Download GTU MBA 2015 Winter 1st Sem 810001 Accounting For Managers Question Paper

Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2015 Winter 1st Sem 810001 Accounting For Managers Previous Question Paper

1

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 01? ? EXAMINATION ? WINTER 2015

Subject Code: 810001 Date: 17/12/2015
Subject Name: Accounting for Managers
Time: 10.30 AM TO 05.30 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 following detail of ILSRM ltd. Prepare vertical form of balance sheet. 07

Assets Amount Liability Amount
Plant 20,00,00
0
Share capital 30,00,00
0
Debtors 6,00,000 12% debenture 15,00,00
0
Stock at cost 6,00,000 Interest accrued on debenture 90,000
Cash balance 3,00,000 General reserves 5,00,000
Bank balance 4,00,000 Provision for tax 2,00,000
Discount on issues of shares 1,00,000 Provision for depreciation on plant 2,00,000
Bills receivables 1,00,000 Provision for doubtful debt 15,000
Long term investment 25,00,00
0
Profit & loss a/c 1,00,000
Motor car 1,00,000 Creditors 7,00,000
Interest accrued on investment 25000 Bills payable 4,00,000
Accrued expenses 20,000
68,25,00
0
68,25,00
0

(B) Discuss qualitative characteristics of financial statement
07

Q: 2 (A) journalize the following transaction in the book of Mr. Ram.
07

1.4.1
4
Business started with cash in hand 10,000 rs : cash at bank 50,000 rs : stock 2,00,000
rs : Land 10, 00,000 rs : loan from Mr. X 60,000 rs : loan from Mr Y 20,000 rs
5.4.1
4
Received 1900 rs from Mr. Laxman in full settlement of his a/c pf 2000 rs
6.4.1
4
Received 2900 rs from Mr. Bharat on his a/c for 3000 rs
7.4.1
4
Withdrew 1000 rs for personnel use.
8.4.1
4
Paid income tax by cheque 3000 rs
9.4.1
4
Salary due to clerk 1000rs
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1

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 01? ? EXAMINATION ? WINTER 2015

Subject Code: 810001 Date: 17/12/2015
Subject Name: Accounting for Managers
Time: 10.30 AM TO 05.30 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 following detail of ILSRM ltd. Prepare vertical form of balance sheet. 07

Assets Amount Liability Amount
Plant 20,00,00
0
Share capital 30,00,00
0
Debtors 6,00,000 12% debenture 15,00,00
0
Stock at cost 6,00,000 Interest accrued on debenture 90,000
Cash balance 3,00,000 General reserves 5,00,000
Bank balance 4,00,000 Provision for tax 2,00,000
Discount on issues of shares 1,00,000 Provision for depreciation on plant 2,00,000
Bills receivables 1,00,000 Provision for doubtful debt 15,000
Long term investment 25,00,00
0
Profit & loss a/c 1,00,000
Motor car 1,00,000 Creditors 7,00,000
Interest accrued on investment 25000 Bills payable 4,00,000
Accrued expenses 20,000
68,25,00
0
68,25,00
0

(B) Discuss qualitative characteristics of financial statement
07

Q: 2 (A) journalize the following transaction in the book of Mr. Ram.
07

1.4.1
4
Business started with cash in hand 10,000 rs : cash at bank 50,000 rs : stock 2,00,000
rs : Land 10, 00,000 rs : loan from Mr. X 60,000 rs : loan from Mr Y 20,000 rs
5.4.1
4
Received 1900 rs from Mr. Laxman in full settlement of his a/c pf 2000 rs
6.4.1
4
Received 2900 rs from Mr. Bharat on his a/c for 3000 rs
7.4.1
4
Withdrew 1000 rs for personnel use.
8.4.1
4
Paid income tax by cheque 3000 rs
9.4.1
4
Salary due to clerk 1000rs
2
9.4.1
4
Received commission for 1000 rs half of which is in advance
(B) Discuss IFRS in detail.
07
OR
(B) What is trial balance? What are the different errors which are not disclosed by
Trial balance?
07
FirstRanker.com - FirstRanker's Choice
1

