Download JNTUH (Jawaharlal Nehru Technological University Hyderabad) MBA (Master of Business Administration) 1st Semester (First Semester) R17 2019 May 741AC Financial Accounting And Analysis Previous Question Paper
Code No: 741AC
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA I Semester Examinations, April/May-2019
FINANCIAL ACCOUNTING AND ANALYSIS
Time: 3hours Max.Marks:75
Note: This question paper contains two parts A and B.
Part A is compulsory which carries 25 marks. Answer all questions in Part A. Part B
consists of 5 Units. Answer any one full question from each unit. Each question carries
10 marks and may have a, b, c as sub questions.
PART - A 5 ? 5 Marks = 25
1.a) Accounting has been often called the language of business. Do you agree? What could
be deficient with this description? [5]
b) What is depreciation? What is the objective of providing for depreciation? List out the
various methods of depreciation. [5]
c) What is goodwill? How is it treated in the books of accounts? [5]
d) What information can be obtained from cash flow? Explain how cash flow statements
are prepared. [5]
e) Explain the differences between horizontal and vertical analysis. [5]
PART - B 5 ? 10 Marks = 50
2. Classify the following under Personal, Real and Nominal account.
a) capital account b) accrued interest c) interest on capital
d) interest on drawings e) goodwill f) patent and trade marks
g) salary h) rent i) current account of a partner j) fixtures [10]
OR
3.a) Describe the basic concepts and conventions of accounting.
b) What is basic accounting equation? [7+3]
4. The total debit side of a Trial Balance of a company as at 31
st
Dec 2017 is 25,000 and
credit side is Rs. 5,000
The following mistakes were discovered:
Particulars Correct fig. Rs Fig. in Trial .Balance. Rs.
Opening stock 17,500 25,700
Rent and rates 250 520
Sundry creditors 15,000 5,000
Commission received 750 750
taken on the debit side
Miscellaneous income 60 30
Ascertain the correct total of Trial balance. [10]
OR
R17
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Code No: 741AC
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA I Semester Examinations, April/May-2019
FINANCIAL ACCOUNTING AND ANALYSIS
Time: 3hours Max.Marks:75
Note: This question paper contains two parts A and B.
Part A is compulsory which carries 25 marks. Answer all questions in Part A. Part B
consists of 5 Units. Answer any one full question from each unit. Each question carries
10 marks and may have a, b, c as sub questions.
PART - A 5 ? 5 Marks = 25
1.a) Accounting has been often called the language of business. Do you agree? What could
be deficient with this description? [5]
b) What is depreciation? What is the objective of providing for depreciation? List out the
various methods of depreciation. [5]
c) What is goodwill? How is it treated in the books of accounts? [5]
d) What information can be obtained from cash flow? Explain how cash flow statements
are prepared. [5]
e) Explain the differences between horizontal and vertical analysis. [5]
PART - B 5 ? 10 Marks = 50
2. Classify the following under Personal, Real and Nominal account.
a) capital account b) accrued interest c) interest on capital
d) interest on drawings e) goodwill f) patent and trade marks
g) salary h) rent i) current account of a partner j) fixtures [10]
OR
3.a) Describe the basic concepts and conventions of accounting.
b) What is basic accounting equation? [7+3]
4. The total debit side of a Trial Balance of a company as at 31
st
Dec 2017 is 25,000 and
credit side is Rs. 5,000
The following mistakes were discovered:
Particulars Correct fig. Rs Fig. in Trial .Balance. Rs.
Opening stock 17,500 25,700
Rent and rates 250 520
Sundry creditors 15,000 5,000
Commission received 750 750
taken on the debit side
Miscellaneous income 60 30
Ascertain the correct total of Trial balance. [10]
OR
R17
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5. Following are the extracts from the Trial balance of a firm as on 31
st
March 2017.
Name of the account Dr. (Rs.) Cr. ( Rs.)
Furniture and fittings 4,00,000 --
Motor vehicles 2,00,000 --
Plant 2,00,000 --
Additional information:
a) Furniture of Rs. 20,000 was purchased on 1
st
Juy 2016. Write 10% off the furniture.
b) Motor vehicle of Rs.20,000 was acquired on 1
st
July 2016. Depreciate the motor
vehicles at 20% p.a.
c) The plant of Rs. 20,000 was acquired during the year, charge depreciation on plant
at 10% p.a.
