Download GTU MBA 2018 Summer 1st Sem 3519901 Accounting For Manager Question Paper

Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2018 Summer 1st Sem 3519901 Accounting For Manager Previous Question Paper

Page 1 of 4

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (PART TIME) SEMESTER 01 - EXAMINATION ? SUMMER-2018

Subject Code: 3519901 Date:30/04/2018
Subject Name: Accounting For Manager
Time: 10:30 AM To 01:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.


Q.
No.
Marks
Q.1 Explain following terms in brief.
(a) Fictitious assets
(b) Contingent liability
(c) Book keeping
(d) GAAP
(e) Capital reserves
(f) Trial balance
(g) Managerial accounting

14
Q.2 (a) What is Computerized accounting? Explain its significance. 07
(b) Journalize the following transactions of ltd for the month of march, 2015.
1 Jatin started business with cash Rs.50000, Furniture Rs.5000, Motor
Rs. 40000, Goods Rs.20000, Machinery Rs.10000, Building Rs.60000, 10%
loan Rs. 10000 from ICICI bank, Creditors Rs.9000.
2 Purchased goods of Rs.30000 from Mallika Distributors on credit at
10% trade discount.
3 Sold goods costing Rs. 15000 purchased from Mallika Distributors,
after adding 20% profit to Sangita at 10% trade discount.
4 Received Income Tax refund Rs. 120 And Received sales Tax
refund Rs.100
5 Purchased Machinery for Rs. 5000 from Rivera Co. and paid for it
through cheque. Paid Rs.150 as wages in cash for installing the machine.
6 Received personal dividend Rs.700, which was deposited in
business bank account.
7 Sold goods of cost price Rs.5000 for cash so as to earn 20% profit on
sales price.
07


OR


(b) A company purchased a machine for Rs.380000 on 1-1-97 for instalment
cost Rs. 20000. Depreciation is provided on Reducing Balance Method at
10%p.a. The accounting year ends on 31-12 every year. On 1-7-98 other
machine was purchased at a cost of Rs. 38000 for which instalment charges
of Rs.5000. On 1-7-99 ? of the machine purchased on 1-1-97 and ? of the
machine purchased on 1-7-98 were sold at book value.
07
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Page 1 of 4

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (PART TIME) SEMESTER 01 - EXAMINATION ? SUMMER-2018

Subject Code: 3519901 Date:30/04/2018
Subject Name: Accounting For Manager
Time: 10:30 AM To 01:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.


Q.
No.
Marks
Q.1 Explain following terms in brief.
(a) Fictitious assets
(b) Contingent liability
(c) Book keeping
(d) GAAP
(e) Capital reserves
(f) Trial balance
(g) Managerial accounting

14
Q.2 (a) What is Computerized accounting? Explain its significance. 07
(b) Journalize the following transactions of ltd for the month of march, 2015.
1 Jatin started business with cash Rs.50000, Furniture Rs.5000, Motor
Rs. 40000, Goods Rs.20000, Machinery Rs.10000, Building Rs.60000, 10%
loan Rs. 10000 from ICICI bank, Creditors Rs.9000.
2 Purchased goods of Rs.30000 from Mallika Distributors on credit at
10% trade discount.
3 Sold goods costing Rs. 15000 purchased from Mallika Distributors,
after adding 20% profit to Sangita at 10% trade discount.
4 Received Income Tax refund Rs. 120 And Received sales Tax
refund Rs.100
5 Purchased Machinery for Rs. 5000 from Rivera Co. and paid for it
through cheque. Paid Rs.150 as wages in cash for installing the machine.
6 Received personal dividend Rs.700, which was deposited in
business bank account.
7 Sold goods of cost price Rs.5000 for cash so as to earn 20% profit on
sales price.
07


OR


(b) A company purchased a machine for Rs.380000 on 1-1-97 for instalment
cost Rs. 20000. Depreciation is provided on Reducing Balance Method at
10%p.a. The accounting year ends on 31-12 every year. On 1-7-98 other
machine was purchased at a cost of Rs. 38000 for which instalment charges
of Rs.5000. On 1-7-99 ? of the machine purchased on 1-1-97 and ? of the
machine purchased on 1-7-98 were sold at book value.
07
Page 2 of 4