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 01? ? EXAMINATION ? WINTER 2015

Subject Code: 810001 Date: 17/12/2015
Subject Name: Accounting for Managers
Time: 10.30 AM TO 05.30 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 following detail of ILSRM ltd. Prepare vertical form of balance sheet. 07

Assets Amount Liability Amount
Plant 20,00,00
0
Share capital 30,00,00
0
Debtors 6,00,000 12% debenture 15,00,00
0
Stock at cost 6,00,000 Interest accrued on debenture 90,000
Cash balance 3,00,000 General reserves 5,00,000
Bank balance 4,00,000 Provision for tax 2,00,000
Discount on issues of shares 1,00,000 Provision for depreciation on plant 2,00,000
Bills receivables 1,00,000 Provision for doubtful debt 15,000
Long term investment 25,00,00
0
Profit & loss a/c 1,00,000
Motor car 1,00,000 Creditors 7,00,000
Interest accrued on investment 25000 Bills payable 4,00,000
Accrued expenses 20,000
68,25,00
0
68,25,00
0

(B) Discuss qualitative characteristics of financial statement
07

Q: 2 (A) journalize the following transaction in the book of Mr. Ram.
07

1.4.1
4
Business started with cash in hand 10,000 rs : cash at bank 50,000 rs : stock 2,00,000
rs : Land 10, 00,000 rs : loan from Mr. X 60,000 rs : loan from Mr Y 20,000 rs
5.4.1
4
Received 1900 rs from Mr. Laxman in full settlement of his a/c pf 2000 rs
6.4.1
4
Received 2900 rs from Mr. Bharat on his a/c for 3000 rs
7.4.1
4
Withdrew 1000 rs for personnel use.
8.4.1
4
Paid income tax by cheque 3000 rs
9.4.1
4
Salary due to clerk 1000rs
2
9.4.1
4
Received commission for 1000 rs half of which is in advance
(B) Discuss IFRS in detail.
07
OR
(B) What is trial balance? What are the different errors which are not disclosed by
Trial balance?
07
3

Q: 3 (A) M Ltd. which depreciates its machinery @ 10% per annum according to diminishing
balance method, had on 1st April, 2012 ` 4, 86,000 balance in its machinery account. During the
year ended 31st March, 2013, the machinery purchased on 1st April, 2010 for ` 60,000 was sold
for ` 40,000 on 1st October, 2012 and a new machinery costing ` 70,000 was purchased and
installed on the same date; installation charges being ` 5,000.
The company wants to change its method of depreciation from diminishing balance method to
straight line method w.e.f. 1st April, 2010 and adjust the difference before 31st March, 2013,
the rate of depreciation remaining the same as before.
Show the machinery account for the year ended 31st March, 2013.
07

(B) Discuss AS-13 for investment. Give example of right issues and bonus in it. 07

OR
Q: 3 (A) following are the details of receipts and issues of material LIMSR. 07
Receipts 1 January balance 50 units @ 4 per unit Issues 10 January issues 70 units
5 January purchase 40 units @ 3 per unit 12 January issues 10 units
8 January purchase 30 units @ 4 per unit 20 January issues 20 units
15 January purchase 20 units @ 5 per unit 24 January issues 10 units
26 January purchase 40 units @ 3 per unit 31 January shortage 5 units
The firms follows the perpetual inventory system for maintaining its store records. You are
required to calculate the value of inventory on January 31 using
(LIFO) 2. (FIFO) 3. (Weightage Average Method)

