Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2016 Summer 1st Sem 2810001 Accounting For Managers Afm Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 01? ? EXAMINATION ? SUMMER 2016
Subject Code: 2810001 Date: 11/05/2016
Subject Name: Accounting For Managers (AFM)
Time: 10:30 am ? 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.1(a)
From the four alternative answers given against each of the following cases,
indicate the correct answer:(just state A, B, C or D)
06
A company had Current Assets of Rs. 4, 00,000 and Current Liabilities of Rs. 1,
00,000. Afterwards it purchased goods for Rs. 50,000 on credit. Calculate the
Current Ratio after the purchase.
1.
A. 1:3 B. 3:1
C. 4:1 D. 1:4
2.
Goods drawn by the proprietor from the business for personal use?????..
A. Increases capital and decreases
assets.
B. Increases assets and decreases
expenses.
C. Decreases capital and decreases
assets.
D. Increases capital and increases
assets.
3.
Outstanding expenses are related to????.
A. Nominal account. B. Personal account.
C. Representative personal account. D. Artificial personal account.
4.
Profit or loss on depreciation fund investment is transferred to:
A. Depreciation Fund A/c. B. Asset A/c.
C. Profit or Loss A/c. D. Bank A/c.
5.
In case of Annuity Method, the amount of depreciation is:
A. Increasing every year. B. Fixed for all the year.
C. Decreasing every year. D. None of these.
6.
Compound journal entry contains?????.
A. More than one debit entry only. B. More than one credit entry only.
C. More than one debit entry or more
than one credit entry or both.
D. None of these.
Q.1 (b) Define the following terms:
(i) Accounting Standards.
(ii) IFRS.
(iii) Provisions.
(iv) GAAP.
04
Q.1 (c) What do you mean by ?Fund Flow Statement?? Discuss the importance of
Fund Flow Statement.
04
Q.2 (a) Who are the users of accounting information, and why do the users need
accounting information? How this information helpful to the users?
07
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Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 01? ? EXAMINATION ? SUMMER 2016
Subject Code: 2810001 Date: 11/05/2016
Subject Name: Accounting For Managers (AFM)
Time: 10:30 am ? 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.1(a)
From the four alternative answers given against each of the following cases,
indicate the correct answer:(just state A, B, C or D)
06
A company had Current Assets of Rs. 4, 00,000 and Current Liabilities of Rs. 1,
00,000. Afterwards it purchased goods for Rs. 50,000 on credit. Calculate the
Current Ratio after the purchase.
1.
A. 1:3 B. 3:1
C. 4:1 D. 1:4
2.
Goods drawn by the proprietor from the business for personal use?????..
A. Increases capital and decreases
assets.
B. Increases assets and decreases
expenses.
C. Decreases capital and decreases
assets.
D. Increases capital and increases
assets.
3.
Outstanding expenses are related to????.
A. Nominal account. B. Personal account.
C. Representative personal account. D. Artificial personal account.
4.
Profit or loss on depreciation fund investment is transferred to:
A. Depreciation Fund A/c. B. Asset A/c.
C. Profit or Loss A/c. D. Bank A/c.
5.
In case of Annuity Method, the amount of depreciation is:
A. Increasing every year. B. Fixed for all the year.
C. Decreasing every year. D. None of these.
6.
Compound journal entry contains?????.
A. More than one debit entry only. B. More than one credit entry only.
C. More than one debit entry or more
than one credit entry or both.
D. None of these.
Q.1 (b) Define the following terms:
(i) Accounting Standards.
(ii) IFRS.
(iii) Provisions.
(iv) GAAP.
04
Q.1 (c) What do you mean by ?Fund Flow Statement?? Discuss the importance of
Fund Flow Statement.
04
Q.2 (a) Who are the users of accounting information, and why do the users need
accounting information? How this information helpful to the users?
07
2
(b) On the basis of following informations, calculate the following ratios:
(i) Net Profit Ratio
(ii) Debt Equity Ratio
(iii) Quick Ratio
Informations:
Particulars Amount (in Rs.)
Paid up Capital 20,00,000
Capital Reserve 2,00,000
9 % Debentures 8,00,000
Net Sales 14,00,000
Gross Profit 8,00,000
Indirect Expenses 2,00,000
Current Assets 4,00,000
Current Liabilities 3,00,000
Opening Stock 50,000
Closing Stock is 20 % more than Opening Stock.
07
OR
(b) What is Balance Sheet? Show the format of Balance Sheet in vertical form
under revised schedule VI of Companies Act, 1956 with imaginary figures.
07
Q.3 (a) What do you mean by the term ?depreciation?? What are its causes? Why do
firms provide depreciation?