Prepare Machine Account and depreciation Account for 3 Years.
Q.3 (a) Distinguish between Financial Accounting and Management Accounting. 07
(b) Perform trend analysis of Reliance industries ltd from the following
information
(Rs in crore)
Details 2001-02 2000-01 99-00 98-99 97-98
Turnover 57120 28008 20301 14553 13404
Total income 57902 28391 20988 15161 13740
EBDIT 8658 5562 4746 3318 2887
Depreciation 2816 1565 1278 855 667
Profit after tax 3243 2646 2403 1704 1653
Taxes paid 10470 4277 3719 2893 3021
Equity dividend
%
47.5 42.5 40 38 35

07
OR
Q.3 (a) Write short note on: (1) Money measurement concept (2) Going concern
concept.
07
(b) ABC Corporation purchased an equipment for Rs.2,00,000/-. The
equipment was expected to be useful for six years, or 1,500 hours, with an
estimated residual value of Rs.20,000 at the end of that time. The
equipment logged 200 hours in the first year. The equipment is expected to
produce 5000 units during a year. You are required to compute
depreciation expense for the first year under each of the following
methods:(1) Straight line method, (2) Machine hour method (3) Sum of
the years digits method and (4) Production Units method
07
Q.4 (a) What do you mean by the term 'depreciation'? What are its causes? Why do
firms provide depreciation?
07
(b) Prepare a common-size balance sheet from following data and interpret the
same
07
Assets 2006 2007
Fixed Assets ( Net) 120000 175000
Stock 20000 25000
Debtors 50000 62500
Bills receivable 10000 30000
Prepaid expense 5000 6000
Cash at bank 20000 26500
Cash in hand 5000 15000
230000 340000
Liabilities 2006 2007
Equity capital 100000 165000
Preference share
capital
50000 75000
Reserves 10000 15000
P&L account 7500 10000
Bank overdraft 25000 25000
Creditors 20000 25000
Provision for tax 10000 12500

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Page 1 of 4

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (PART TIME) SEMESTER 01 - EXAMINATION ? SUMMER-2018

Subject Code: 3519901 Date:30/04/2018
Subject Name: Accounting For Manager
Time: 10:30 AM To 01:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.


Q.
No.
Marks
Q.1 Explain following terms in brief.
(a) Fictitious assets
(b) Contingent liability
(c) Book keeping
(d) GAAP
(e) Capital reserves
(f) Trial balance
(g) Managerial accounting

14
Q.2 (a) What is Computerized accounting? Explain its significance. 07
(b) Journalize the following transactions of ltd for the month of march, 2015.
1 Jatin started business with cash Rs.50000, Furniture Rs.5000, Motor
Rs. 40000, Goods Rs.20000, Machinery Rs.10000, Building Rs.60000, 10%
loan Rs. 10000 from ICICI bank, Creditors Rs.9000.
2 Purchased goods of Rs.30000 from Mallika Distributors on credit at
10% trade discount.
3 Sold goods costing Rs. 15000 purchased from Mallika Distributors,
after adding 20% profit to Sangita at 10% trade discount.
4 Received Income Tax refund Rs. 120 And Received sales Tax
refund Rs.100
5 Purchased Machinery for Rs. 5000 from Rivera Co. and paid for it
through cheque. Paid Rs.150 as wages in cash for installing the machine.
6 Received personal dividend Rs.700, which was deposited in
business bank account.
7 Sold goods of cost price Rs.5000 for cash so as to earn 20% profit on
sales price.
07


OR


(b) A company purchased a machine for Rs.380000 on 1-1-97 for instalment
cost Rs. 20000. Depreciation is provided on Reducing Balance Method at
10%p.a. The accounting year ends on 31-12 every year. On 1-7-98 other
machine was purchased at a cost of Rs. 38000 for which instalment charges
of Rs.5000. On 1-7-99 ? of the machine purchased on 1-1-97 and ? of the
machine purchased on 1-7-98 were sold at book value.
07
Page 2 of 4

