Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2019 Summer 1st Sem 2810001 Accounting For Managers Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 1? EXAMINATION ? SUMMER 2019
Subject Code:2810001 Date:14/05/2019
Subject Name: Accounting for Managers
Time: 02:30 PM 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.
Q1. (a) Identify the letter of the choice that best completes the statement or answers the
question
6
1. A person who supplies goods to the firm is known as
A A Debtor B A Creditor
C Proprietor D None of these
2. Investment is taken as
A Current Assets B Fixed Assets
C None of these D Both A and B
3. The animals used in the business is known as
A Current Assets B Dead-stock
C Livestock D Fictitious Assets
4. Insolvent means
A Assets=Liabilities B Assets>Liabilities
C Assets and Liabilities=0 D Assets
5. The amount which is irrecoverable from debtor is known as
A Doubtful Debt B Bad Debts
C Good Debt D None of these
6. An entrepreneur withdrawing goods or money for personal use is known as
A Capital B Expense
C Withdrawals D Drawings
Q1. (b) Explain the following terms:
1. Dead-stock
2. Intangible Asset
3. Authorized Share Capital
4. Preliminary Expenses
4
Q1. (c) 100 shares of Rs.500 each are purchased by Mr.X after paying brokerage of 2% and
Investment Advisor?s Fees of Rs.500. Find out the cost of investment.
4
Q2. (a) Write a short-note on Trend Analysis. Support it with imaginary figures. 7
Q2. (b) From the following data, identify the value of the closing stock and Cost of Goods
Sold under LIFO, FIFO and WAM as per periodic inventory system. Comment on
the value of the closing stock.
July 1 Inventory 100 units at Rs.8
July 8 Sale 90 units
July 15 Purchase 125 units at Rs.12
25 Sale 60 units
7
OR
Q2. (b) Write a short-note on AS-9 Recognition of Income. 7
Q3. (a) How is Accounting useful to different type of users? Elaborate the statement. 7
Q3. (b) Journalize the following the transactions:
1. Started business with cash Rs.1,00,000.
7
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Page 1 of 3
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 1? EXAMINATION ? SUMMER 2019
Subject Code:2810001 Date:14/05/2019
Subject Name: Accounting for Managers
Time: 02:30 PM 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.
Q1. (a) Identify the letter of the choice that best completes the statement or answers the
question
6
1. A person who supplies goods to the firm is known as
A A Debtor B A Creditor
C Proprietor D None of these
2. Investment is taken as
A Current Assets B Fixed Assets
C None of these D Both A and B
3. The animals used in the business is known as
A Current Assets B Dead-stock
C Livestock D Fictitious Assets
4. Insolvent means
A Assets=Liabilities B Assets>Liabilities
C Assets and Liabilities=0 D Assets
5. The amount which is irrecoverable from debtor is known as
A Doubtful Debt B Bad Debts
C Good Debt D None of these
6. An entrepreneur withdrawing goods or money for personal use is known as
A Capital B Expense
C Withdrawals D Drawings
Q1. (b) Explain the following terms:
1. Dead-stock
2. Intangible Asset
3. Authorized Share Capital
4. Preliminary Expenses
4
Q1. (c) 100 shares of Rs.500 each are purchased by Mr.X after paying brokerage of 2% and
Investment Advisor?s Fees of Rs.500. Find out the cost of investment.
4
Q2. (a) Write a short-note on Trend Analysis. Support it with imaginary figures. 7
Q2. (b) From the following data, identify the value of the closing stock and Cost of Goods
Sold under LIFO, FIFO and WAM as per periodic inventory system. Comment on
the value of the closing stock.
July 1 Inventory 100 units at Rs.8
July 8 Sale 90 units
July 15 Purchase 125 units at Rs.12
25 Sale 60 units
7
OR
Q2. (b) Write a short-note on AS-9 Recognition of Income. 7
Q3. (a) How is Accounting useful to different type of users? Elaborate the statement. 7
Q3. (b) Journalize the following the transactions:
1. Started business with cash Rs.1,00,000.
7
Page 2 of 3
2. Bought goods from Mr. Ram for Rs.80,000, 50% paid in cash.
3. Sold goods of Rs.25,000 to Ms.Rekha at 35% profit on Sales price.
4. Paid salary Rs.30,000 to Ms.Dipika.
5. Paid Rs.30,000 in full settlement to Ms. Tina towards her dues of
Rs.30,105.