07
(b) Rohan purchases a plant on 01.04.2007 for a sum of Rs. 2, 00,000 having a
useful life of five years. It is estimated that the plant will have a scrap value
of Rs. 32,000 at the end of its useful life. Rohan decides to charge
depreciation according to depreciation fund method. The depreciation fund
investments are expected to earn interest @ 5 % p.a. Sinking fund table
shows that Re. 0.180975 if invested yearly at 5 % p.a. produces Re. 1 at the
end of five years. The investments are sold at the end of fifth year for a sum
of Rs. 1, 30,000 and the scrap realized Rs. 34,000.
You are required to prepare the necessary accounts in the books of
Rohan.
07
OR
Q.3 (a) What do you understand by Trend Analysis? Explain in brief with
hypothetical example.
07
(b) From the following Balance Sheet of Shivam Ltd. on 31
st
December 2012
and 2013, you are required to prepare:
(1) Statement of Changes in Working Capital; and
(2) Funds Flow Statement.
07
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Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 01? ? EXAMINATION ? SUMMER 2016
Subject Code: 2810001 Date: 11/05/2016
Subject Name: Accounting For Managers (AFM)
Time: 10:30 am ? 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.1(a)
From the four alternative answers given against each of the following cases,
indicate the correct answer:(just state A, B, C or D)
06
A company had Current Assets of Rs. 4, 00,000 and Current Liabilities of Rs. 1,
00,000. Afterwards it purchased goods for Rs. 50,000 on credit. Calculate the
Current Ratio after the purchase.
1.
A. 1:3 B. 3:1
C. 4:1 D. 1:4
2.
Goods drawn by the proprietor from the business for personal use?????..
A. Increases capital and decreases
assets.
B. Increases assets and decreases
expenses.
C. Decreases capital and decreases
assets.
D. Increases capital and increases
assets.
3.
Outstanding expenses are related to????.
A. Nominal account. B. Personal account.
C. Representative personal account. D. Artificial personal account.
4.
Profit or loss on depreciation fund investment is transferred to:
A. Depreciation Fund A/c. B. Asset A/c.
C. Profit or Loss A/c. D. Bank A/c.
5.
In case of Annuity Method, the amount of depreciation is:
A. Increasing every year. B. Fixed for all the year.
C. Decreasing every year. D. None of these.
6.
Compound journal entry contains?????.
A. More than one debit entry only. B. More than one credit entry only.
C. More than one debit entry or more
than one credit entry or both.
D. None of these.
Q.1 (b) Define the following terms:
(i) Accounting Standards.
(ii) IFRS.
(iii) Provisions.
(iv) GAAP.
04
Q.1 (c) What do you mean by ?Fund Flow Statement?? Discuss the importance of
Fund Flow Statement.
04
Q.2 (a) Who are the users of accounting information, and why do the users need
accounting information? How this information helpful to the users?
07
2
(b) On the basis of following informations, calculate the following ratios:
(i) Net Profit Ratio
(ii) Debt Equity Ratio
(iii) Quick Ratio
Informations:
Particulars Amount (in Rs.)
Paid up Capital 20,00,000
Capital Reserve 2,00,000
9 % Debentures 8,00,000
Net Sales 14,00,000
Gross Profit 8,00,000
Indirect Expenses 2,00,000
Current Assets 4,00,000
Current Liabilities 3,00,000
Opening Stock 50,000
Closing Stock is 20 % more than Opening Stock.
07
OR
(b) What is Balance Sheet? Show the format of Balance Sheet in vertical form
under revised schedule VI of Companies Act, 1956 with imaginary figures.
07
Q.3 (a) What do you mean by the term ?depreciation?? What are its causes? Why do
firms provide depreciation?
07
(b) Rohan purchases a plant on 01.04.2007 for a sum of Rs. 2, 00,000 having a
useful life of five years. It is estimated that the plant will have a scrap value
of Rs. 32,000 at the end of its useful life. Rohan decides to charge
depreciation according to depreciation fund method. The depreciation fund
investments are expected to earn interest @ 5 % p.a. Sinking fund table
shows that Re. 0.180975 if invested yearly at 5 % p.a. produces Re. 1 at the
end of five years. The investments are sold at the end of fifth year for a sum
of Rs. 1, 30,000 and the scrap realized Rs. 34,000.
You are required to prepare the necessary accounts in the books of
Rohan.
07
OR
Q.3 (a) What do you understand by Trend Analysis? Explain in brief with
hypothetical example.
07
(b) From the following Balance Sheet of Shivam Ltd. on 31
st
December 2012
and 2013, you are required to prepare:
(1) Statement of Changes in Working Capital; and
(2) Funds Flow Statement.