(B) Discuss AS-9 for revenue recognition
07

Q: 4 (A) Following are balance sheet of MILRS ltd. Year ending 2004 & 2005 07
Balance sheet as of march, 31
Particulars 2004 2005
Share capital 6,75,000 7,87,500
General reserves 2,25,000 2,81,250
Capital reserves ( profit of sale of investment ) - 11,250
Profit & loss account 1,12,500 2,25,000
15 % debentures 3,37,500 2,25,000
Accrued expenses 11,250 13,500
Creditors 1,80,000 2,81,250
Provision dividends 33,750 38,250
Provision for tax 78,750 85,500
Total 16,53,750 19,48,500
Fixed assets 11,25,000 13,50,000
Less : Accumulated depreciation 2,25,000 2,81,250
Net fixed assets 9,00,000 10,68,750
Long term investment at cost 2,02,500 2,02,500
Stock at cost 2,25,000 3,03,750
Debtors ( net of provision of doubtful debt 45000 and 56250
Respectively for 2004 and 2005 year )
2,53,125 2,75,625
Bills receivables 45,000 73,125
Prepaid expenses 11,250 13,500
Miscellaneous expenses 16,875 11,250
Total 16,53,750 19,48,500
FirstRanker.com - FirstRanker's Choice
1

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 01? ? EXAMINATION ? WINTER 2015

Subject Code: 810001 Date: 17/12/2015
Subject Name: Accounting for Managers
Time: 10.30 AM TO 05.30 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 following detail of ILSRM ltd. Prepare vertical form of balance sheet. 07

Assets Amount Liability Amount
Plant 20,00,00
0
Share capital 30,00,00
0
Debtors 6,00,000 12% debenture 15,00,00
0
Stock at cost 6,00,000 Interest accrued on debenture 90,000
Cash balance 3,00,000 General reserves 5,00,000
Bank balance 4,00,000 Provision for tax 2,00,000
Discount on issues of shares 1,00,000 Provision for depreciation on plant 2,00,000
Bills receivables 1,00,000 Provision for doubtful debt 15,000
Long term investment 25,00,00
0
Profit & loss a/c 1,00,000
Motor car 1,00,000 Creditors 7,00,000
Interest accrued on investment 25000 Bills payable 4,00,000
Accrued expenses 20,000
68,25,00
0
68,25,00
0

(B) Discuss qualitative characteristics of financial statement
07

Q: 2 (A) journalize the following transaction in the book of Mr. Ram.
07

1.4.1
4
Business started with cash in hand 10,000 rs : cash at bank 50,000 rs : stock 2,00,000
rs : Land 10, 00,000 rs : loan from Mr. X 60,000 rs : loan from Mr Y 20,000 rs
5.4.1
4
Received 1900 rs from Mr. Laxman in full settlement of his a/c pf 2000 rs
6.4.1
4
Received 2900 rs from Mr. Bharat on his a/c for 3000 rs
7.4.1
4
Withdrew 1000 rs for personnel use.
8.4.1
4
Paid income tax by cheque 3000 rs
9.4.1
4
Salary due to clerk 1000rs
2
9.4.1
4
Received commission for 1000 rs half of which is in advance
(B) Discuss IFRS in detail.
07
OR
(B) What is trial balance? What are the different errors which are not disclosed by
Trial balance?
07
3

Q: 3 (A) M Ltd. which depreciates its machinery @ 10% per annum according to diminishing
balance method, had on 1st April, 2012 ` 4, 86,000 balance in its machinery account. During the
year ended 31st March, 2013, the machinery purchased on 1st April, 2010 for ` 60,000 was sold
for ` 40,000 on 1st October, 2012 and a new machinery costing ` 70,000 was purchased and
installed on the same date; installation charges being ` 5,000.
The company wants to change its method of depreciation from diminishing balance method to
straight line method w.e.f. 1st April, 2010 and adjust the difference before 31st March, 2013,
the rate of depreciation remaining the same as before.
Show the machinery account for the year ended 31st March, 2013.
07

(B) Discuss AS-13 for investment. Give example of right issues and bonus in it. 07

OR
Q: 3 (A) following are the details of receipts and issues of material LIMSR. 07
Receipts 1 January balance 50 units @ 4 per unit Issues 10 January issues 70 units
5 January purchase 40 units @ 3 per unit 12 January issues 10 units
8 January purchase 30 units @ 4 per unit 20 January issues 20 units
15 January purchase 20 units @ 5 per unit 24 January issues 10 units
26 January purchase 40 units @ 3 per unit 31 January shortage 5 units
The firms follows the perpetual inventory system for maintaining its store records. You are
required to calculate the value of inventory on January 31 using
(LIFO) 2. (FIFO) 3. (Weightage Average Method)

