Download GTU MBA 2018 Winter 1st Sem 1519301 International Accounting Practice Question Paper

Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2018 Winter 1st Sem 1519301 International Accounting Practice Previous Question Paper

1

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA(International Business) ? SEMESTER ? 1 EXAMINATION ? WINTER ? 2018

Subject Code: 1519301 Date:24/12/2018
Subject Name: International Accounting Practice
Time: 10:30 am to 1:30 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:
(a) Cost Centre
(b) Cost Unit
(c) Trend Analysis
(d) Double Taxation
(e) International Finance
(f) Financial Reporting
(g) Flexible Budget
14

Q.2 (a) Define International Accounting. Discuss the factors that have contributed to
the development of International Accounting.
07
(b) State and Explain difficulties encountered in International Accounting Practices.
Suggest measures to overcome these difficulties.
07
OR
(b) Differentiate US GAAP & Indian GAAP. 07

Q.3 (a) Discuss the scope of International Financial Management and list out the
functions of International Finance Manager.
07
(b) XYZ Ltd produced and sold 1,000 mobile during the year 2009. Selling Price
per unit is Rs. 280. The particulars are as under:
Particulars Amount
Materials 1,20,000
Direct Wages 90,000
Direct Expenses 10,000
Factory Expenses (40% Variable) 15,000
Office Expenses (Fixed) 5,000
Selling Expenses (50% Variable) 10,000
During the year 2010, it was estimated that 1500 mobiles phones will be
produced and sold. The additional information is as under:
1) Direct wages per unit will decrease by 20%.
2) Fixed Factory expenses will increase by Rs. 1500
3) Fixed office and fixed selling expenses will increase by 20%.
4) 25% of profit is estimated on cost.
Prepare: (i) Cost Sheet based on per unit cost and total cost for 2009.
(ii) Estimated Cost Statement (Tender Sheet) based on per unit cost
and total cost for 2010.
07
OR
Q.3 (a) What is meant by International Tax Planning? Discuss the objectives of
International Taxation and explain Tax Havens.
07
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1

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA(International Business) ? SEMESTER ? 1 EXAMINATION ? WINTER ? 2018

Subject Code: 1519301 Date:24/12/2018
Subject Name: International Accounting Practice
Time: 10:30 am to 1:30 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:
(a) Cost Centre
(b) Cost Unit
(c) Trend Analysis
(d) Double Taxation
(e) International Finance
(f) Financial Reporting
(g) Flexible Budget
14

Q.2 (a) Define International Accounting. Discuss the factors that have contributed to
the development of International Accounting.
07
(b) State and Explain difficulties encountered in International Accounting Practices.
Suggest measures to overcome these difficulties.
07
OR
(b) Differentiate US GAAP & Indian GAAP. 07

Q.3 (a) Discuss the scope of International Financial Management and list out the
functions of International Finance Manager.
07
(b) XYZ Ltd produced and sold 1,000 mobile during the year 2009. Selling Price
per unit is Rs. 280. The particulars are as under:
Particulars Amount
Materials 1,20,000
Direct Wages 90,000
Direct Expenses 10,000
Factory Expenses (40% Variable) 15,000
Office Expenses (Fixed) 5,000
Selling Expenses (50% Variable) 10,000
During the year 2010, it was estimated that 1500 mobiles phones will be
produced and sold. The additional information is as under:
1) Direct wages per unit will decrease by 20%.
2) Fixed Factory expenses will increase by Rs. 1500
3) Fixed office and fixed selling expenses will increase by 20%.
4) 25% of profit is estimated on cost.
Prepare: (i) Cost Sheet based on per unit cost and total cost for 2009.
(ii) Estimated Cost Statement (Tender Sheet) based on per unit cost
and total cost for 2010.
07
OR
Q.3 (a) What is meant by International Tax Planning? Discuss the objectives of
International Taxation and explain Tax Havens.
07
2
(b) A product of company passes through process A, B and C. The wastage of
process A & B is sold at Rs. 10 of 100 units. The wastage of process C is sold at
Rs. 80 of 100 units. Following details are available:
Particulars Process A Rs. Process B Rs. Process C Rs.
Materials 12,000 8,000 4,000
Direct Wages 16,000 12,000 6,000
Direct Expenses 2,440 1,404 8,924
Other Factory
Charges
3,500 3,800 4,200
Produced Units 19,500 18,800 16,000
Normal Wastage 2% 5% 10%
20,000 Units were entered in process A at Rs. 1 per unit. Prepare Process
Accounts of all three processes and prepare abnormal loss a/c and abnormal
gain a/c.
07