Prepare Machine Account and depreciation Account for 3 Years.
Q.3 (a) Distinguish between Financial Accounting and Management Accounting. 07
(b) Perform trend analysis of Reliance industries ltd from the following
information
(Rs in crore)
Details 2001-02 2000-01 99-00 98-99 97-98
Turnover 57120 28008 20301 14553 13404
Total income 57902 28391 20988 15161 13740
EBDIT 8658 5562 4746 3318 2887
Depreciation 2816 1565 1278 855 667
Profit after tax 3243 2646 2403 1704 1653
Taxes paid 10470 4277 3719 2893 3021
Equity dividend
%
47.5 42.5 40 38 35

07
OR
Q.3 (a) Write short note on: (1) Money measurement concept (2) Going concern
concept.
07
(b) ABC Corporation purchased an equipment for Rs.2,00,000/-. The
equipment was expected to be useful for six years, or 1,500 hours, with an
estimated residual value of Rs.20,000 at the end of that time. The
equipment logged 200 hours in the first year. The equipment is expected to
produce 5000 units during a year. You are required to compute
depreciation expense for the first year under each of the following
methods:(1) Straight line method, (2) Machine hour method (3) Sum of
the years digits method and (4) Production Units method
07
Q.4 (a) What do you mean by the term 'depreciation'? What are its causes? Why do
firms provide depreciation?
07
(b) Prepare a common-size balance sheet from following data and interpret the
same
07
Assets 2006 2007
Fixed Assets ( Net) 120000 175000
Stock 20000 25000
Debtors 50000 62500
Bills receivable 10000 30000
Prepaid expense 5000 6000
Cash at bank 20000 26500
Cash in hand 5000 15000
230000 340000
Liabilities 2006 2007
Equity capital 100000 165000
Preference share
capital
50000 75000
Reserves 10000 15000
P&L account 7500 10000
Bank overdraft 25000 25000
Creditors 20000 25000
Provision for tax 10000 12500

Page 3 of 4

Proposed dividend 7500 12500
230000 340000

OR
Q.4 (a) What is the managerial need of a Cash Flow Statement? How is it prepared?

07
(b) The following is the balance sheet of XYZ ltd as on 31-12-2003. You are
required to calculate Gross profit ratio, Net profit ratio, Stock turnover ratio,
Debtors ratio (use 300 days), Current ratio, Liquid ratio, Return on
shareholders? fund. (07 marks)
Balance sheet
Liabilities Rs Assets Rs
Equity share capital 5,00,000 Goodwill 30,000
10% debentures 3,00,000 Land and building 3,40,000
Creditors 70,000 Machinery 2,60,000
Bills payable 40,000 Stock 50,000
Unpaid wages 20,000 Debtors 90,000
Bills receivable 30,000
Bank balance 70,000
Pre-paid salary 50,000
Preliminary expenses 10,000

9,30,000 9,30,000
Additional information:
1. Stock (1-1-2003) Rs. 40,000, Sales Rs 8, 00,000. , Gross profit Rs. 3,80,000
2. Debenture interest Rs 40,000, other administrative expenses Rs. 50,000,
Selling and Distribution Expenses Rs. 20,000, Rate of income tax 50%.

07

Q.5 Prepare final accounts of Kiran from Trial Balance on 31-3-2004. (14 Marks)
Particulars Debit Credit Particulars Debit Credit
Capital & Drawing 10,000 60,400 Carriage outward 500
Goodwill (1-4-2003) 30,000
Bad debt & Bad debt
reserve
600 400
Addition to
Goodwill(1-10-2003)
5000 Discount 1800 900
Stock 13,000
Interest received in
advance
200
Purchase and sales 72,000 1,25,000, Rent(Till 30-9-2004) 2400
Goods returned 2,000 5,000 Insurance premium 900
Creditors & Debtors 20,500 10,000 Salary 18500
Typewriter 5,000 Cash balance 27,500
Wages 1200 Bills 2900 6000
Pre-paid commission 200

Goods withdrawn for
personal use

800

Discount reserve on
debtors

500
Adjustments:
1. Closing stock is Rs.16000 whose market value is Rs. 25,000.
2. Rs.1800 for electricity charges for factory are outstanding.
3. Depreciation @ 5 % is to be calculated on Typewriter.
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Page 1 of 4

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (PART TIME) SEMESTER 01 - EXAMINATION ? SUMMER-2018

Subject Code: 3519901 Date:30/04/2018
Subject Name: Accounting For Manager
Time: 10:30 AM To 01:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.


