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Seat No.:
MBA(International Business) - SEMESTER — 1 EXAMINATION — WINTER - 2018
Subject Code: 1519301
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Enrolment No.
GUJARAT TECHNOLOGICAL UNIVERSITY
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Subject Name: International Accounting Practice
Time: 10:30 am to 1:30 pm
Total Marks: 70
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Instructions:
- Attempt all questions.
- Make suitable assumptions wherever necessary.
- Figures to the right indicate full marks.
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Q.1 Explain the following terms: 14
(a) Cost Centre
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(b) Cost Unit
(c) Trend Analysis
(d) Double Taxation
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(e) International Finance
(f) Financial Reporting
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(g) Flexible Budget
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
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OR
(a) Differentiate US GAAP & Indian GAAP. 07
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(b) Discuss the scope of International Financial Management and list out the functions of International Finance Manager. 07
Q.3 (a) XYZ Ltd produced and sold 1,000 mobile during the year 2009. Selling Price per unit is Rs. 280. The particulars are as under: 07
Particulars Amount
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Materials 1,20,000
Direct Wages 90,000
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Direct Expenses 10,000
Factory Expenses (40% Variable) 15,000
Office Expenses (Fixed) 5,000
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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:
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- Direct wages per unit will decrease by 20%.
- Fixed Factory expenses will increase by Rs. 1500
- Fixed office and fixed selling expenses will increase by 20%.
- 25% of profit is estimated on cost.
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Prepare: (1) Cost Sheet based on per unit cost and total cost for 2009.
(i1) Estimated Cost Statement (Tender Sheet) based on per unit cost and total cost for 2010.
OR
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(b) What is meant by International Tax Planning? Discuss the objectives of International Taxation and explain Tax Havens. 07
Q.3 (a) A company 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: 07
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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
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Direct Expenses 2,440 1,404 8,924
Other Factory Charges 3,500 3,800 4,200
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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.
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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. 07
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| January | February | March | April | |
|---|---|---|---|---|
| Sales Rs. | 75,000 | 1,05,000 | 1,80,000 | 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:
- 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.
- 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.
- Borrowing if any, can be made in multiple of Rs. 100 only.
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Prepare cash budget for the period of 4 months (ignore interest on borrowing).
OR
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Q.4 (a) Write a note on managerial uses of Marginal Costing. 07
(b) From the following information calculate: 07
- P.V Ratio
- Break Even Point in Rs.
- Expected Profit when Sales is Rs. 15,00,000
- Amount of Sale, when loss is Rs. 80,000
- Margin of Safety for the year 2005-06.
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| Year | Cost (Rs.) | Profit or Loss (Rs.) |
|---|---|---|
| 2004-05 | 8,20,000 | —20,000 |
| 2005-06 | 11,20,000 | + 80,000 |
Q.5 The Trail Balance of ABC Ltd as on 31-03-2013 is as under: 14
| 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 |
| 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:
- Write off Rs. 10,000 of discount on debentures.
- Closing stock is valued at Rs. 2,80,000
- Depreciate Land & Building, Plant & Machinery and Furniture by 10%.
- Transfer Rs. 40,000 to General Reserve
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Prepare final accounts of the company as per the Companies Act.
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OR
Q.5 (a) The following information is obtained from the books of Naman Ltd: 07
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Current Ratio 2.5
Liquid Ratio 1.5
Working Capital Rs. 6,00,000
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Stock Turnover Ratio 8
(Cost of Sales/Closing Stock)
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Gross Profit Ratio 20%
Debtors Ratio 2 Months
Fixed Assets/Shareholders Fund 0.80
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Find out following information:
- Current Assets
- Current Liabilities
- Cost of Sales
- Gross Profit
- Debtors
- Fixed Assets
- Shareholders’ Fund
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(b) The balance sheet of Vinit Ltd is given below. Analyze financial position of Vinit Ltd using technique of comparative financial statement (Balance Sheet): 07
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| 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 |
| 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 |
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Date:24/12/2018
This download link is referred from the post: GTU MBA Last 10 Years 2010-2020 Question Papers || Gujarat Technological University
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