(B) Discuss AS-9 for revenue recognition
07

Q: 4 (A) Following are balance sheet of MILRS ltd. Year ending 2004 & 2005 07
Balance sheet as of march, 31
Particulars 2004 2005
Share capital 6,75,000 7,87,500
General reserves 2,25,000 2,81,250
Capital reserves ( profit of sale of investment ) - 11,250
Profit & loss account 1,12,500 2,25,000
15 % debentures 3,37,500 2,25,000
Accrued expenses 11,250 13,500
Creditors 1,80,000 2,81,250
Provision dividends 33,750 38,250
Provision for tax 78,750 85,500
Total 16,53,750 19,48,500
Fixed assets 11,25,000 13,50,000
Less : Accumulated depreciation 2,25,000 2,81,250
Net fixed assets 9,00,000 10,68,750
Long term investment at cost 2,02,500 2,02,500
Stock at cost 2,25,000 3,03,750
Debtors ( net of provision of doubtful debt 45000 and 56250
Respectively for 2004 and 2005 year )
2,53,125 2,75,625
Bills receivables 45,000 73,125
Prepaid expenses 11,250 13,500
Miscellaneous expenses 16,875 11,250
Total 16,53,750 19,48,500
4

FirstRanker.com - FirstRanker's Choice
1

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 01? ? EXAMINATION ? WINTER 2015

Subject Code: 810001 Date: 17/12/2015
Subject Name: Accounting for Managers
Time: 10.30 AM TO 05.30 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 following detail of ILSRM ltd. Prepare vertical form of balance sheet. 07

Assets Amount Liability Amount
Plant 20,00,00
0
Share capital 30,00,00
0
Debtors 6,00,000 12% debenture 15,00,00
0
Stock at cost 6,00,000 Interest accrued on debenture 90,000
Cash balance 3,00,000 General reserves 5,00,000
Bank balance 4,00,000 Provision for tax 2,00,000
Discount on issues of shares 1,00,000 Provision for depreciation on plant 2,00,000
Bills receivables 1,00,000 Provision for doubtful debt 15,000
Long term investment 25,00,00
0
Profit & loss a/c 1,00,000
Motor car 1,00,000 Creditors 7,00,000
Interest accrued on investment 25000 Bills payable 4,00,000
Accrued expenses 20,000
68,25,00
0
68,25,00
0

(B) Discuss qualitative characteristics of financial statement
07

Q: 2 (A) journalize the following transaction in the book of Mr. Ram.
07

1.4.1
4
Business started with cash in hand 10,000 rs : cash at bank 50,000 rs : stock 2,00,000
rs : Land 10, 00,000 rs : loan from Mr. X 60,000 rs : loan from Mr Y 20,000 rs
5.4.1
4
Received 1900 rs from Mr. Laxman in full settlement of his a/c pf 2000 rs
6.4.1
4
Received 2900 rs from Mr. Bharat on his a/c for 3000 rs
7.4.1
4
Withdrew 1000 rs for personnel use.
8.4.1
4
Paid income tax by cheque 3000 rs
9.4.1
4
Salary due to clerk 1000rs
2
9.4.1
4
Received commission for 1000 rs half of which is in advance
(B) Discuss IFRS in detail.
07
OR
(B) What is trial balance? What are the different errors which are not disclosed by
Trial balance?
07
3

Q: 3 (A) M Ltd. which depreciates its machinery @ 10% per annum according to diminishing
balance method, had on 1st April, 2012 ` 4, 86,000 balance in its machinery account. During the
year ended 31st March, 2013, the machinery purchased on 1st April, 2010 for ` 60,000 was sold
for ` 40,000 on 1st October, 2012 and a new machinery costing ` 70,000 was purchased and
installed on the same date; installation charges being ` 5,000.
The company wants to change its method of depreciation from diminishing balance method to
straight line method w.e.f. 1st April, 2010 and adjust the difference before 31st March, 2013,
the rate of depreciation remaining the same as before.
Show the machinery account for the year ended 31st March, 2013.
07