Pass necessary journal entries and show how the items will appear in the firm?s final
accounts. [10]
6.a) Calculate the missing figure:
Capital at the Rs. 18,000
Capital introduced during the year Rs. 3,000
Drawings Rs. 4,000
Loss Rs. 1,000
Capital at the beginning ?
b) Calculate the capital of Mr.Ganesh as at 31
st
December 2015 from the following
information. [3+7]
OR
7. Determine the value of stock as per books of AT Ltd.as at 31
st
march 2016 from the
following information:
a) The cost of stock as per physical verification as on 24 the March amounted to
Rs.1,00,000.
b) Purchases as per Purchase Book after stock taking till 31st March amounted to
Rs. 1,00,000 and included the following:
Rs. 5,000 for goods received till 23
rd
March.
Rs. 10,000 for goods received on 1
st
April
c) Sales as per Sales Book after stock taking till 31
st
March amounted to Rs. 1,00,000
and included the following:
Rs. 5,000 for goods delivered till 23
rd
march.
Rs. 10,000 for goods delivered on 1
st
April.
d) Goods are sold by the trader at a profit of 25% on cost.
Also determine the cost of physical stock as on 31
st
March 2016. [10]
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Code No: 741AC
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA I Semester Examinations, April/May-2019
FINANCIAL ACCOUNTING AND ANALYSIS
Time: 3hours Max.Marks:75
Note: This question paper contains two parts A and B.
Part A is compulsory which carries 25 marks. Answer all questions in Part A. Part B
consists of 5 Units. Answer any one full question from each unit. Each question carries
10 marks and may have a, b, c as sub questions.
PART - A 5 ? 5 Marks = 25
1.a) Accounting has been often called the language of business. Do you agree? What could
be deficient with this description? [5]
b) What is depreciation? What is the objective of providing for depreciation? List out the
various methods of depreciation. [5]
c) What is goodwill? How is it treated in the books of accounts? [5]
d) What information can be obtained from cash flow? Explain how cash flow statements
are prepared. [5]
e) Explain the differences between horizontal and vertical analysis. [5]
PART - B 5 ? 10 Marks = 50
2. Classify the following under Personal, Real and Nominal account.
a) capital account b) accrued interest c) interest on capital
d) interest on drawings e) goodwill f) patent and trade marks
g) salary h) rent i) current account of a partner j) fixtures [10]
OR
3.a) Describe the basic concepts and conventions of accounting.
b) What is basic accounting equation? [7+3]
4. The total debit side of a Trial Balance of a company as at 31
st
Dec 2017 is 25,000 and
credit side is Rs. 5,000
The following mistakes were discovered:
Particulars Correct fig. Rs Fig. in Trial .Balance. Rs.
Opening stock 17,500 25,700
Rent and rates 250 520
Sundry creditors 15,000 5,000
Commission received 750 750
taken on the debit side
Miscellaneous income 60 30
Ascertain the correct total of Trial balance. [10]
OR
R17
www.FirstRanker.com www.FirstRanker.com
www.FirstRanker.com
www.FirstRanker.com
5. Following are the extracts from the Trial balance of a firm as on 31
st
March 2017.
Name of the account Dr. (Rs.) Cr. ( Rs.)
Furniture and fittings 4,00,000 --
Motor vehicles 2,00,000 --
Plant 2,00,000 --
Additional information:
a) Furniture of Rs. 20,000 was purchased on 1
st
Juy 2016. Write 10% off the furniture.
b) Motor vehicle of Rs.20,000 was acquired on 1
st
July 2016. Depreciate the motor
vehicles at 20% p.a.
c) The plant of Rs. 20,000 was acquired during the year, charge depreciation on plant
at 10% p.a.
Pass necessary journal entries and show how the items will appear in the firm?s final
accounts. [10]
6.a) Calculate the missing figure:
Capital at the Rs. 18,000
Capital introduced during the year Rs. 3,000
Drawings Rs. 4,000
Loss Rs. 1,000
Capital at the beginning ?
b) Calculate the capital of Mr.Ganesh as at 31
st
December 2015 from the following
information. [3+7]
OR
7. Determine the value of stock as per books of AT Ltd.as at 31
st
march 2016 from the
following information:
a) The cost of stock as per physical verification as on 24 the March amounted to
Rs.1,00,000.
b) Purchases as per Purchase Book after stock taking till 31st March amounted to
Rs. 1,00,000 and included the following:
Rs. 5,000 for goods received till 23
rd
March.
Rs. 10,000 for goods received on 1
st
April
c) Sales as per Sales Book after stock taking till 31
st
March amounted to Rs. 1,00,000
and included the following:
Rs. 5,000 for goods delivered till 23
rd
march.