07
3
Liabilities 31.12.13 31.12.12 Assets 31.12.13 31.12.12
Share
Capital
4,50,000 4,50,000 Plant and
Machinery
3,20,000 4,00,000
General
Reserve
3,10,000
3,00,000
Investments
60,000 50,000
P & L A/c 35,000 30,000 Closing
Stock
1,95,000
2,00,000
Capital
Reserve
33,000 26,000
Bills
Receivable
15,000 40,000
Debentures
2,70,000
- Sundry
Debtors
4,55,000 2,00,000
Creditors 75,000
90,000 Cash at
Bank
1,97,000
1,59,000
Bills
Payable
59,000 78,000
Provision
for
Taxation
10,000
75,000
12,42,000 10,49,000
12,42,000 10,49,000
Other details are as follows:
(1) During the year investments worth Rs. 8,000 were sold at a price of
Rs. 8,500 and new investments worth Rs. 18,000 were purchased.
(2) Net profit of the year was Rs. 62,000 after providing for depreciation
of Rs. 70,000 on Plant and Machinery and Rs. 10,000 provision for
taxation.
(3) During the year Plant and Machinery worth Rs. 10,000 were sold at a
price of Rs. 12,000 and the profit on the same was credited to Profit
and Loss Account.
(4) During the year Rs. 40,000 were paid as Dividend.
Q.4 (a) What are the various accounting concepts? Explain any four of them. 07
(b) From the following Income Statement of Malhotra Trading Company for the
year ending 31
st
March, 2012 and 2013, you are required to prepare a
Comparative Income Statement and give your comments:
07
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Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 01? ? EXAMINATION ? SUMMER 2016
Subject Code: 2810001 Date: 11/05/2016
Subject Name: Accounting For Managers (AFM)
Time: 10:30 am ? 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.1(a)
From the four alternative answers given against each of the following cases,
indicate the correct answer:(just state A, B, C or D)
06
A company had Current Assets of Rs. 4, 00,000 and Current Liabilities of Rs. 1,
00,000. Afterwards it purchased goods for Rs. 50,000 on credit. Calculate the
Current Ratio after the purchase.
1.
A. 1:3 B. 3:1
C. 4:1 D. 1:4
2.
Goods drawn by the proprietor from the business for personal use?????..
A. Increases capital and decreases
assets.
B. Increases assets and decreases
expenses.
C. Decreases capital and decreases
assets.
D. Increases capital and increases
assets.
3.
Outstanding expenses are related to????.
A. Nominal account. B. Personal account.
C. Representative personal account. D. Artificial personal account.
4.
Profit or loss on depreciation fund investment is transferred to:
A. Depreciation Fund A/c. B. Asset A/c.
C. Profit or Loss A/c. D. Bank A/c.
5.
In case of Annuity Method, the amount of depreciation is:
A. Increasing every year. B. Fixed for all the year.
C. Decreasing every year. D. None of these.
6.
Compound journal entry contains?????.
A. More than one debit entry only. B. More than one credit entry only.
C. More than one debit entry or more
than one credit entry or both.
D. None of these.
Q.1 (b) Define the following terms:
(i) Accounting Standards.
(ii) IFRS.
(iii) Provisions.
(iv) GAAP.
04
Q.1 (c) What do you mean by ?Fund Flow Statement?? Discuss the importance of
Fund Flow Statement.
04
Q.2 (a) Who are the users of accounting information, and why do the users need
accounting information? How this information helpful to the users?
07
2
(b) On the basis of following informations, calculate the following ratios:
(i) Net Profit Ratio
(ii) Debt Equity Ratio
(iii) Quick Ratio
Informations:
Particulars Amount (in Rs.)
Paid up Capital 20,00,000
Capital Reserve 2,00,000
9 % Debentures 8,00,000
Net Sales 14,00,000
Gross Profit 8,00,000
Indirect Expenses 2,00,000
Current Assets 4,00,000
Current Liabilities 3,00,000
Opening Stock 50,000
Closing Stock is 20 % more than Opening Stock.
07
OR
(b) What is Balance Sheet? Show the format of Balance Sheet in vertical form
under revised schedule VI of Companies Act, 1956 with imaginary figures.
07
Q.3 (a) What do you mean by the term ?depreciation?? What are its causes? Why do
firms provide depreciation?
07
(b) Rohan purchases a plant on 01.04.2007 for a sum of Rs. 2, 00,000 having a
useful life of five years. It is estimated that the plant will have a scrap value
of Rs. 32,000 at the end of its useful life. Rohan decides to charge
depreciation according to depreciation fund method. The depreciation fund
investments are expected to earn interest @ 5 % p.a. Sinking fund table
shows that Re. 0.180975 if invested yearly at 5 % p.a. produces Re. 1 at the
end of five years. The investments are sold at the end of fifth year for a sum
of Rs. 1, 30,000 and the scrap realized Rs. 34,000.
You are required to prepare the necessary accounts in the books of
Rohan.
07
OR
Q.3 (a) What do you understand by Trend Analysis? Explain in brief with
hypothetical example.
