Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2018 Summer 1st Sem 3519201 Accounting For Managers Afm Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 1 ? EXAMINATION ? SUMMER 2018
Subject Code: 3519201 Date: 30/04/2018
Subject Name: Accounting for Managers (AFM)
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 following terms.
(a) What do you mean by financial accounting?
(b) Differentiate between accrual basis of accounting and cash basis of accounting.
(c) Explain entity concept.
(d) Explain the causes of depreciation.
(e) Explain gross profit ratio.
(f) Advantages of computerized accounting.
(g) Explain meaning and features of GAAP.
14
Q.2 (a) Explain users of financial accounting details. 07
(b) Journalise the following transactions for April, 2017.
April 1- Mohan commenced business with cash Rs. 20,00,000.
April 2 - Deposited into bank Rs. 17,00,000.
April 4 - Bought furniture for office for cash Rs. 60,000.
April 13 - Goods sold to Gopal on credit Rs. 1,00,000.
April 15 - Bought goods from Ram on credit Rs. 1,10,000.
April 28 - Paid Ram in full settlement Rs. 1,06,000.
April 30 - Paid rent Rs. 20,000.
07
OR
(b) XYZ Co. purchased machinery as follows :
Date of Purchase Cost of Machine (Rs.)
1.4.2006 Rs. 60,000
1.10.2006 Rs. 40,000
1.7.2007 Rs. 20,000
On 1.1.2008 one-third of the machinery which was purchased on 1.4.2006 became
obsolete and was sold for Rs. 6,000. The machinery was to be depreciated by straight
line method at 10% p a.
Show how the Machinery Account would appear in the ledger of the Company for the
years 2006. 2007 and 2008. Assume that the accounting year of the Company ends on
31st December every year.
07
Q.3 (a) Differentiate between periodic inventory system and perpetual inventory system. 07
(b) Total current liabilities are Rs. 80,000 current ratio is 2.5:1. Liquid ratio 1.5:1. Total
current assets include stock, debtors and cash only. Cash is 2/3 of debtors. Calculate
debtors & cash.
07
OR
Q.3 (a) Explain trend analysis with hypothetical example. 07
(b) Ashok Patel runs a computer supplies company. One of the items stocked is the ?Zap?
data disk, had following inventory balance for January, 2017.
07
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Page 1 of 4
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 1 ? EXAMINATION ? SUMMER 2018
Subject Code: 3519201 Date: 30/04/2018
Subject Name: Accounting for Managers (AFM)
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 following terms.
(a) What do you mean by financial accounting?
(b) Differentiate between accrual basis of accounting and cash basis of accounting.
(c) Explain entity concept.
(d) Explain the causes of depreciation.
(e) Explain gross profit ratio.
(f) Advantages of computerized accounting.
(g) Explain meaning and features of GAAP.
14
Q.2 (a) Explain users of financial accounting details. 07
(b) Journalise the following transactions for April, 2017.
April 1- Mohan commenced business with cash Rs. 20,00,000.
April 2 - Deposited into bank Rs. 17,00,000.
April 4 - Bought furniture for office for cash Rs. 60,000.
April 13 - Goods sold to Gopal on credit Rs. 1,00,000.
April 15 - Bought goods from Ram on credit Rs. 1,10,000.
April 28 - Paid Ram in full settlement Rs. 1,06,000.
April 30 - Paid rent Rs. 20,000.
07
OR
(b) XYZ Co. purchased machinery as follows :
Date of Purchase Cost of Machine (Rs.)
1.4.2006 Rs. 60,000
1.10.2006 Rs. 40,000
1.7.2007 Rs. 20,000
On 1.1.2008 one-third of the machinery which was purchased on 1.4.2006 became
obsolete and was sold for Rs. 6,000. The machinery was to be depreciated by straight
line method at 10% p a.
Show how the Machinery Account would appear in the ledger of the Company for the
years 2006. 2007 and 2008. Assume that the accounting year of the Company ends on
31st December every year.
07
Q.3 (a) Differentiate between periodic inventory system and perpetual inventory system. 07
(b) Total current liabilities are Rs. 80,000 current ratio is 2.5:1. Liquid ratio 1.5:1. Total
current assets include stock, debtors and cash only. Cash is 2/3 of debtors. Calculate
debtors & cash.