6. Rent of Rs.3,000 is due but not received.
7. Paid Rs.1,001 in the wedding ceremony of maternal uncle?s son.
OR
Q3. (a) Write a short-note on Accounting Standard with reference to various levels of
categories of enterprises.
7
Q3. (b) Interpret the following ratios in the best possible manner. Both the companies are in
the same industry.
Type of Ratio Lincoln Company Abraham Company
Current Ratio 2.6:1 2.2:1
Quick Ratio 2.6:1 2.6:1
Debtors Turnover 12.7 times 9.2 times
Average Collection
Period
29 days 40days
Inventory Turnover 3.8 times 2.8 times
Interest Coverage Ratio 28.1 times 12.2 times
Rate earned on total
assets
8.2% 7.3%
7
Q4. (a) What is Generally Accepted Accounting Principles? Explain any four principles of
your choice with appropriate example.
7
Q4. (b) On 1
st
January, 2010 M/s. Joseph Limited purchased machinery for Rs.12,000 and
on 30
th
June, 2011, it acquired additional machinery at a cost of Rs.2,000. On 31
st
March, 2012 one of the original machines which cost Rs.2,000 was found to have
become obsolete and was sold as scrap for Rs.500, it was replaced on the same day
by a new machine costing Rs.800. Depreciation is to be provided at the rate of 15%
per annum on the Written Down Value Method. Show machinery account for three
years. The year end to be followed is 31
st
December.
7
OR
Q4. (a) Differentiate between Provision and Reserves. 7
(b) Write a short-note on DuPont Model.
Q5. (a) From the following trial balance of Ram Gopal and Sons as on 31
st
March, 2012,
prepare trading and profit and loss account for the year ending 31
st
March, 2012 and
balance sheet as on that date:
Particulars Debit (Rs.) Credit (Rs.)
Capital - 3,50,000
Drawings 25,000 -
Plant and Machinery 1,50,000 -
Debtors and Creditors 90,000 40,000
Returns 10,000 12,000
Discount 5,000 4,000
Commission 8,000 -
Interest on bank loan 22,000 -
Furniture 34,000 -
Provision for Doubtful debts - 12,000
Wages 48,000 -
Salaries 60,000 -
Advertisements 15,000 -
Taxes and Insurance 12,000 -
7
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Page 1 of 3
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 1? EXAMINATION ? SUMMER 2019
Subject Code:2810001 Date:14/05/2019
Subject Name: Accounting for Managers
Time: 02:30 PM 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.
Q1. (a) Identify the letter of the choice that best completes the statement or answers the
question
6
1. A person who supplies goods to the firm is known as
A A Debtor B A Creditor
C Proprietor D None of these
2. Investment is taken as
A Current Assets B Fixed Assets
C None of these D Both A and B
3. The animals used in the business is known as
A Current Assets B Dead-stock
C Livestock D Fictitious Assets
4. Insolvent means
A Assets=Liabilities B Assets>Liabilities
C Assets and Liabilities=0 D Assets
5. The amount which is irrecoverable from debtor is known as
A Doubtful Debt B Bad Debts
C Good Debt D None of these
6. An entrepreneur withdrawing goods or money for personal use is known as
A Capital B Expense
C Withdrawals D Drawings
Q1. (b) Explain the following terms:
1. Dead-stock
2. Intangible Asset
3. Authorized Share Capital
4. Preliminary Expenses
4
Q1. (c) 100 shares of Rs.500 each are purchased by Mr.X after paying brokerage of 2% and
Investment Advisor?s Fees of Rs.500. Find out the cost of investment.
4
Q2. (a) Write a short-note on Trend Analysis. Support it with imaginary figures. 7
Q2. (b) From the following data, identify the value of the closing stock and Cost of Goods
Sold under LIFO, FIFO and WAM as per periodic inventory system. Comment on
the value of the closing stock.