07
(b) From the following Balance Sheet of Shivam Ltd. on 31
st
December 2012
and 2013, you are required to prepare:
(1) Statement of Changes in Working Capital; and
(2) Funds Flow Statement.
07
3
Liabilities 31.12.13 31.12.12 Assets 31.12.13 31.12.12
Share
Capital
4,50,000 4,50,000 Plant and
Machinery
3,20,000 4,00,000
General
Reserve
3,10,000
3,00,000
Investments
60,000 50,000
P & L A/c 35,000 30,000 Closing
Stock
1,95,000
2,00,000
Capital
Reserve
33,000 26,000
Bills
Receivable
15,000 40,000
Debentures
2,70,000
- Sundry
Debtors
4,55,000 2,00,000
Creditors 75,000
90,000 Cash at
Bank
1,97,000
1,59,000
Bills
Payable
59,000 78,000
Provision
for
Taxation
10,000
75,000
12,42,000 10,49,000
12,42,000 10,49,000
Other details are as follows:
(1) During the year investments worth Rs. 8,000 were sold at a price of
Rs. 8,500 and new investments worth Rs. 18,000 were purchased.
(2) Net profit of the year was Rs. 62,000 after providing for depreciation
of Rs. 70,000 on Plant and Machinery and Rs. 10,000 provision for
taxation.
(3) During the year Plant and Machinery worth Rs. 10,000 were sold at a
price of Rs. 12,000 and the profit on the same was credited to Profit
and Loss Account.
(4) During the year Rs. 40,000 were paid as Dividend.
Q.4 (a) What are the various accounting concepts? Explain any four of them. 07
(b) From the following Income Statement of Malhotra Trading Company for the
year ending 31
st
March, 2012 and 2013, you are required to prepare a
Comparative Income Statement and give your comments:
07
4
Income Statement
For the year ended 2012 and 2013
Particulars 31.03.2012
Rs.
31.03.2013
Rs.
Revenue From Operations 6,00,000 7,20,000
Add: Dividend Received 30.000 90,000
Total Revenue 6,30,000 8,10,000
Less: Cost of Goods Sold 4,20,000 5,60,000
Administration Expenses 50,000 66,000
Selling and Dist. Expenses 25,000 23,000
Interest on Debentures 12,000 12,000
Loss on Sale of Plant 6,000 4,000
Provision for Taxation 40,000 48,000
Net Profit 77,000 97,000
OR
Q.4 (a) Name AS- 9, AS-10 and AS-26. Explain any one in detail. 07
(b) From the following information, you are required to calculate the value of
Closing Inventory and Cost of Goods Sold assuming (a) Perpetual Inventory
System and (b) Periodic Inventory System under FIFO method.
Date Transactions Units Price Per Unit
(Rs.)
02/01/2013 Opening balance brought
forward
100 10
09/01/2013 Purchases 400 15
14/01/2013 Sales 300 -
25/01/2013 Purchases 500 20
29/01/2013 Sales 400 -
07
Q.5 Mr. Tushar decided to start a computer business. For this purpose he built the
first floor of his house at a cost of Rs. 2, 00,000 and invested a further sum of
Rs. 3, 50,000 in this business.
He wanted to start with 12 computers costing Rs. 40,000 each. He
approached ICICI Bank and secured a loan to the extent of 75 % of the cost
of computers. It was agreed that the loan will be repaid in four annual
instalments are as follows:
At the end of First Year : Rs. 90,000 + Rs. 36,000 for interest
At the end of Second Year : Rs. 90,000 + Rs. 27,000 for interest
At the end of Third Year : Rs. 90,000 + Rs. 18,000 for interest
At the end of Fourth Year : Rs. 90,000 + Rs. 9,000 for interest
He started business on 1
st
April, 2002. On the same date he deposited
Rs. 3, 30,000 in the Bank. He purchased Computers and paid 25 % of the
value of computers from his bank and Rs. 3, 60, 000 out of bank loan
availed. He deposited Rs. 10,000 for the electric connection with the
Electricity Board and also deposited Rs. 1, 50,000 with the VSNL for
internet and telephone connection.
He spent Rs. 40,000 for getting the Computer Caf? furnished and also
spent Rs. 6,000 in getting the pamphlets printed and distributed.
All payments were to be made by cheques and all the receipts were to be
deposited in the bank on the same day.
At the end of the year, the results were:
14
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1
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 01? ? EXAMINATION ? SUMMER 2016
Subject Code: 2810001 Date: 11/05/2016
Subject Name: Accounting For Managers (AFM)
Time: 10:30 am ? 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.1(a)
From the four alternative answers given against each of the following cases,
indicate the correct answer:(just state A, B, C or D)
06
A company had Current Assets of Rs. 4, 00,000 and Current Liabilities of Rs. 1,
00,000. Afterwards it purchased goods for Rs. 50,000 on credit. Calculate the
Current Ratio after the purchase.