Q.4 (a) Discuss merits and demerits of Budgeting. 07
(b) The following forecasts have been made for ABC Ltd for the period January to
April 2010.
January February March April
Sales Rs. 75,000 Rs. 1,05,000 Rs. 1,80,000 Rs. 1,05,000
Raw Materials 70,000 1,00,000 80,000 85,000
Manufacturing
Expenses
10,000 20,000 29,000 16,000
Loan
Instalment
1,000 11,000 21,000 21,000
Additional Information:
1) All Sales are made on credit basis, 2/3 of debtors are collected in the
same month and balance in the next month. There is no expected bad
debt. The debtors on January 1, 2010 were Rs. 30,000.
2) The minimum cash balance, the firm must have is estimated to be Rs.
5,000, however, the cash balance on January 1, was Rs. 6,500.
3) Borrowing if any, can be made in multiple of Rs. 100 only.
Prepare cash budget for the period of 4 months (ignore interest on borrowing).
07
OR
Q.4 (a) Write a note on managerial uses of Marginal Costing. 07
(b) From the following information calculate:
1) P.V Ratio
2) Break Even Point in Rs.
3) Expected Profit when Sales is Rs. 15,00,000
4) Amount of Sale, when loss is Rs. 80,000
5) Margin of Safety for the year 2005-06.
Year Cost (Rs.) Profit or Loss (Rs.)
2004-05 8,20,000 ? 20,000
2005-06 11,20,000 + 80,000

07






Q.5 The Trail Balance of ABC Ltd as on 31-03-2013 is as under:
Particulars Amount Particulars Amount
Land & Building 8,00,000 Share Capital:
Plant & Machinery 6,00,000 12% Preference Shares 3,00,000
Furniture 1,20,000 Equity Shares 12,00,000
Purchases 18,60,000 10% Debentures 3,00,000
Opening Stock 1,40,000 Sales 32,00,000
14
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1

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA(International Business) ? SEMESTER ? 1 EXAMINATION ? WINTER ? 2018

Subject Code: 1519301 Date:24/12/2018
Subject Name: International Accounting Practice
Time: 10:30 am to 1:30 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:
(a) Cost Centre
(b) Cost Unit
(c) Trend Analysis
(d) Double Taxation
(e) International Finance
(f) Financial Reporting
(g) Flexible Budget
14

Q.2 (a) Define International Accounting. Discuss the factors that have contributed to
the development of International Accounting.
07
(b) State and Explain difficulties encountered in International Accounting Practices.
Suggest measures to overcome these difficulties.
07
OR
(b) Differentiate US GAAP & Indian GAAP. 07

Q.3 (a) Discuss the scope of International Financial Management and list out the
functions of International Finance Manager.
07
(b) XYZ Ltd produced and sold 1,000 mobile during the year 2009. Selling Price
per unit is Rs. 280. The particulars are as under:
Particulars Amount
Materials 1,20,000
Direct Wages 90,000
Direct Expenses 10,000
Factory Expenses (40% Variable) 15,000
Office Expenses (Fixed) 5,000
Selling Expenses (50% Variable) 10,000
During the year 2010, it was estimated that 1500 mobiles phones will be
produced and sold. The additional information is as under:
1) Direct wages per unit will decrease by 20%.
2) Fixed Factory expenses will increase by Rs. 1500
3) Fixed office and fixed selling expenses will increase by 20%.
4) 25% of profit is estimated on cost.
Prepare: (i) Cost Sheet based on per unit cost and total cost for 2009.
(ii) Estimated Cost Statement (Tender Sheet) based on per unit cost
and total cost for 2010.
07
OR
Q.3 (a) What is meant by International Tax Planning? Discuss the objectives of
International Taxation and explain Tax Havens.
07
2
(b) A product of company passes through process A, B and C. The wastage of
process A & B is sold at Rs. 10 of 100 units. The wastage of process C is sold at
Rs. 80 of 100 units. Following details are available:
Particulars Process A Rs. Process B Rs. Process C Rs.
Materials 12,000 8,000 4,000
Direct Wages 16,000 12,000 6,000
Direct Expenses 2,440 1,404 8,924
Other Factory
Charges
3,500 3,800 4,200
Produced Units 19,500 18,800 16,000
Normal Wastage 2% 5% 10%
20,000 Units were entered in process A at Rs. 1 per unit. Prepare Process
Accounts of all three processes and prepare abnormal loss a/c and abnormal
gain a/c.
07