July 1 Inventory 100 units at Rs.8
July 8 Sale 90 units
July 15 Purchase 125 units at Rs.12
25 Sale 60 units
7
OR
Q2. (b) Write a short-note on AS-9 Recognition of Income. 7
Q3. (a) How is Accounting useful to different type of users? Elaborate the statement. 7
Q3. (b) Journalize the following the transactions:
1. Started business with cash Rs.1,00,000.
7
Page 2 of 3
2. Bought goods from Mr. Ram for Rs.80,000, 50% paid in cash.
3. Sold goods of Rs.25,000 to Ms.Rekha at 35% profit on Sales price.
4. Paid salary Rs.30,000 to Ms.Dipika.
5. Paid Rs.30,000 in full settlement to Ms. Tina towards her dues of
Rs.30,105.
6. Rent of Rs.3,000 is due but not received.
7. Paid Rs.1,001 in the wedding ceremony of maternal uncle?s son.
OR
Q3. (a) Write a short-note on Accounting Standard with reference to various levels of
categories of enterprises.
7
Q3. (b) Interpret the following ratios in the best possible manner. Both the companies are in
the same industry.
Type of Ratio Lincoln Company Abraham Company
Current Ratio 2.6:1 2.2:1
Quick Ratio 2.6:1 2.6:1
Debtors Turnover 12.7 times 9.2 times
Average Collection
Period
29 days 40days
Inventory Turnover 3.8 times 2.8 times
Interest Coverage Ratio 28.1 times 12.2 times
Rate earned on total
assets
8.2% 7.3%
7
Q4. (a) What is Generally Accepted Accounting Principles? Explain any four principles of
your choice with appropriate example.
7
Q4. (b) On 1
st
January, 2010 M/s. Joseph Limited purchased machinery for Rs.12,000 and
on 30
th
June, 2011, it acquired additional machinery at a cost of Rs.2,000. On 31
st
March, 2012 one of the original machines which cost Rs.2,000 was found to have
become obsolete and was sold as scrap for Rs.500, it was replaced on the same day
by a new machine costing Rs.800. Depreciation is to be provided at the rate of 15%
per annum on the Written Down Value Method. Show machinery account for three
years. The year end to be followed is 31
st
December.
7
OR
Q4. (a) Differentiate between Provision and Reserves. 7
(b) Write a short-note on DuPont Model.
Q5. (a) From the following trial balance of Ram Gopal and Sons as on 31
st
March, 2012,
prepare trading and profit and loss account for the year ending 31
st
March, 2012 and
balance sheet as on that date:
Particulars Debit (Rs.) Credit (Rs.)
Capital - 3,50,000
Drawings 25,000 -
Plant and Machinery 1,50,000 -
Debtors and Creditors 90,000 40,000
Returns 10,000 12,000
Discount 5,000 4,000
Commission 8,000 -
Interest on bank loan 22,000 -
Furniture 34,000 -
Provision for Doubtful debts - 12,000
Wages 48,000 -
Salaries 60,000 -
Advertisements 15,000 -
Taxes and Insurance 12,000 -
7
Page 3 of 3
Purchases and Sales 2,40,000 4,80,000
Stock (as on 31.03.2011) 50,000 -
Carriage 12,000 -
Land and Buildings 3,00,000 -
Cash in Hand 12,000 -
Cash at Bank 25,000 -
10% Bank Loan (as on 01.4.2011) - 2,20,000
Total 11,18,000 11,18,000
Adjustments:
1. Stock was valued at rs.46,000 as on 31
st
March, 2012.
2. Wages and salaries were outstanding Rs.5,000 and Rs.4,000 respectively on
31
st
March, 2012.
3. Depreciate Plant and Machinery, land and buildings and furniture at 15%,
2.5% and 15% respectively.
4. Provide for doubtful debts at 10% on debtors.
(b) Draw the Performa of Vertical Balance-Sheet with imaginary numbers.
OR
Q5. (a) The accompanying balance-sheet relates to Hypothetical Ltd. Convert these into
Common-Size Statements and interpret the same. (Amount is in lakh of rupees).
Liabilities 2015 2016 Assets 2015 2016
Equity Share
Capital (Rs.10
each)
240.0 240.0 Plant (net) 402 390
General Reserves 96.0 182.0 Cash 54 78
Long Term
Loans
182.0 169.5 Debtors 60 65
Creditors 67.0 52.0 Inventories 84 117
Outstanding
Expenses
6.0 -
Other Current
Liabilities
9.0 6.5
Total 600 650 Total 600 650
7
(b) Write a short-note on Fund Flow Analysis. 7
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This post was last modified on 19 February 2020