07
OR
Q.3 (a) Explain trend analysis with hypothetical example. 07
(b) Ashok Patel runs a computer supplies company. One of the items stocked is the ?Zap?
data disk, had following inventory balance for January, 2017.
07
Page 2 of 4
January 1- Opening inventory of 40 units at a cost of Rs. 3.00 each
January 7 - Bought 20 units at a cost of Rs. 3.60 each
January 15 - Sold 36 units
January 21 - Bought 20 units at a cost of Rs. 3.75 each
January 31- Sold 25 units
Calculate closing stock on 31st January, 2017 using perpetual inventory valuation
system using FIFO and LIFO method.
Q.4 (a) Explain the significance and importance of IFRS. 07
(b) From the following Balance Sheets of Amrit Limited as at March 31, 2014 and 2015,
prepare a comparative balance sheet:
Particulars 31 March, 2015 31 March, 2014
I. Equity and Liabilities
1 Shareholders? Funds
a) Share capital 20,00,000 15,00,000
b) Reserve and surplus 13,00,000 14,00,000
2 Non-current Liabilities
Long-term borrowings 19,00,000 16,00,000
3 Current liabilities
Trade payables 3,00,000 2,00,000
Total 55,00,000 47,00,000
II. Assets
1 Non-current assets
a) Fixed assets
- Tangible assets 20,00,000 15,00,000
- Intangible assets 19,00,000 16,00,000
2 Current assets
- Inventories 13,00,000 14,00,000
- Cash and Cash Equivalents 3,00,000 2,00,000
Total 55,00,000 47,00,000
07
OR
Q.4 (a) Explain vertical format of balance sheet. 07
(b) Following are the balance sheets of a Vijay & son:
During the year Rs. 26,000 paid as dividend. The provision made for depreciation
against machinery as on 1.1.15 was Rs. 27,000 and on 31.12.15 Rs 36,000. Prepare a
cash flow statement.
Liabilities 1?1 ?15 31 ?12 ?15 Assets 1?1 ?15 31?12 ?15
Creditors 36,000 41,000 Cash 4,000 3,600
Loan from Partner ? 20,000 Debtor 35,000 38,400
Loan from Bank 30,000 25,000 Stock 25,000 22,000
Capital 1,48,000 1,49,000 Land 20,000 30,000
Building 50,000 55,000
Machinery 80
000 86,000
2,14,000 2,35,000 2,14,000 2,35,000
07
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Page 1 of 4
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 1 ? EXAMINATION ? SUMMER 2018
Subject Code: 3519201 Date: 30/04/2018
Subject Name: Accounting for Managers (AFM)
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 following terms.
(a) What do you mean by financial accounting?
(b) Differentiate between accrual basis of accounting and cash basis of accounting.
(c) Explain entity concept.
(d) Explain the causes of depreciation.
(e) Explain gross profit ratio.
(f) Advantages of computerized accounting.
(g) Explain meaning and features of GAAP.
14
Q.2 (a) Explain users of financial accounting details. 07
(b) Journalise the following transactions for April, 2017.
April 1- Mohan commenced business with cash Rs. 20,00,000.
April 2 - Deposited into bank Rs. 17,00,000.
April 4 - Bought furniture for office for cash Rs. 60,000.
April 13 - Goods sold to Gopal on credit Rs. 1,00,000.
April 15 - Bought goods from Ram on credit Rs. 1,10,000.
April 28 - Paid Ram in full settlement Rs. 1,06,000.
April 30 - Paid rent Rs. 20,000.
07
OR
(b) XYZ Co. purchased machinery as follows :
Date of Purchase Cost of Machine (Rs.)
1.4.2006 Rs. 60,000
1.10.2006 Rs. 40,000
1.7.2007 Rs. 20,000
On 1.1.2008 one-third of the machinery which was purchased on 1.4.2006 became
obsolete and was sold for Rs. 6,000. The machinery was to be depreciated by straight
line method at 10% p a.
Show how the Machinery Account would appear in the ledger of the Company for the
years 2006. 2007 and 2008. Assume that the accounting year of the Company ends on
31st December every year.