Rs. 10,000 for goods delivered on 1
st
April.
d) Goods are sold by the trader at a profit of 25% on cost.
Also determine the cost of physical stock as on 31
st
March 2016. [10]
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8. The following information and the balance sheet relate to Shyamsons Ltd.
Particulars Year 1 Rs. Year 2 Rs.
Assets
cash 10,000 15,000
Receivables 20,000 25,000
Inventory 20,000 35,000
Plant and machinery at cost 85,000 85,000
Less: accumulated depreciation (15,000) (10,000)
1,20,000 1,50,000
Liabilities and capital
Sundry creditors 8,000 10,000
Outstanding expenses 7,000 10,000
Debenture payable 10,000 5,000
Long term loans 5,000 25,000
Capital 50,000 50,000
Retained earnings 40,000 50,000
1,20,000 1,50,000
Net profit for the period after charging Rs.5,000 on account of depreciation was
Rs.20,000. A piece of equipment costing Rs.25,000 on which depreciation accumulated
in the amount of Rs.10,000 was sold for Rs.10,000. Dividend paid during the year
amounted to Rs.10,000.
Prepare a Source and use of funds statement. [10]
OR
9.a) How does the statement of cash flows differ from the funds flow statement?
b) How will the following transactions be shown in the statement of cash flows:
i) Acquisitions of the assets of another company by issuance of shares for Rs.1,60,000.
ii) conversion of 10,000 preference shares of Rs. 100 each to 50,000 equity shares at a
premium of Rs. 10 per share.
iii) Entering into finance lease for a new plant with a value of Rs. 2,30,000? [6+4]
10. The National Bank Limited has been approached by two customers for a short term
loan of Rs.50,000. The following summarized financial information is available from
the latest financial statements:
Particulars Granny foods Rs. Home foods Rs.
Net sales 9,10,000 7,50,000
Gross profit margin 3,82,200 2,92,500
Interest expense 20,000 8,200
Income tax 75,000 50,000
Profit after tax 82,000 56,250
Inventories 90,000 65,200
Debtors 70,000 56,000
Cash 6,000 18,000
Current liabilities 1,82,600 1,16,000
Long term liabilities 1,60,000 1,30,000
Shareholders equity 1,80,000 1,40,000
The bank intends to accept one of the two loan requests. Which customer?s loan request
should be accepted? Why? [10]
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Code No: 741AC
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA I Semester Examinations, April/May-2019
FINANCIAL ACCOUNTING AND ANALYSIS
Time: 3hours Max.Marks:75
Note: This question paper contains two parts A and B.
Part A is compulsory which carries 25 marks. Answer all questions in Part A. Part B
consists of 5 Units. Answer any one full question from each unit. Each question carries
10 marks and may have a, b, c as sub questions.
PART - A 5 ? 5 Marks = 25
1.a) Accounting has been often called the language of business. Do you agree? What could
be deficient with this description? [5]
b) What is depreciation? What is the objective of providing for depreciation? List out the
various methods of depreciation. [5]
c) What is goodwill? How is it treated in the books of accounts? [5]
d) What information can be obtained from cash flow? Explain how cash flow statements
are prepared. [5]
e) Explain the differences between horizontal and vertical analysis. [5]
PART - B 5 ? 10 Marks = 50
2. Classify the following under Personal, Real and Nominal account.
a) capital account b) accrued interest c) interest on capital
d) interest on drawings e) goodwill f) patent and trade marks
g) salary h) rent i) current account of a partner j) fixtures [10]
OR
3.a) Describe the basic concepts and conventions of accounting.
b) What is basic accounting equation? [7+3]
4. The total debit side of a Trial Balance of a company as at 31
st
Dec 2017 is 25,000 and
credit side is Rs. 5,000
The following mistakes were discovered:
Particulars Correct fig. Rs Fig. in Trial .Balance. Rs.
Opening stock 17,500 25,700
Rent and rates 250 520
Sundry creditors 15,000 5,000
Commission received 750 750
taken on the debit side
Miscellaneous income 60 30
Ascertain the correct total of Trial balance. [10]
OR
R17
www.FirstRanker.com www.FirstRanker.com
www.FirstRanker.com
www.FirstRanker.com
5. Following are the extracts from the Trial balance of a firm as on 31
st
March 2017.
Name of the account Dr. (Rs.) Cr. ( Rs.)