Q.
No.
Marks
Q.1 Explain following terms in brief.
(a) Fictitious assets
(b) Contingent liability
(c) Book keeping
(d) GAAP
(e) Capital reserves
(f) Trial balance
(g) Managerial accounting

14
Q.2 (a) What is Computerized accounting? Explain its significance. 07
(b) Journalize the following transactions of ltd for the month of march, 2015.
1 Jatin started business with cash Rs.50000, Furniture Rs.5000, Motor
Rs. 40000, Goods Rs.20000, Machinery Rs.10000, Building Rs.60000, 10%
loan Rs. 10000 from ICICI bank, Creditors Rs.9000.
2 Purchased goods of Rs.30000 from Mallika Distributors on credit at
10% trade discount.
3 Sold goods costing Rs. 15000 purchased from Mallika Distributors,
after adding 20% profit to Sangita at 10% trade discount.
4 Received Income Tax refund Rs. 120 And Received sales Tax
refund Rs.100
5 Purchased Machinery for Rs. 5000 from Rivera Co. and paid for it
through cheque. Paid Rs.150 as wages in cash for installing the machine.
6 Received personal dividend Rs.700, which was deposited in
business bank account.
7 Sold goods of cost price Rs.5000 for cash so as to earn 20% profit on
sales price.
07


OR


(b) A company purchased a machine for Rs.380000 on 1-1-97 for instalment
cost Rs. 20000. Depreciation is provided on Reducing Balance Method at
10%p.a. The accounting year ends on 31-12 every year. On 1-7-98 other
machine was purchased at a cost of Rs. 38000 for which instalment charges
of Rs.5000. On 1-7-99 ? of the machine purchased on 1-1-97 and ? of the
machine purchased on 1-7-98 were sold at book value.
07
Page 2 of 4

Prepare Machine Account and depreciation Account for 3 Years.
Q.3 (a) Distinguish between Financial Accounting and Management Accounting. 07
(b) Perform trend analysis of Reliance industries ltd from the following
information
(Rs in crore)
Details 2001-02 2000-01 99-00 98-99 97-98
Turnover 57120 28008 20301 14553 13404
Total income 57902 28391 20988 15161 13740
EBDIT 8658 5562 4746 3318 2887
Depreciation 2816 1565 1278 855 667
Profit after tax 3243 2646 2403 1704 1653
Taxes paid 10470 4277 3719 2893 3021
Equity dividend
%
47.5 42.5 40 38 35

07
OR
Q.3 (a) Write short note on: (1) Money measurement concept (2) Going concern
concept.
07
(b) ABC Corporation purchased an equipment for Rs.2,00,000/-. The
equipment was expected to be useful for six years, or 1,500 hours, with an
estimated residual value of Rs.20,000 at the end of that time. The
equipment logged 200 hours in the first year. The equipment is expected to
produce 5000 units during a year. You are required to compute
depreciation expense for the first year under each of the following
methods:(1) Straight line method, (2) Machine hour method (3) Sum of
the years digits method and (4) Production Units method
07
Q.4 (a) What do you mean by the term 'depreciation'? What are its causes? Why do
firms provide depreciation?
07
(b) Prepare a common-size balance sheet from following data and interpret the
same
07
Assets 2006 2007
Fixed Assets ( Net) 120000 175000
Stock 20000 25000
Debtors 50000 62500
Bills receivable 10000 30000
Prepaid expense 5000 6000
Cash at bank 20000 26500
Cash in hand 5000 15000
230000 340000
Liabilities 2006 2007
Equity capital 100000 165000
Preference share
capital
50000 75000
Reserves 10000 15000
P&L account 7500 10000
Bank overdraft 25000 25000
Creditors 20000 25000
Provision for tax 10000 12500

Page 3 of 4

Proposed dividend 7500 12500
230000 340000

OR
Q.4 (a) What is the managerial need of a Cash Flow Statement? How is it prepared?

