATION ? SUMMER 2019
Subject Code: 3519201 Date: 14/05/2019
Subject Name: ACCOUNTING FOR MANAGERS (AFM)
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.
Q.1 Explain the following terms in brief:
(a) Functions of Accounting
(b) Accounting process
(c) Qualitative characteristics of financial statements
(d) Computerized Accounting
(e) Fundamental accounting assumptions
(f) Rules of Real account & Nominal account.
(g) Users of Financial Statement
14
Q.2 (a)
Differentiate between Financial Accounting and Management
Accounting.
07
(b) Journalize the below entries in the books of Rajini.
January 2018
1
st
Rajini started business with a capital of Rs. 50,000
2
nd
She purchased furniture for Rs. 5,000
3
rd
She bought goods on credit from Vinod for Rs. 8,000
14
th
She sold goods to Suresh for Rs. 5,000
15
th
She received cash from Suresh Rs. 3,000
18
th
She purchased goods for cash Rs. 12,000
25
th
She sold goods for cash Rs. 8,000
28
th
She paid rent Rs. 1,200.
31
st
She paid Vinod Rs. 3,000 on account.
07
OR
(b)
Using the following data complete the balance sheet.
Gross profit (20% of sales) Rs. 60000
Share capital Rs. 50000
Credit sales to total sales 80%
Total assets turnover (on sales) 3 times
Closing stock turnover (to cost of sales) 8 times
Average collection period (for 360 days) 18 days
Current ratio 1.6
Long term debt to equity 40%
Balance Sheet
Share capital ? Fixed assets ?
Long term debt ? Stock ?
Creditors ? Debtors ?
Cash ?
? ?
07
Page 2 of 4
Q.3 (a) Explain the conceptual framework of financial statements in detail? 07
(b) The following is the record of receipts and issues of material A in the factory
during a week.
April 2018
1 Opening balance 50 tonnes @ Rs. 10 per tone
2 Issued 30 tonnes
3 Received 60 tonnes @ Rs. 10.20 per tone
4 Issued 25 tonnes [Stock verification reveals of loss of 1 tonne]
5 Received back 10 tonnes [Previously issued at Rs. 9.15 per tone]
6 Issued 40 tonnes
7 Received 22 tonnes @ Rs. 10.30 per tone
8 Issued 38 tonnes
You are required to prepare a Stores ledger account under
i) FIFO method
ii) LIFO method.
07
OR
Q.3 (a) What do you mean by Accounting concepts? Explain any 5 accounting concepts
in detail.
07
(b) On 1-1-2010, Ram purchased machinery of 72,000 and spent 6,000 for
Installation and 12,000 for repairs.
On 30-6-2012, he sold a part of the machinery costing Rs. 18,000 for Rs.
12,000. New machinery was purchased on the same day for Rs. 30,000 and
spent Rs. 6,000 for transportation.
The depreciation was charged at 10% per annum on the original cost method.
Show the machinery and depreciation account for 5 years.
07
Q.4 (a) Explain the concept of Trend Analysis with the help of an example. 07
(b) From the following Income Statement of Raj Trading Company for the year
ending 31st March, 2016 and 2017, you are required to prepare a Comparative
Income Statement and give your comments:
Income Statement
For the year ended 2016 and 2017
Particulars 31.03.2016
Rs.
31.03.2017
Rs.
Revenue From Operations 6,00,000 7,20,000
Add: Dividend Received 30.000 90,000
Total Revenue 6,30,000 8,10,000
Less: Cost of Goods Sold 4,20,000 5,60,000
Administration Expenses 50,000 66,000
Selling and Dist. Expenses 25,000 23,000
Interest on Debentures 12,000 12,000
Loss on Sale of Plant 6,000 4,000
Provision for Taxation 40,000 48,000
Net Profit 77,000 97,000
07
OR
Q.4 (a) Write a short note on IFRS? 07
(b) From the following Profit and Loss account, you are required to compute cash
from operations.