(B) Discuss AS-13 for investment. Give example of right issues and bonus in it. 07

OR
Q: 3 (A) following are the details of receipts and issues of material LIMSR. 07
Receipts 1 January balance 50 units @ 4 per unit Issues 10 January issues 70 units
5 January purchase 40 units @ 3 per unit 12 January issues 10 units
8 January purchase 30 units @ 4 per unit 20 January issues 20 units
15 January purchase 20 units @ 5 per unit 24 January issues 10 units
26 January purchase 40 units @ 3 per unit 31 January shortage 5 units
The firms follows the perpetual inventory system for maintaining its store records. You are
required to calculate the value of inventory on January 31 using
(LIFO) 2. (FIFO) 3. (Weightage Average Method)

(B) Discuss AS-9 for revenue recognition
07

Q: 4 (A) Following are balance sheet of MILRS ltd. Year ending 2004 & 2005 07
Balance sheet as of march, 31
Particulars 2004 2005
Share capital 6,75,000 7,87,500
General reserves 2,25,000 2,81,250
Capital reserves ( profit of sale of investment ) - 11,250
Profit & loss account 1,12,500 2,25,000
15 % debentures 3,37,500 2,25,000
Accrued expenses 11,250 13,500
Creditors 1,80,000 2,81,250
Provision dividends 33,750 38,250
Provision for tax 78,750 85,500
Total 16,53,750 19,48,500
Fixed assets 11,25,000 13,50,000
Less : Accumulated depreciation 2,25,000 2,81,250
Net fixed assets 9,00,000 10,68,750
Long term investment at cost 2,02,500 2,02,500
Stock at cost 2,25,000 3,03,750
Debtors ( net of provision of doubtful debt 45000 and 56250
Respectively for 2004 and 2005 year )
2,53,125 2,75,625
Bills receivables 45,000 73,125
Prepaid expenses 11,250 13,500
Miscellaneous expenses 16,875 11,250
Total 16,53,750 19,48,500
4

5
Additional information:
(1)During the year 2004-05 fixed assets with net book value of 11,250 (accumulated
depreciation 33750 rs ) was sold for 9000 rs
(2)During the year 2004-05 investment costing 90,000 were sold and also investment costing of
90,000 were purchased.
(3)Debentures were retired with 10% premium
(4)Tax of 61,875 was paid for 2003-04 year
(5)The proposed dividends for 2003-04 was paid in 2004-05
(6)During the year 2004-05 bad debt of 15,750 were written off against the provision of
doubtful debt account.
Prepare fund flow statement (statement of changes in financial position on working capital
basis) for the year ending March 31, 2005.

(B) Discuss the features of corporate balance sheet
07

OR

Q: 4 (A) ILMRS LTD (Balance Sheets As of December 31) prepare common size statement 07
And comment on increase / decrease of assets and liability

Assets 2010 2009 Liability 2010 2009
Cash 20000 17000 Accounts payable 40000 38000
Marketable securities 20,000 22,000 Salaries payable 2000 3000
Notes receivable 4,000 3,000 Taxes payable 4000 2000
Accounts receivable 50,000 56,000 8 % bonds 100000 100000
Merchandise inventory 70,000 43,000 6%Preference shares 50000 50000
Prepaid expenses 4000 4000 Equity shares 150000 125000
Plant & machinery

340000 310000 Retained earnings 162000 137000
508000 455000 508000 455000

(B) Discuss profitability ratios with formula and examples
07

Q : 5 (A) From the following details. Fill up the profit & loss account and balance sheet. 07
Profit & loss account
Particular Dr
Amount
Particular Cr amount
To Cost of goods sold 6,00,00
0
By sales 20,00,000
To operating expenditure ?
To Earnings before interest & tax ?