1.
A. 1:3 B. 3:1
C. 4:1 D. 1:4
2.
Goods drawn by the proprietor from the business for personal use?????..
A. Increases capital and decreases
assets.
B. Increases assets and decreases
expenses.
C. Decreases capital and decreases
assets.
D. Increases capital and increases
assets.
3.
Outstanding expenses are related to????.
A. Nominal account. B. Personal account.
C. Representative personal account. D. Artificial personal account.
4.
Profit or loss on depreciation fund investment is transferred to:
A. Depreciation Fund A/c. B. Asset A/c.
C. Profit or Loss A/c. D. Bank A/c.
5.
In case of Annuity Method, the amount of depreciation is:
A. Increasing every year. B. Fixed for all the year.
C. Decreasing every year. D. None of these.
6.
Compound journal entry contains?????.
A. More than one debit entry only. B. More than one credit entry only.
C. More than one debit entry or more
than one credit entry or both.
D. None of these.
Q.1 (b) Define the following terms:
(i) Accounting Standards.
(ii) IFRS.
(iii) Provisions.
(iv) GAAP.
04
Q.1 (c) What do you mean by ?Fund Flow Statement?? Discuss the importance of
Fund Flow Statement.
04
Q.2 (a) Who are the users of accounting information, and why do the users need
accounting information? How this information helpful to the users?
07
2
(b) On the basis of following informations, calculate the following ratios:
(i) Net Profit Ratio
(ii) Debt Equity Ratio
(iii) Quick Ratio
Informations:
Particulars Amount (in Rs.)
Paid up Capital 20,00,000
Capital Reserve 2,00,000
9 % Debentures 8,00,000
Net Sales 14,00,000
Gross Profit 8,00,000
Indirect Expenses 2,00,000
Current Assets 4,00,000
Current Liabilities 3,00,000
Opening Stock 50,000
Closing Stock is 20 % more than Opening Stock.
07
OR
(b) What is Balance Sheet? Show the format of Balance Sheet in vertical form
under revised schedule VI of Companies Act, 1956 with imaginary figures.
07
Q.3 (a) What do you mean by the term ?depreciation?? What are its causes? Why do
firms provide depreciation?
07
(b) Rohan purchases a plant on 01.04.2007 for a sum of Rs. 2, 00,000 having a
useful life of five years. It is estimated that the plant will have a scrap value
of Rs. 32,000 at the end of its useful life. Rohan decides to charge
depreciation according to depreciation fund method. The depreciation fund
investments are expected to earn interest @ 5 % p.a. Sinking fund table
shows that Re. 0.180975 if invested yearly at 5 % p.a. produces Re. 1 at the
end of five years. The investments are sold at the end of fifth year for a sum
of Rs. 1, 30,000 and the scrap realized Rs. 34,000.
You are required to prepare the necessary accounts in the books of
Rohan.
07
OR
Q.3 (a) What do you understand by Trend Analysis? Explain in brief with
hypothetical example.
07
(b) From the following Balance Sheet of Shivam Ltd. on 31
st
December 2012
and 2013, you are required to prepare:
(1) Statement of Changes in Working Capital; and
(2) Funds Flow Statement.
07
3
Liabilities 31.12.13 31.12.12 Assets 31.12.13 31.12.12
Share
Capital
4,50,000 4,50,000 Plant and
Machinery
3,20,000 4,00,000
General
Reserve
3,10,000
3,00,000
Investments
60,000 50,000
P & L A/c 35,000 30,000 Closing
Stock
1,95,000
2,00,000
Capital
Reserve
33,000 26,000
Bills
Receivable
15,000 40,000
Debentures
2,70,000
- Sundry
Debtors
4,55,000 2,00,000
Creditors 75,000
90,000 Cash at
Bank
1,97,000
1,59,000
Bills
Payable
59,000 78,000
Provision
for
Taxation
10,000
75,000
12,42,000 10,49,000
12,42,000 10,49,000
Other details are as follows:
(1) During the year investments worth Rs. 8,000 were sold at a price of
Rs. 8,500 and new investments worth Rs. 18,000 were purchased.
(2) Net profit of the year was Rs. 62,000 after providing for depreciation
of Rs. 70,000 on Plant and Machinery and Rs. 10,000 provision for
taxation.
(3) During the year Plant and Machinery worth Rs. 10,000 were sold at a
price of Rs. 12,000 and the profit on the same was credited to Profit
and Loss Account.
(4) During the year Rs. 40,000 were paid as Dividend.
Q.4 (a) What are the various accounting concepts? Explain any four of them. 07
(b) From the following Income Statement of Malhotra Trading Company for the
year ending 31
st
March, 2012 and 2013, you are required to prepare a
Comparative Income Statement and give your comments:
07
4
Income Statement
For the year ended 2012 and 2013
Particulars 31.03.2012
Rs.