Q.4 (a) Discuss merits and demerits of Budgeting. 07
(b) The following forecasts have been made for ABC Ltd for the period January to
April 2010.
January February March April
Sales Rs. 75,000 Rs. 1,05,000 Rs. 1,80,000 Rs. 1,05,000
Raw Materials 70,000 1,00,000 80,000 85,000
Manufacturing
Expenses
10,000 20,000 29,000 16,000
Loan
Instalment
1,000 11,000 21,000 21,000
Additional Information:
1) All Sales are made on credit basis, 2/3 of debtors are collected in the
same month and balance in the next month. There is no expected bad
debt. The debtors on January 1, 2010 were Rs. 30,000.
2) The minimum cash balance, the firm must have is estimated to be Rs.
5,000, however, the cash balance on January 1, was Rs. 6,500.
3) Borrowing if any, can be made in multiple of Rs. 100 only.
Prepare cash budget for the period of 4 months (ignore interest on borrowing).
07
OR
Q.4 (a) Write a note on managerial uses of Marginal Costing. 07
(b) From the following information calculate:
1) P.V Ratio
2) Break Even Point in Rs.
3) Expected Profit when Sales is Rs. 15,00,000
4) Amount of Sale, when loss is Rs. 80,000
5) Margin of Safety for the year 2005-06.
Year Cost (Rs.) Profit or Loss (Rs.)
2004-05 8,20,000 ? 20,000
2005-06 11,20,000 + 80,000

07






Q.5 The Trail Balance of ABC Ltd as on 31-03-2013 is as under:
Particulars Amount Particulars Amount
Land & Building 8,00,000 Share Capital:
Plant & Machinery 6,00,000 12% Preference Shares 3,00,000
Furniture 1,20,000 Equity Shares 12,00,000
Purchases 18,60,000 10% Debentures 3,00,000
Opening Stock 1,40,000 Sales 32,00,000
14
3
(Cont ?)
Particulars Amount Particulars Amount
Goods Returned 80,000 Goods Returned 60,000
Debtors 4,00,000 Creditors 2,00,000
Wages 6,80,000 Loan from directors 40,000
Octroi 1,80,000 Interest on Investments 16,000
Selling & Distribution
Expenses
40,000 Staff Pension Fund 16,000
Carriage Outward 16,000 Bills Payables 20,000
Administrative
Expenses
1,70,000 Fixed Deposits 48,000
Telephone Deposit 20,000 General Reserve 1,40,000
Directors fees 20,000 Share Forfeiture A/c 20,000
Interest on Debentures 12,000 Profit & Loss A/c 60,000
Bills Receivables 40,000
Cash & Bank 50,000
Discount on
Debentures
80,000
Investments 3,00,000
Loose Tools 12,000
56,20,000 56,20,000
Additional Information:
1. Write off Rs. 10,000 of discount on debentures.
2. Closing stock is valued at Rs. 2,80,000
3. Depreciate Land & Building, Plant & Machinery and Furniture by 10%.
4. Transfer Rs. 40,000 to General Reserve
Prepare final accounts of the company as per the Companies Act.