07
Q.3 (a) Differentiate between periodic inventory system and perpetual inventory system. 07
(b) Total current liabilities are Rs. 80,000 current ratio is 2.5:1. Liquid ratio 1.5:1. Total
current assets include stock, debtors and cash only. Cash is 2/3 of debtors. Calculate
debtors & cash.
07
OR
Q.3 (a) Explain trend analysis with hypothetical example. 07
(b) Ashok Patel runs a computer supplies company. One of the items stocked is the ?Zap?
data disk, had following inventory balance for January, 2017.
07
Page 2 of 4
January 1- Opening inventory of 40 units at a cost of Rs. 3.00 each
January 7 - Bought 20 units at a cost of Rs. 3.60 each
January 15 - Sold 36 units
January 21 - Bought 20 units at a cost of Rs. 3.75 each
January 31- Sold 25 units
Calculate closing stock on 31st January, 2017 using perpetual inventory valuation
system using FIFO and LIFO method.
Q.4 (a) Explain the significance and importance of IFRS. 07
(b) From the following Balance Sheets of Amrit Limited as at March 31, 2014 and 2015,
prepare a comparative balance sheet:
Particulars 31 March, 2015 31 March, 2014
I. Equity and Liabilities
1 Shareholders? Funds
a) Share capital 20,00,000 15,00,000
b) Reserve and surplus 13,00,000 14,00,000
2 Non-current Liabilities
Long-term borrowings 19,00,000 16,00,000
3 Current liabilities
Trade payables 3,00,000 2,00,000
Total 55,00,000 47,00,000
II. Assets
1 Non-current assets
a) Fixed assets
- Tangible assets 20,00,000 15,00,000
- Intangible assets 19,00,000 16,00,000
2 Current assets
- Inventories 13,00,000 14,00,000
- Cash and Cash Equivalents 3,00,000 2,00,000
Total 55,00,000 47,00,000
07
OR
Q.4 (a) Explain vertical format of balance sheet. 07
(b) Following are the balance sheets of a Vijay & son:
During the year Rs. 26,000 paid as dividend. The provision made for depreciation
against machinery as on 1.1.15 was Rs. 27,000 and on 31.12.15 Rs 36,000. Prepare a
cash flow statement.
Liabilities 1?1 ?15 31 ?12 ?15 Assets 1?1 ?15 31?12 ?15
Creditors 36,000 41,000 Cash 4,000 3,600
Loan from Partner ? 20,000 Debtor 35,000 38,400
Loan from Bank 30,000 25,000 Stock 25,000 22,000
Capital 1,48,000 1,49,000 Land 20,000 30,000
Building 50,000 55,000
Machinery 80
000 86,000
2,14,000 2,35,000 2,14,000 2,35,000
07
Page 3 of 4
Q.5
CASE STUDY:
From the following ledger balances of Mr. Dinesh, prepare a trading account, P&L
account for the current year ended 31st March 2013 and a balance sheet as on that
day, after making the necessary adjustments:
Dinesh?s capital Rs. 8,00,000
Dinesh?s drawings Rs. 60,000
Plant and machinery (1.4.2012) Rs. 2,00,000
Plant and machinery additions (1.7.2012) Rs. 50,000
Stock on 1.4.2012 Rs. 1,50,000
Purchases during the year Rs. 8,20,000
Carriage on purchases Rs. 20,000
Furniture and fixtures Rs. 2,00,000
Carriage on sales Rs. 25,000
Sundry expenses Rs. 8,000
Printing, stationery and postage Rs. 12,000
Rent, rates and taxes Rs. 40,000
Bad debts Rs. 5,000
Sundry creditors Rs. 95,000
Sales Rs. 12,00,000
Purchase returns Rs. 10,000
Provision for bad and doubtful debts (1.4.2012) Rs. 8,000
Commission received Rs. 16,000
Sundry debtors Rs. 52,000
Insurance charges Rs. 10,000
Salaries Rs. 2,10,000
Cash in hand Rs. 62,000
Cash at bank Rs. 2,05,000
Adjustments are required for the following:
(1) Closing stock on 31.3.2013 was valued at Rs. 1,40,000.