31.03.2013
Rs.
Revenue From Operations 6,00,000 7,20,000
Add: Dividend Received 30.000 90,000
Total Revenue 6,30,000 8,10,000
Less: Cost of Goods Sold 4,20,000 5,60,000
Administration Expenses 50,000 66,000
Selling and Dist. Expenses 25,000 23,000
Interest on Debentures 12,000 12,000
Loss on Sale of Plant 6,000 4,000
Provision for Taxation 40,000 48,000
Net Profit 77,000 97,000
OR
Q.4 (a) Name AS- 9, AS-10 and AS-26. Explain any one in detail. 07
(b) From the following information, you are required to calculate the value of
Closing Inventory and Cost of Goods Sold assuming (a) Perpetual Inventory
System and (b) Periodic Inventory System under FIFO method.
Date Transactions Units Price Per Unit
(Rs.)
02/01/2013 Opening balance brought
forward
100 10
09/01/2013 Purchases 400 15
14/01/2013 Sales 300 -
25/01/2013 Purchases 500 20
29/01/2013 Sales 400 -
07
Q.5 Mr. Tushar decided to start a computer business. For this purpose he built the
first floor of his house at a cost of Rs. 2, 00,000 and invested a further sum of
Rs. 3, 50,000 in this business.
He wanted to start with 12 computers costing Rs. 40,000 each. He
approached ICICI Bank and secured a loan to the extent of 75 % of the cost
of computers. It was agreed that the loan will be repaid in four annual
instalments are as follows:
At the end of First Year : Rs. 90,000 + Rs. 36,000 for interest
At the end of Second Year : Rs. 90,000 + Rs. 27,000 for interest
At the end of Third Year : Rs. 90,000 + Rs. 18,000 for interest
At the end of Fourth Year : Rs. 90,000 + Rs. 9,000 for interest
He started business on 1
st
April, 2002. On the same date he deposited
Rs. 3, 30,000 in the Bank. He purchased Computers and paid 25 % of the
value of computers from his bank and Rs. 3, 60, 000 out of bank loan
availed. He deposited Rs. 10,000 for the electric connection with the
Electricity Board and also deposited Rs. 1, 50,000 with the VSNL for
internet and telephone connection.
He spent Rs. 40,000 for getting the Computer Caf? furnished and also
spent Rs. 6,000 in getting the pamphlets printed and distributed.
All payments were to be made by cheques and all the receipts were to be
deposited in the bank on the same day.
At the end of the year, the results were:
14
5
Particulars Amount
(in Rs.)
Purchases of Computer stationery like DVDs, CDs
etc.
92,000
Revenue from fees received from students of
Computer classes
2,70,000
Revenue on Account of Internet Facility 2,20,000
Revenue from sale of Computer Stationery 1,60,000
Wages paid to servant 12,000
Electricity Charges 48,000
Telephone Charges 73,000
Entertainment Expenses 7,000
General Expenses 5,200
He withdrew Rs. 5,000 by cheque each month for his personal expenses
and duly paid the bank loan.
You are required to pass the necessary journal entries in the books of Mr.
Tushar.
OR
Q.5 From the following figures extracted from the books of Mr. Rohit, you are
required to prepare a Trading and Profit and Loss Account for the year ended
31
st
March, 2014 and a Balance Sheet as on that date after making the
necessary adjustments:
Particulars Amount
(in Rs.)
Drawings 6,000
Sundry Debtors 38,200
Purchases 1,34,916
Return Inward 15,642
Bills Receivable 13,764
5 % Loan on Mortgage (01.04.2013) 17,000
Interest on Loan 400
Cash in Hand 6,100
Stock (01.04.2013) 11,678
Capital 60,000
Sundry Creditors 16,802
Sales 2,22,486
Bills Payable 5,428
Motor Vehicle 18,000
14
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1
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 01? ? EXAMINATION ? SUMMER 2016
Subject Code: 2810001 Date: 11/05/2016
Subject Name: Accounting For Managers (AFM)
Time: 10:30 am ? 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.1(a)
From the four alternative answers given against each of the following cases,
indicate the correct answer:(just state A, B, C or D)
06
A company had Current Assets of Rs. 4, 00,000 and Current Liabilities of Rs. 1,
00,000. Afterwards it purchased goods for Rs. 50,000 on credit. Calculate the
Current Ratio after the purchase.
1.
A. 1:3 B. 3:1
C. 4:1 D. 1:4
2.
Goods drawn by the proprietor from the business for personal use?????..
A. Increases capital and decreases
assets.
B. Increases assets and decreases
expenses.
C. Decreases capital and decreases
assets.
D. Increases capital and increases
assets.
3.
Outstanding expenses are related to????.