OR
Q.5 (a) The following information is obtained from the books of Naman Ltd:
Current Ratio 2.5
Liquid Ratio 1.5
Working Capital Rs. 6,00,000
Stock Turnover Ratio
(Cost of Sales/Closing Stock)
8
Gross Profit Ratio 20%
Debtors Ratio 2 Months
Fixed Assets/Shareholders Fund 0.80
Find out following information:
1. Current Assets 2. Current Liabilities 3. Cost of Sales 4. Gross Profit
5. Debtors 6. Fixed Assets 7. Shareholders? Fund
07
(b) The balance sheet of Vinit Ltd is given below. Analyze financial position of
Vinit Ltd using technique of comparative financial statement (Balance Sheet):
Liabilities 31-03-2005
(Amount in Rs.)
31-03-2006
(Amount in Rs.)
Preference Share Capital 1,00,000 2,00,000
Equity Share Capital 5,00,000 10,00,000
General Reserve 1,00,000 2,50,000
Accounts Payable 1,00,000 2,00,000
Outstanding Expenses 50,000 50,000
Profit & Loss Account 2,00,000 3,00,000
10,50,000 20,00,000

07
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1

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA(International Business) ? SEMESTER ? 1 EXAMINATION ? WINTER ? 2018

Subject Code: 1519301 Date:24/12/2018
Subject Name: International Accounting Practice
Time: 10:30 am to 1:30 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:
(a) Cost Centre
(b) Cost Unit
(c) Trend Analysis
(d) Double Taxation
(e) International Finance
(f) Financial Reporting
(g) Flexible Budget
14

Q.2 (a) Define International Accounting. Discuss the factors that have contributed to
the development of International Accounting.
07
(b) State and Explain difficulties encountered in International Accounting Practices.
Suggest measures to overcome these difficulties.
07
OR
(b) Differentiate US GAAP & Indian GAAP. 07

Q.3 (a) Discuss the scope of International Financial Management and list out the
functions of International Finance Manager.
07
(b) XYZ Ltd produced and sold 1,000 mobile during the year 2009. Selling Price
per unit is Rs. 280. The particulars are as under:
Particulars Amount
Materials 1,20,000
Direct Wages 90,000
Direct Expenses 10,000
Factory Expenses (40% Variable) 15,000
Office Expenses (Fixed) 5,000
Selling Expenses (50% Variable) 10,000
During the year 2010, it was estimated that 1500 mobiles phones will be
produced and sold. The additional information is as under:
1) Direct wages per unit will decrease by 20%.
2) Fixed Factory expenses will increase by Rs. 1500
3) Fixed office and fixed selling expenses will increase by 20%.
4) 25% of profit is estimated on cost.
Prepare: (i) Cost Sheet based on per unit cost and total cost for 2009.
(ii) Estimated Cost Statement (Tender Sheet) based on per unit cost
and total cost for 2010.
07
OR
Q.3 (a) What is meant by International Tax Planning? Discuss the objectives of
International Taxation and explain Tax Havens.
07
2
(b) A product of company passes through process A, B and C. The wastage of
process A & B is sold at Rs. 10 of 100 units. The wastage of process C is sold at
Rs. 80 of 100 units. Following details are available:
Particulars Process A Rs. Process B Rs. Process C Rs.
Materials 12,000 8,000 4,000
Direct Wages 16,000 12,000 6,000
Direct Expenses 2,440 1,404 8,924
Other Factory
Charges
3,500 3,800 4,200
Produced Units 19,500 18,800 16,000
Normal Wastage 2% 5% 10%
20,000 Units were entered in process A at Rs. 1 per unit. Prepare Process
Accounts of all three processes and prepare abnormal loss a/c and abnormal
gain a/c.
07