(2) Create provision for bad and doubtful debts at the rate of 5 per cent on sundry
debtors.
(3) Provide for depreciation on furniture & fixtures at 10 per cent per annum and on
plant and machinery at 20 per cent per annum.
(4) Insurance paid in advance is Rs. 1,000.
(5) Commission receivable in arrears is Rs. 5,000.
(6) Salaries payable are Rs. 15,000.
14
OR
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Page 1 of 4
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 1 ? EXAMINATION ? SUMMER 2018
Subject Code: 3519201 Date: 30/04/2018
Subject Name: Accounting for Managers (AFM)
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 following terms.
(a) What do you mean by financial accounting?
(b) Differentiate between accrual basis of accounting and cash basis of accounting.
(c) Explain entity concept.
(d) Explain the causes of depreciation.
(e) Explain gross profit ratio.
(f) Advantages of computerized accounting.
(g) Explain meaning and features of GAAP.
14
Q.2 (a) Explain users of financial accounting details. 07
(b) Journalise the following transactions for April, 2017.
April 1- Mohan commenced business with cash Rs. 20,00,000.
April 2 - Deposited into bank Rs. 17,00,000.
April 4 - Bought furniture for office for cash Rs. 60,000.
April 13 - Goods sold to Gopal on credit Rs. 1,00,000.
April 15 - Bought goods from Ram on credit Rs. 1,10,000.
April 28 - Paid Ram in full settlement Rs. 1,06,000.
April 30 - Paid rent Rs. 20,000.
07
OR
(b) XYZ Co. purchased machinery as follows :
Date of Purchase Cost of Machine (Rs.)
1.4.2006 Rs. 60,000
1.10.2006 Rs. 40,000
1.7.2007 Rs. 20,000
On 1.1.2008 one-third of the machinery which was purchased on 1.4.2006 became
obsolete and was sold for Rs. 6,000. The machinery was to be depreciated by straight
line method at 10% p a.
Show how the Machinery Account would appear in the ledger of the Company for the
years 2006. 2007 and 2008. Assume that the accounting year of the Company ends on
31st December every year.
07
Q.3 (a) Differentiate between periodic inventory system and perpetual inventory system. 07
(b) Total current liabilities are Rs. 80,000 current ratio is 2.5:1. Liquid ratio 1.5:1. Total
current assets include stock, debtors and cash only. Cash is 2/3 of debtors. Calculate
debtors & cash.
07
OR
Q.3 (a) Explain trend analysis with hypothetical example. 07
(b) Ashok Patel runs a computer supplies company. One of the items stocked is the ?Zap?
data disk, had following inventory balance for January, 2017.
07
Page 2 of 4
January 1- Opening inventory of 40 units at a cost of Rs. 3.00 each
January 7 - Bought 20 units at a cost of Rs. 3.60 each
January 15 - Sold 36 units
January 21 - Bought 20 units at a cost of Rs. 3.75 each
January 31- Sold 25 units
Calculate closing stock on 31st January, 2017 using perpetual inventory valuation
system using FIFO and LIFO method.
Q.4 (a) Explain the significance and importance of IFRS. 07
(b) From the following Balance Sheets of Amrit Limited as at March 31, 2014 and 2015,
prepare a comparative balance sheet:
Particulars 31 March, 2015 31 March, 2014
I. Equity and Liabilities
1 Shareholders? Funds
a) Share capital 20,00,000 15,00,000
b) Reserve and surplus 13,00,000 14,00,000
2 Non-current Liabilities
Long-term borrowings 19,00,000 16,00,000
3 Current liabilities
Trade payables 3,00,000 2,00,000
Total 55,00,000 47,00,000
II. Assets
1 Non-current assets
a) Fixed assets
- Tangible assets 20,00,000 15,00,000
- Intangible assets 19,00,000 16,00,000
2 Current assets
- Inventories 13,00,000 14,00,000
- Cash and Cash Equivalents 3,00,000 2,00,000
Total 55,00,000 47,00,000
07
OR
Q.4 (a) Explain vertical format of balance sheet. 07
(b) Following are the balance sheets of a Vijay & son:
During the year Rs. 26,000 paid as dividend. The provision made for depreciation
against machinery as on 1.1.15 was Rs. 27,000 and on 31.12.15 Rs 36,000. Prepare a
cash flow statement.