Total Total
To income tax Earnings before interest and tax
To debenture interest a/c 10,000
To net profit
Total Total
FirstRanker.com - FirstRanker's Choice
1

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 01? ? EXAMINATION ? WINTER 2015

Subject Code: 810001 Date: 17/12/2015
Subject Name: Accounting for Managers
Time: 10.30 AM TO 05.30 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 following detail of ILSRM ltd. Prepare vertical form of balance sheet. 07

Assets Amount Liability Amount
Plant 20,00,00
0
Share capital 30,00,00
0
Debtors 6,00,000 12% debenture 15,00,00
0
Stock at cost 6,00,000 Interest accrued on debenture 90,000
Cash balance 3,00,000 General reserves 5,00,000
Bank balance 4,00,000 Provision for tax 2,00,000
Discount on issues of shares 1,00,000 Provision for depreciation on plant 2,00,000
Bills receivables 1,00,000 Provision for doubtful debt 15,000
Long term investment 25,00,00
0
Profit & loss a/c 1,00,000
Motor car 1,00,000 Creditors 7,00,000
Interest accrued on investment 25000 Bills payable 4,00,000
Accrued expenses 20,000
68,25,00
0
68,25,00
0

(B) Discuss qualitative characteristics of financial statement
07

Q: 2 (A) journalize the following transaction in the book of Mr. Ram.
07

1.4.1
4
Business started with cash in hand 10,000 rs : cash at bank 50,000 rs : stock 2,00,000
rs : Land 10, 00,000 rs : loan from Mr. X 60,000 rs : loan from Mr Y 20,000 rs
5.4.1
4
Received 1900 rs from Mr. Laxman in full settlement of his a/c pf 2000 rs
6.4.1
4
Received 2900 rs from Mr. Bharat on his a/c for 3000 rs
7.4.1
4
Withdrew 1000 rs for personnel use.
8.4.1
4
Paid income tax by cheque 3000 rs
9.4.1
4
Salary due to clerk 1000rs
2
9.4.1
4
Received commission for 1000 rs half of which is in advance
(B) Discuss IFRS in detail.
07
OR
(B) What is trial balance? What are the different errors which are not disclosed by
Trial balance?
07
3

Q: 3 (A) M Ltd. which depreciates its machinery @ 10% per annum according to diminishing
balance method, had on 1st April, 2012 ` 4, 86,000 balance in its machinery account. During the
year ended 31st March, 2013, the machinery purchased on 1st April, 2010 for ` 60,000 was sold
for ` 40,000 on 1st October, 2012 and a new machinery costing ` 70,000 was purchased and
installed on the same date; installation charges being ` 5,000.
The company wants to change its method of depreciation from diminishing balance method to
straight line method w.e.f. 1st April, 2010 and adjust the difference before 31st March, 2013,
the rate of depreciation remaining the same as before.
Show the machinery account for the year ended 31st March, 2013.
07

(B) Discuss AS-13 for investment. Give example of right issues and bonus in it. 07

OR
Q: 3 (A) following are the details of receipts and issues of material LIMSR. 07
Receipts 1 January balance 50 units @ 4 per unit Issues 10 January issues 70 units
5 January purchase 40 units @ 3 per unit 12 January issues 10 units
8 January purchase 30 units @ 4 per unit 20 January issues 20 units
15 January purchase 20 units @ 5 per unit 24 January issues 10 units
26 January purchase 40 units @ 3 per unit 31 January shortage 5 units
The firms follows the perpetual inventory system for maintaining its store records. You are
required to calculate the value of inventory on January 31 using
(LIFO) 2. (FIFO) 3. (Weightage Average Method)