Q.4 (a) Discuss merits and demerits of Budgeting. 07
(b) The following forecasts have been made for ABC Ltd for the period January to
April 2010.
January February March April
Sales Rs. 75,000 Rs. 1,05,000 Rs. 1,80,000 Rs. 1,05,000
Raw Materials 70,000 1,00,000 80,000 85,000
Manufacturing
Expenses
10,000 20,000 29,000 16,000
Loan
Instalment
1,000 11,000 21,000 21,000
Additional Information:
1) All Sales are made on credit basis, 2/3 of debtors are collected in the
same month and balance in the next month. There is no expected bad
debt. The debtors on January 1, 2010 were Rs. 30,000.
2) The minimum cash balance, the firm must have is estimated to be Rs.
5,000, however, the cash balance on January 1, was Rs. 6,500.
3) Borrowing if any, can be made in multiple of Rs. 100 only.
Prepare cash budget for the period of 4 months (ignore interest on borrowing).
07
OR
Q.4 (a) Write a note on managerial uses of Marginal Costing. 07
(b) From the following information calculate:
1) P.V Ratio
2) Break Even Point in Rs.
3) Expected Profit when Sales is Rs. 15,00,000
4) Amount of Sale, when loss is Rs. 80,000
5) Margin of Safety for the year 2005-06.
Year Cost (Rs.) Profit or Loss (Rs.)
2004-05 8,20,000 ? 20,000
2005-06 11,20,000 + 80,000

07






Q.5 The Trail Balance of ABC Ltd as on 31-03-2013 is as under:
Particulars Amount Particulars Amount
Land & Building 8,00,000 Share Capital:
Plant & Machinery 6,00,000 12% Preference Shares 3,00,000
Furniture 1,20,000 Equity Shares 12,00,000
Purchases 18,60,000 10% Debentures 3,00,000
Opening Stock 1,40,000 Sales 32,00,000
14
3
(Cont ?)
Particulars Amount Particulars Amount
Goods Returned 80,000 Goods Returned 60,000
Debtors 4,00,000 Creditors 2,00,000
Wages 6,80,000 Loan from directors 40,000
Octroi 1,80,000 Interest on Investments 16,000
Selling & Distribution
Expenses
40,000 Staff Pension Fund 16,000
Carriage Outward 16,000 Bills Payables 20,000
Administrative
Expenses
1,70,000 Fixed Deposits 48,000
Telephone Deposit 20,000 General Reserve 1,40,000
Directors fees 20,000 Share Forfeiture A/c 20,000
Interest on Debentures 12,000 Profit & Loss A/c 60,000
Bills Receivables 40,000
Cash & Bank 50,000
Discount on
Debentures
80,000
Investments 3,00,000
Loose Tools 12,000
56,20,000 56,20,000
Additional Information:
1. Write off Rs. 10,000 of discount on debentures.
2. Closing stock is valued at Rs. 2,80,000
3. Depreciate Land & Building, Plant & Machinery and Furniture by 10%.
4. Transfer Rs. 40,000 to General Reserve
Prepare final accounts of the company as per the Companies Act.

OR
Q.5 (a) The following information is obtained from the books of Naman Ltd:
Current Ratio 2.5
Liquid Ratio 1.5
Working Capital Rs. 6,00,000
Stock Turnover Ratio
(Cost of Sales/Closing Stock)
8
Gross Profit Ratio 20%
Debtors Ratio 2 Months
Fixed Assets/Shareholders Fund 0.80
Find out following information:
1. Current Assets 2. Current Liabilities 3. Cost of Sales 4. Gross Profit
5. Debtors 6. Fixed Assets 7. Shareholders? Fund
07
(b) The balance sheet of Vinit Ltd is given below. Analyze financial position of
Vinit Ltd using technique of comparative financial statement (Balance Sheet):
Liabilities 31-03-2005
(Amount in Rs.)
31-03-2006
(Amount in Rs.)
Preference Share Capital 1,00,000 2,00,000
Equity Share Capital 5,00,000 10,00,000
General Reserve 1,00,000 2,50,000
Accounts Payable 1,00,000 2,00,000
Outstanding Expenses 50,000 50,000
Profit & Loss Account 2,00,000 3,00,000
10,50,000 20,00,000

07
4
(Cont..)
Assets 31-03-2005
(Amount in Rs.)
31-03-2006
(Amount in Rs.)
Fixed Assets 4,00,000 10,00,000
Investments 3,00,000 1,00,000
Receivables 2,00,000 4,00,000
Inventories 1,00,000 4,00,000
Cash at Bank 50,000 1,00,000
10,50,000 20,00,000
07

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