Furniture and fittings 4,00,000 --
Motor vehicles 2,00,000 --
Plant 2,00,000 --
Additional information:
a) Furniture of Rs. 20,000 was purchased on 1
st
Juy 2016. Write 10% off the furniture.
b) Motor vehicle of Rs.20,000 was acquired on 1
st
July 2016. Depreciate the motor
vehicles at 20% p.a.
c) The plant of Rs. 20,000 was acquired during the year, charge depreciation on plant
at 10% p.a.
Pass necessary journal entries and show how the items will appear in the firm?s final
accounts. [10]
6.a) Calculate the missing figure:
Capital at the Rs. 18,000
Capital introduced during the year Rs. 3,000
Drawings Rs. 4,000
Loss Rs. 1,000
Capital at the beginning ?
b) Calculate the capital of Mr.Ganesh as at 31
st
December 2015 from the following
information. [3+7]
OR
7. Determine the value of stock as per books of AT Ltd.as at 31
st
march 2016 from the
following information:
a) The cost of stock as per physical verification as on 24 the March amounted to
Rs.1,00,000.
b) Purchases as per Purchase Book after stock taking till 31st March amounted to
Rs. 1,00,000 and included the following:
Rs. 5,000 for goods received till 23
rd
March.
Rs. 10,000 for goods received on 1
st
April
c) Sales as per Sales Book after stock taking till 31
st
March amounted to Rs. 1,00,000
and included the following:
Rs. 5,000 for goods delivered till 23
rd
march.
Rs. 10,000 for goods delivered on 1
st
April.
d) Goods are sold by the trader at a profit of 25% on cost.
Also determine the cost of physical stock as on 31
st
March 2016. [10]
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www.FirstRanker.com
8. The following information and the balance sheet relate to Shyamsons Ltd.
Particulars Year 1 Rs. Year 2 Rs.
Assets
cash 10,000 15,000
Receivables 20,000 25,000
Inventory 20,000 35,000
Plant and machinery at cost 85,000 85,000
Less: accumulated depreciation (15,000) (10,000)
1,20,000 1,50,000
Liabilities and capital
Sundry creditors 8,000 10,000
Outstanding expenses 7,000 10,000
Debenture payable 10,000 5,000
Long term loans 5,000 25,000
Capital 50,000 50,000
Retained earnings 40,000 50,000
1,20,000 1,50,000
Net profit for the period after charging Rs.5,000 on account of depreciation was
Rs.20,000. A piece of equipment costing Rs.25,000 on which depreciation accumulated
in the amount of Rs.10,000 was sold for Rs.10,000. Dividend paid during the year
amounted to Rs.10,000.
Prepare a Source and use of funds statement. [10]
OR
9.a) How does the statement of cash flows differ from the funds flow statement?
b) How will the following transactions be shown in the statement of cash flows:
i) Acquisitions of the assets of another company by issuance of shares for Rs.1,60,000.
ii) conversion of 10,000 preference shares of Rs. 100 each to 50,000 equity shares at a
premium of Rs. 10 per share.
iii) Entering into finance lease for a new plant with a value of Rs. 2,30,000? [6+4]
10. The National Bank Limited has been approached by two customers for a short term
loan of Rs.50,000. The following summarized financial information is available from
the latest financial statements:
Particulars Granny foods Rs. Home foods Rs.
Net sales 9,10,000 7,50,000
Gross profit margin 3,82,200 2,92,500
Interest expense 20,000 8,200
Income tax 75,000 50,000
Profit after tax 82,000 56,250
Inventories 90,000 65,200
Debtors 70,000 56,000
Cash 6,000 18,000
Current liabilities 1,82,600 1,16,000
Long term liabilities 1,60,000 1,30,000
Shareholders equity 1,80,000 1,40,000
The bank intends to accept one of the two loan requests. Which customer?s loan request
should be accepted? Why? [10]
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OR
11.a) A five year comparative analysis of Low Light Company?s current ratio and quick ratio
follows:
Particulars Year 2005 Year 2006 Year 2007 Year 2008 Year 2009
Current ratio 1.19 1.85 2.50 3.40 4.02
Acid test
ratio
1.15 1.02 0.98 0.72 0.50
i) What has been happening on the liquidity of Low Light Company over the five
years presented?
ii) Considering both ratios what does the trend indicate about, what has happened to
the makeup of Low Light?s current assets over the five year period?
b) What is solvency? Define and explain two of the ratios for solvency. [5+5]
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This post was last modified on 23 October 2020