07
Page 3 of 4
Profit and Loss account for the year ended 31-03-2018
Particulars Rs. Particulars Rs.
To Salaries 20000 By Gross profit 100000
To Rent 4000 By Profit on sale of
Land
20000
To Depreciation 8000 By Income tax refund 12000
To Loss on sale of
machinery
4000
To Goodwill written
off
16000
To Dividend proposed 20000
To Tax provision 20000
To Net profit 40000
132000 132000
Q.5
The following is the trial balance of Gupta Industries Ltd. for the year ending
31st March, 2018.
Particulars Debit Credit
Stock, 1
st
April 2017 675000
Sales 3060000
Wages 270000
Share capital (Authorised capital 200000
shares of Rs. 10 each)
900000
Discount 27000
Purchases 2205000
Carriage inward 8550
Purchase returns 90000
Patents & trademark 43200
Salaries 67500
Bills receivable 45000
Sundry expenses 63450
Bills payable 63000
Rent 36000
Debtors & Creditors 247500 157500
Plant & Machinery 261000
Furniture & Fittings 153000
Cash at bank 415800
General reserve 139500
Profit & loss account, 31
st
March 2017 54000
Total 4491000 4491000
Adjustments:
1. Outstanding rent amounted to Rs. 7200 while outstanding salaries Rs.
8100 at the end of the year.
2. Make a provision for doubtful debts amounting to Rs. 4590.
3. Stock on 31
st
March 2018 was valued at Rs. 792000.
4. Depreciate plant and machinery at 14% and furniture & fittings at 18%.
5. Amortise patents and trademarks at 5%.
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Page 1 of 4
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 1 ? EXAMINATION ? SUMMER 2019
Subject Code: 3519201 Date: 14/05/2019
Subject Name: ACCOUNTING FOR MANAGERS (AFM)
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.
Q.1 Explain the following terms in brief:
(a) Functions of Accounting
(b) Accounting process
(c) Qualitative characteristics of financial statements
(d) Computerized Accounting
(e) Fundamental accounting assumptions
(f) Rules of Real account & Nominal account.
(g) Users of Financial Statement
14
Q.2 (a)
Differentiate between Financial Accounting and Management
Accounting.
07
(b) Journalize the below entries in the books of Rajini.
January 2018
1
st
Rajini started business with a capital of Rs. 50,000
2
nd
She purchased furniture for Rs. 5,000
3
rd
She bought goods on credit from Vinod for Rs. 8,000
14
th
She sold goods to Suresh for Rs. 5,000
15
th
She received cash from Suresh Rs. 3,000
18
th
She purchased goods for cash Rs. 12,000
25
th
She sold goods for cash Rs. 8,000
28
th
She paid rent Rs. 1,200.
31
st
She paid Vinod Rs. 3,000 on account.
07
OR
(b)
Using the following data complete the balance sheet.
Gross profit (20% of sales) Rs. 60000
Share capital Rs. 50000
Credit sales to total sales 80%
Total assets turnover (on sales) 3 times
Closing stock turnover (to cost of sales) 8 times
Average collection period (for 360 days) 18 days
Current ratio 1.6
Long term debt to equity 40%
Balance Sheet
Share capital ? Fixed assets ?
Long term debt ? Stock ?
Creditors ? Debtors ?
Cash ?
? ?
07
Page 2 of 4
Q.3 (a) Explain the conceptual framework of financial statements in detail? 07
(b) The following is the record of receipts and issues of material A in the factory
during a week.
April 2018
1 Opening balance 50 tonnes @ Rs. 10 per tone
2 Issued 30 tonnes
3 Received 60 tonnes @ Rs. 10.20 per tone
4 Issued 25 tonnes [Stock verification reveals of loss of 1 tonne]
5 Received back 10 tonnes [Previously issued at Rs. 9.15 per tone]
6 Issued 40 tonnes
7 Received 22 tonnes @ Rs. 10.30 per tone
8 Issued 38 tonnes
You are required to prepare a Stores ledger account under
i) FIFO method
ii) LIFO method.