Liabilities 1?1 ?15 31 ?12 ?15 Assets 1?1 ?15 31?12 ?15
Creditors 36,000 41,000 Cash 4,000 3,600
Loan from Partner ? 20,000 Debtor 35,000 38,400
Loan from Bank 30,000 25,000 Stock 25,000 22,000
Capital 1,48,000 1,49,000 Land 20,000 30,000
Building 50,000 55,000
Machinery 80
000 86,000
2,14,000 2,35,000 2,14,000 2,35,000
07
Page 3 of 4
Q.5
CASE STUDY:
From the following ledger balances of Mr. Dinesh, prepare a trading account, P&L
account for the current year ended 31st March 2013 and a balance sheet as on that
day, after making the necessary adjustments:
Dinesh?s capital Rs. 8,00,000
Dinesh?s drawings Rs. 60,000
Plant and machinery (1.4.2012) Rs. 2,00,000
Plant and machinery additions (1.7.2012) Rs. 50,000
Stock on 1.4.2012 Rs. 1,50,000
Purchases during the year Rs. 8,20,000
Carriage on purchases Rs. 20,000
Furniture and fixtures Rs. 2,00,000
Carriage on sales Rs. 25,000
Sundry expenses Rs. 8,000
Printing, stationery and postage Rs. 12,000
Rent, rates and taxes Rs. 40,000
Bad debts Rs. 5,000
Sundry creditors Rs. 95,000
Sales Rs. 12,00,000
Purchase returns Rs. 10,000
Provision for bad and doubtful debts (1.4.2012) Rs. 8,000
Commission received Rs. 16,000
Sundry debtors Rs. 52,000
Insurance charges Rs. 10,000
Salaries Rs. 2,10,000
Cash in hand Rs. 62,000
Cash at bank Rs. 2,05,000
Adjustments are required for the following:
(1) Closing stock on 31.3.2013 was valued at Rs. 1,40,000.
(2) Create provision for bad and doubtful debts at the rate of 5 per cent on sundry
debtors.
(3) Provide for depreciation on furniture & fixtures at 10 per cent per annum and on
plant and machinery at 20 per cent per annum.
(4) Insurance paid in advance is Rs. 1,000.
(5) Commission receivable in arrears is Rs. 5,000.
(6) Salaries payable are Rs. 15,000.
14
OR
Page 4 of 4
Q.5
CASE STUDY:
You are required to prepare vertical format of P&L, balance sheet and note of
accounts from the following trial balance of Mehul Company Ltd. for the year ended
31st March, 2012
Mehul Company Ltd. Trial Balance as at 31st March, 2012
Particulars Dr. (Rs.) Cr. (Rs.)
Stock 68,000
Furniture & Fixtures 50,000
Discount 4,000
Loan to Directors 8,000
Advertisement 2,000
Bad Debts 3,500
Commission 12,000
Purchases 231,900
Plant and Machinery 86,000
Rentals 2,500
Current Account 4,500
Cash 800
Interest on Bank Loan 11,600
Preliminary Expenses 1,000
Wages 90,000
Consumables 8,400
Freehold Land 1,54,600
Tools and Equipments 24,500
Goodwill 26,500
Debtors 28,700
Bills Receivables 15,300
Dealer Aids 2,100
Transit Insurance 3,000
Trade Expenses 7,200
Distribution Freight 5,400
Debentures Interest 2,000
Equity Shares Capital (Shares of Rs.10 each) 2,50,000
11% Debentures 50,000
Bank Loans 64,500
Bills Payable 12,500
Creditors 15,600
Sales 4,26,800
Rent Received 4,600
Transfer Fees 1,000
Profit & Loss Appropriation Account 13,900
Provision for Depreciation on Plant &
Machinery 14,600
8,53,500 8,53,500
Additional Information: 1) Closing stock as on 31st march, 2012, Rs.82,300.
2) Depreciation on furniture & fixtures @5%, Freehold land @2% and Tools and
Equipments @5% to be provided.
14
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This post was last modified on 19 February 2020