A. Nominal account. B. Personal account.
C. Representative personal account. D. Artificial personal account.
4.
Profit or loss on depreciation fund investment is transferred to:
A. Depreciation Fund A/c. B. Asset A/c.
C. Profit or Loss A/c. D. Bank A/c.
5.
In case of Annuity Method, the amount of depreciation is:
A. Increasing every year. B. Fixed for all the year.
C. Decreasing every year. D. None of these.
6.
Compound journal entry contains?????.
A. More than one debit entry only. B. More than one credit entry only.
C. More than one debit entry or more
than one credit entry or both.
D. None of these.
Q.1 (b) Define the following terms:
(i) Accounting Standards.
(ii) IFRS.
(iii) Provisions.
(iv) GAAP.
04
Q.1 (c) What do you mean by ?Fund Flow Statement?? Discuss the importance of
Fund Flow Statement.
04
Q.2 (a) Who are the users of accounting information, and why do the users need
accounting information? How this information helpful to the users?
07
2
(b) On the basis of following informations, calculate the following ratios:
(i) Net Profit Ratio
(ii) Debt Equity Ratio
(iii) Quick Ratio
Informations:
Particulars Amount (in Rs.)
Paid up Capital 20,00,000
Capital Reserve 2,00,000
9 % Debentures 8,00,000
Net Sales 14,00,000
Gross Profit 8,00,000
Indirect Expenses 2,00,000
Current Assets 4,00,000
Current Liabilities 3,00,000
Opening Stock 50,000
Closing Stock is 20 % more than Opening Stock.
07
OR
(b) What is Balance Sheet? Show the format of Balance Sheet in vertical form
under revised schedule VI of Companies Act, 1956 with imaginary figures.
07
Q.3 (a) What do you mean by the term ?depreciation?? What are its causes? Why do
firms provide depreciation?
07
(b) Rohan purchases a plant on 01.04.2007 for a sum of Rs. 2, 00,000 having a
useful life of five years. It is estimated that the plant will have a scrap value
of Rs. 32,000 at the end of its useful life. Rohan decides to charge
depreciation according to depreciation fund method. The depreciation fund
investments are expected to earn interest @ 5 % p.a. Sinking fund table
shows that Re. 0.180975 if invested yearly at 5 % p.a. produces Re. 1 at the
end of five years. The investments are sold at the end of fifth year for a sum
of Rs. 1, 30,000 and the scrap realized Rs. 34,000.
You are required to prepare the necessary accounts in the books of
Rohan.
07
OR
Q.3 (a) What do you understand by Trend Analysis? Explain in brief with
hypothetical example.
07
(b) From the following Balance Sheet of Shivam Ltd. on 31
st
December 2012
and 2013, you are required to prepare:
(1) Statement of Changes in Working Capital; and
(2) Funds Flow Statement.
07
3
Liabilities 31.12.13 31.12.12 Assets 31.12.13 31.12.12
Share
Capital
4,50,000 4,50,000 Plant and
Machinery
3,20,000 4,00,000
General
Reserve
3,10,000
3,00,000
Investments
60,000 50,000
P & L A/c 35,000 30,000 Closing
Stock
1,95,000
2,00,000
Capital
Reserve
33,000 26,000
Bills
Receivable
15,000 40,000
Debentures
2,70,000
- Sundry
Debtors
4,55,000 2,00,000
Creditors 75,000
90,000 Cash at
Bank
1,97,000
1,59,000
Bills
Payable
59,000 78,000
Provision
for
Taxation
10,000
75,000
12,42,000 10,49,000
12,42,000 10,49,000
Other details are as follows:
(1) During the year investments worth Rs. 8,000 were sold at a price of
Rs. 8,500 and new investments worth Rs. 18,000 were purchased.
(2) Net profit of the year was Rs. 62,000 after providing for depreciation
of Rs. 70,000 on Plant and Machinery and Rs. 10,000 provision for
taxation.
(3) During the year Plant and Machinery worth Rs. 10,000 were sold at a
price of Rs. 12,000 and the profit on the same was credited to Profit
and Loss Account.
(4) During the year Rs. 40,000 were paid as Dividend.
Q.4 (a) What are the various accounting concepts? Explain any four of them. 07
(b) From the following Income Statement of Malhotra Trading Company for the
year ending 31
st
March, 2012 and 2013, you are required to prepare a
Comparative Income Statement and give your comments:
07
4
Income Statement
For the year ended 2012 and 2013
Particulars 31.03.2012
Rs.
31.03.2013
Rs.