07
(b) The following is the balance sheet of XYZ ltd as on 31-12-2003. You are
required to calculate Gross profit ratio, Net profit ratio, Stock turnover ratio,
Debtors ratio (use 300 days), Current ratio, Liquid ratio, Return on
shareholders? fund. (07 marks)
Balance sheet
Liabilities Rs Assets Rs
Equity share capital 5,00,000 Goodwill 30,000
10% debentures 3,00,000 Land and building 3,40,000
Creditors 70,000 Machinery 2,60,000
Bills payable 40,000 Stock 50,000
Unpaid wages 20,000 Debtors 90,000
Bills receivable 30,000
Bank balance 70,000
Pre-paid salary 50,000
Preliminary expenses 10,000

9,30,000 9,30,000
Additional information:
1. Stock (1-1-2003) Rs. 40,000, Sales Rs 8, 00,000. , Gross profit Rs. 3,80,000
2. Debenture interest Rs 40,000, other administrative expenses Rs. 50,000,
Selling and Distribution Expenses Rs. 20,000, Rate of income tax 50%.

07

Q.5 Prepare final accounts of Kiran from Trial Balance on 31-3-2004. (14 Marks)
Particulars Debit Credit Particulars Debit Credit
Capital & Drawing 10,000 60,400 Carriage outward 500
Goodwill (1-4-2003) 30,000
Bad debt & Bad debt
reserve
600 400
Addition to
Goodwill(1-10-2003)
5000 Discount 1800 900
Stock 13,000
Interest received in
advance
200
Purchase and sales 72,000 1,25,000, Rent(Till 30-9-2004) 2400
Goods returned 2,000 5,000 Insurance premium 900
Creditors & Debtors 20,500 10,000 Salary 18500
Typewriter 5,000 Cash balance 27,500
Wages 1200 Bills 2900 6000
Pre-paid commission 200

Goods withdrawn for
personal use

800

Discount reserve on
debtors

500
Adjustments:
1. Closing stock is Rs.16000 whose market value is Rs. 25,000.
2. Rs.1800 for electricity charges for factory are outstanding.
3. Depreciation @ 5 % is to be calculated on Typewriter.
Page 4 of 4

4. Rs 500 are to be written off as bad debts and provide Bad debt reserve @ 5% and Discount
reserve on debtors at 2% on debtors.
5. Goods of the value of Rs 1000 were stolen. Insurance company has accepted the claim for full
amount.
6. The stock of Rs 6000 was remaining to be recorded as purchases.
7. Tuition fees of daughter are paid by giving goods worth Rs. 5000.
8. Insurance premium includes Rs 600 for the year ended on 30-12-2004.
OR
Q.5. From the following trial balance as on 31-3-2004 of Mr. Ajit, you are required to prepare
final accounts. (14 marks)
Names of account Debit (Rs) Credit (Rs)
Stock(1-4-2003) 45000
Salary (up to 28-2-2004) 14300
Capital and drawing 10000 100000
Debtors and creditors 70000 40000
Leasehold premises ( 1-10-2003 for 5 years) 40000
Carriage inward 500
Carriage outward 1200
Office expenses 800
Discount 1700 1900
Bad debt and bad debt reserve 1400 2900
Cash and bank 2500 3000
Wages 15000
Purchases and sales 100000 250000
Return accounts 9000 10000
Commission 700
Machineries 25000
10% investments (30-9-2003) 70000
Interest received on investments 1500
Insurance premium ( up to 1-7-2004) 3600
410000 410000

Adjustments:
1. Value of closing stock is Rs 20000 out of which value of 90% stock is 10 % less and
value of 10% stock is 90% more.
2. Depreciate machineries at 10%. Interest on capital and drawing is 10%.
3. Goods burnt by fire Rs 5000 and Insurance company accepted a claim of Rs 4000.
4. Bad debt of Rs 2000 and Bad debt reserve of 5% is required to be provided on debtors.
5. Commission is due but not received Rs 1300. Outstanding office expenses Rs 200.
6. During the year goods worth Rs 2000 were distributed as sample.

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