(B) Discuss AS-9 for revenue recognition
07

Q: 4 (A) Following are balance sheet of MILRS ltd. Year ending 2004 & 2005 07
Balance sheet as of march, 31
Particulars 2004 2005
Share capital 6,75,000 7,87,500
General reserves 2,25,000 2,81,250
Capital reserves ( profit of sale of investment ) - 11,250
Profit & loss account 1,12,500 2,25,000
15 % debentures 3,37,500 2,25,000
Accrued expenses 11,250 13,500
Creditors 1,80,000 2,81,250
Provision dividends 33,750 38,250
Provision for tax 78,750 85,500
Total 16,53,750 19,48,500
Fixed assets 11,25,000 13,50,000
Less : Accumulated depreciation 2,25,000 2,81,250
Net fixed assets 9,00,000 10,68,750
Long term investment at cost 2,02,500 2,02,500
Stock at cost 2,25,000 3,03,750
Debtors ( net of provision of doubtful debt 45000 and 56250
Respectively for 2004 and 2005 year )
2,53,125 2,75,625
Bills receivables 45,000 73,125
Prepaid expenses 11,250 13,500
Miscellaneous expenses 16,875 11,250
Total 16,53,750 19,48,500
4

5
Additional information:
(1)During the year 2004-05 fixed assets with net book value of 11,250 (accumulated
depreciation 33750 rs ) was sold for 9000 rs
(2)During the year 2004-05 investment costing 90,000 were sold and also investment costing of
90,000 were purchased.
(3)Debentures were retired with 10% premium
(4)Tax of 61,875 was paid for 2003-04 year
(5)The proposed dividends for 2003-04 was paid in 2004-05
(6)During the year 2004-05 bad debt of 15,750 were written off against the provision of
doubtful debt account.
Prepare fund flow statement (statement of changes in financial position on working capital
basis) for the year ending March 31, 2005.

(B) Discuss the features of corporate balance sheet
07

OR

Q: 4 (A) ILMRS LTD (Balance Sheets As of December 31) prepare common size statement 07
And comment on increase / decrease of assets and liability

Assets 2010 2009 Liability 2010 2009
Cash 20000 17000 Accounts payable 40000 38000
Marketable securities 20,000 22,000 Salaries payable 2000 3000
Notes receivable 4,000 3,000 Taxes payable 4000 2000
Accounts receivable 50,000 56,000 8 % bonds 100000 100000
Merchandise inventory 70,000 43,000 6%Preference shares 50000 50000
Prepaid expenses 4000 4000 Equity shares 150000 125000
Plant & machinery

340000 310000 Retained earnings 162000 137000
508000 455000 508000 455000

(B) Discuss profitability ratios with formula and examples
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Q : 5 (A) From the following details. Fill up the profit & loss account and balance sheet. 07
Profit & loss account
Particular Dr
Amount
Particular Cr amount
To Cost of goods sold 6,00,00
0
By sales 20,00,000
To operating expenditure ?
To Earnings before interest & tax ?

Total Total
To income tax Earnings before interest and tax
To debenture interest a/c 10,000
To net profit
Total Total
6

Balance sheet
Liabilities Amount Assets Amount
Capital??????? Fixed assets ?
Reserves?????.? Cash ?
Net worth ? Stock ?
10% debentures ? Debtors 35,000
Creditors 60,000
Total Total
Additional information:
(1) Net profit to sales 5%
(2) Current ratio 1.5: 1
(3) Return on net worth 20%
(4) Inventory turnover ratio 15 times (based on cost of goods sold)
(5) Share capital to reserves 4: 1
(6) Income tax 50%
(B) Explain trend analysis with hypothetical examples
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OR

Q: 5 (A) SRL limited gives you following details.
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Current ratio 2.5: 1
Debt equity ratio 1: 1.5
Return on total assets 15%
Total assets turnover ratio 2
Gross profit ratio 20%
Stock turnover ratio 7
Current market price of company?s equity share 16 rs
Net working capital 4, 50,000
Fixed assets 10, 00,000
Opening stock 3, 80,000
20,000, 9% preference share of 10 rs each
60,000 equity shares of 10 rs each

You are required to calculate following ratio
(1)Quick ratio
(2)Fixed assets turnover ratio
(3)Proprietary ratio
(4)Earnings per share ratio
(5)Price earning ratio
(6)Price earning ratio when market price of share is 20 rs
(7)Price earning ratio when market price of share is 12 rs

(B) Explain GAAP principles
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