Revenue From Operations 6,00,000 7,20,000
Add: Dividend Received 30.000 90,000
Total Revenue 6,30,000 8,10,000
Less: Cost of Goods Sold 4,20,000 5,60,000
Administration Expenses 50,000 66,000
Selling and Dist. Expenses 25,000 23,000
Interest on Debentures 12,000 12,000
Loss on Sale of Plant 6,000 4,000
Provision for Taxation 40,000 48,000
Net Profit 77,000 97,000
OR
Q.4 (a) Name AS- 9, AS-10 and AS-26. Explain any one in detail. 07
(b) From the following information, you are required to calculate the value of
Closing Inventory and Cost of Goods Sold assuming (a) Perpetual Inventory
System and (b) Periodic Inventory System under FIFO method.
Date Transactions Units Price Per Unit
(Rs.)
02/01/2013 Opening balance brought
forward
100 10
09/01/2013 Purchases 400 15
14/01/2013 Sales 300 -
25/01/2013 Purchases 500 20
29/01/2013 Sales 400 -
07
Q.5 Mr. Tushar decided to start a computer business. For this purpose he built the
first floor of his house at a cost of Rs. 2, 00,000 and invested a further sum of
Rs. 3, 50,000 in this business.
He wanted to start with 12 computers costing Rs. 40,000 each. He
approached ICICI Bank and secured a loan to the extent of 75 % of the cost
of computers. It was agreed that the loan will be repaid in four annual
instalments are as follows:
At the end of First Year : Rs. 90,000 + Rs. 36,000 for interest
At the end of Second Year : Rs. 90,000 + Rs. 27,000 for interest
At the end of Third Year : Rs. 90,000 + Rs. 18,000 for interest
At the end of Fourth Year : Rs. 90,000 + Rs. 9,000 for interest
He started business on 1
st
April, 2002. On the same date he deposited
Rs. 3, 30,000 in the Bank. He purchased Computers and paid 25 % of the
value of computers from his bank and Rs. 3, 60, 000 out of bank loan
availed. He deposited Rs. 10,000 for the electric connection with the
Electricity Board and also deposited Rs. 1, 50,000 with the VSNL for
internet and telephone connection.
He spent Rs. 40,000 for getting the Computer Caf? furnished and also
spent Rs. 6,000 in getting the pamphlets printed and distributed.
All payments were to be made by cheques and all the receipts were to be
deposited in the bank on the same day.
At the end of the year, the results were:
14
5
Particulars Amount
(in Rs.)
Purchases of Computer stationery like DVDs, CDs
etc.
92,000
Revenue from fees received from students of
Computer classes
2,70,000
Revenue on Account of Internet Facility 2,20,000
Revenue from sale of Computer Stationery 1,60,000
Wages paid to servant 12,000
Electricity Charges 48,000
Telephone Charges 73,000
Entertainment Expenses 7,000
General Expenses 5,200
He withdrew Rs. 5,000 by cheque each month for his personal expenses
and duly paid the bank loan.
You are required to pass the necessary journal entries in the books of Mr.
Tushar.
OR
Q.5 From the following figures extracted from the books of Mr. Rohit, you are
required to prepare a Trading and Profit and Loss Account for the year ended
31
st
March, 2014 and a Balance Sheet as on that date after making the
necessary adjustments:
Particulars Amount
(in Rs.)
Drawings 6,000
Sundry Debtors 38,200
Purchases 1,34,916
Return Inward 15,642
Bills Receivable 13,764
5 % Loan on Mortgage (01.04.2013) 17,000
Interest on Loan 400
Cash in Hand 6,100
Stock (01.04.2013) 11,678
Capital 60,000
Sundry Creditors 16,802
Sales 2,22,486
Bills Payable 5,428
Motor Vehicle 18,000
14
6
Cash at Bank 9,110
Land and Buildings 24,000
Bad Debts (Debit) 1,250
Carriage Outward 2,808
Provision for Bad Debts (Credit) 1,420
Return Outward 2,692
Discount Received 880
Carriage Inward 7,858
Establishment Expenses 16,194
Rent, Taxes and Insurance 7,782
Advertisement 4,528
General Expenses 8,978
Rent Received 500
Adjustments:
(i) Depreciate land and building @ 5 % p.a. and motor vehicle @ 15 % p.a.
(ii) Salaries Rs. 1,400 and rates Rs. 800 are due.
(iii) Provide provision for doubtful debts is to be maintained @ 5 % on
Sundry Debtors.
(iv) Stock in hand on 31
st
March, 2014 is valued at Rs. 12,500.
(v) Goods costing Rs. 1,000 were taken by the proprietor for his personal
use; no entry has been made in the books of accounts.
(vi) Prepaid insurance Rs. 350.
(vii) Provide for manager?s commission @ 5 % on net profit after charging
such commission.
(viii) A fire broke out on 01
st
April, 2014 destroying goods worth Rs. 4,700.
(ix) Goods costing Rs. 1,200 were sent to a customer on sale or return for
Rs. 1,400 on 27
th
March, 2014, and have been recorded in the books as
actual sales.
*************
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This post was last modified on 19 February 2020