07
OR
Q.3 (a) What do you mean by Accounting concepts? Explain any 5 accounting concepts
in detail.
07
(b) On 1-1-2010, Ram purchased machinery of 72,000 and spent 6,000 for
Installation and 12,000 for repairs.
On 30-6-2012, he sold a part of the machinery costing Rs. 18,000 for Rs.
12,000. New machinery was purchased on the same day for Rs. 30,000 and
spent Rs. 6,000 for transportation.
The depreciation was charged at 10% per annum on the original cost method.
Show the machinery and depreciation account for 5 years.
07
Q.4 (a) Explain the concept of Trend Analysis with the help of an example. 07
(b) From the following Income Statement of Raj Trading Company for the year
ending 31st March, 2016 and 2017, you are required to prepare a Comparative
Income Statement and give your comments:
Income Statement
For the year ended 2016 and 2017
Particulars 31.03.2016
Rs.
31.03.2017
Rs.
Revenue From Operations 6,00,000 7,20,000
Add: Dividend Received 30.000 90,000
Total Revenue 6,30,000 8,10,000
Less: Cost of Goods Sold 4,20,000 5,60,000
Administration Expenses 50,000 66,000
Selling and Dist. Expenses 25,000 23,000
Interest on Debentures 12,000 12,000
Loss on Sale of Plant 6,000 4,000
Provision for Taxation 40,000 48,000
Net Profit 77,000 97,000
07
OR
Q.4 (a) Write a short note on IFRS? 07
(b) From the following Profit and Loss account, you are required to compute cash
from operations.
07
Page 3 of 4
Profit and Loss account for the year ended 31-03-2018
Particulars Rs. Particulars Rs.
To Salaries 20000 By Gross profit 100000
To Rent 4000 By Profit on sale of
Land
20000
To Depreciation 8000 By Income tax refund 12000
To Loss on sale of
machinery
4000
To Goodwill written
off
16000
To Dividend proposed 20000
To Tax provision 20000
To Net profit 40000
132000 132000
Q.5
The following is the trial balance of Gupta Industries Ltd. for the year ending
31st March, 2018.
Particulars Debit Credit
Stock, 1
st
April 2017 675000
Sales 3060000
Wages 270000
Share capital (Authorised capital 200000
shares of Rs. 10 each)
900000
Discount 27000
Purchases 2205000
Carriage inward 8550
Purchase returns 90000
Patents & trademark 43200
Salaries 67500
Bills receivable 45000
Sundry expenses 63450
Bills payable 63000
Rent 36000
Debtors & Creditors 247500 157500
Plant & Machinery 261000
Furniture & Fittings 153000
Cash at bank 415800
General reserve 139500
Profit & loss account, 31
st
March 2017 54000
Total 4491000 4491000
Adjustments:
1. Outstanding rent amounted to Rs. 7200 while outstanding salaries Rs.
8100 at the end of the year.
2. Make a provision for doubtful debts amounting to Rs. 4590.
3. Stock on 31
st
March 2018 was valued at Rs. 792000.
4. Depreciate plant and machinery at 14% and furniture & fittings at 18%.
5. Amortise patents and trademarks at 5%.
Page 4 of 4
(a)
6. Provide for managerial remuneration at 10% of the net profits before
tax.
7. Make a provision for income tax at 35%.
8. The board of directors proposes a dividend at 10% for the year ended
31
st
March 2018 after transfer to General reserve at 5% of profit after
tax.
Prepare Vertical Profit and Loss account for the year ending 31
st
March 2018.
07
(b) Prepare Vertical Balance sheet as on 31
st
March 2018. 07
OR
Q.5 (a) Prepare Horizontal Profit and Loss account of Gupta Industries Ltd. for the year
ending 31
st
March 2018.
07
(b) Prepare Horizontal Balance sheet of Gupta Industries Ltd. as on 31
st
March
2018.
07
*************
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This post was last modified on 19 February 2020