Download JNTUA MBA 2019 June 1st Sem 17E00104 Financial Accounting for Managers Question Paper

MBA & MBA (Finance) I Semester Supplementary Examinations June 2019

FINANCIAL ACCOUNTING FOR MANAGERS

(For students admitted in 2017 & 2018 only)

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Time: 3 hours Max. Marks: 60

All questions carry equal marks

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SECTION -A

(Answer the following: 05 X 10 = 50 Marks)

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1. Discuss the uses of accounting. What are its limitations?

   OR

2. Explain the steps involved in the double entry system. What are its advantages and limitations?
3. Enter the following transactions in proper subsidiary books and post the same in the relevant ledger accounts.
   
   

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   2003
   Aug
   

   Particulars	Amount (Rs)
   1 Bought goods from Ganga	2,500
   2 Returned goods to Yamuna	150
   5 Yamuna sold goods to us	1,500
   8 Krishna purchased goods from us	1,200
   11 Received goods returned by Kaveri	150
   13 Returned goods to Ganga	100
   17 Sold goods to Ponni	800
   22 Purchased goods from Sindhu	900
   27 Returned goods to Yamuna	150

4. (a) Differentiate between journal and ledger.
   (b) What are the errors disclosed by the trial balance?

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5. The stock of a material as on 1st April 1998 was 200 units at Rs.2 each. The following purchases and issues were made subsequently. Prepare stores ledger account showing how the value of the issues would be recorded under:
   (i) FIFO and
   (ii) LIFO methods.
   1998 April 5 purchases 100 units at Rs.2.20 each.
   10 purchases 150 units at Rs.2.40 each.
   

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   20 purchases 180 units at Rs.2.50 each.
   2 issues 150 units
   7 issues 100 units
   12 issues 100 units
   28 issues 200 units

   OR

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6. Differentiate between straight line and diminishing balance methods of depreciation.
7. From the following profit and loss account and balance sheet relating to XYZ co ltd as on 31st March 2003,
   
   

   Particulars	Rs.	Particulars	Rs.
   To opening stock	3,000	By Net sales	1,95,000
   To purchases	1,20,000	By closing stock	5,000
   To wages	7,000
   To gross profit c/d	70,000
   	2,00,000		2,00,000
   To administrative expenses	20,000	By gross profit b/d	10,000
   To selling and distribution expenses	15,000	By dividend received	70,000
   To loss on sale of fixed assets	5,000
   To net profit	40,000
   	80,000		80,000

   
   

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   Balance sheet as on March 31st March 2003
   
   

   Liabilities	Rs.	Assets	Rs.
   Equity share capital (5,000 equity shares of Rs.100 each)	5,00,000	Land	1,50,000
   Building	2,00,000	General reserve	50,000
   Plant and machinery	2,00,000	Profit and loss account	70,000
   Stock	80,000	Sundry creditors	80,000
   Debtors	50,000
   Bank balance	20,000
   	7,00,000		7,00,000

   
   You are required to calculate the following: (i) Gross profit ratio. (ii) Operating ratio & operating profit ratio. (iii) Net profit to capital employed ratio. (iv) Current ratio & liquid ratio. (v) Stock turnover ratio.

   OR

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8. Define 'ratio'. Explain its uses, merits and demerits.
9. Discuss the steps involved in the preparation of a fund flow statement.

   OR

10. From the balance sheets of XYA co ltd., prepare a cash flow statement.
    
    

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    Capital & liabilities	2002	2003	Assets	2002	2003
    Equity share capital	15,000	20,000	Good will	5,750	4,500
    Preference share Capital	7,500	5,000	Land & Buildings	10,000	8,500
    General reserve	2,000	3,500	Machinery	4,000	10,000
    Profit & Loss a/c	1,500	2,400	Trade debtors	8,000	10,000
    Proposed dividend	2,100	2,500	Stock	3,850	5,450
    Trade creditors	2,750	4,150	Bills receivable	1,000	1,500
    Bills payable	1,000	800	Cash in hand	750	500
    Provision for taxation	2,000	2,500	Cash at bank	500	400
    	33,850	40,850		33,850	40,850

    
    Additional information:
    (i) Depreciation on machinery of Rs.500 during the 2003 has to be provided.
    (ii) Depreciation of land & building of Rs.1,000 during the year 2003.
    (iii) An interim dividend of Rs.1,000 was paid during the year 2003.
    

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    (iv) Income tax Rs.1,750 was paid during the year 2003.

SECTION -B

Case Study:

(Compulsory question, 01 X 10 = 10 Marks)

1. The following trial balance have been taken out from the books of XYZ as on 31st December 2005.
   

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   	Dr. Rs.	Cr. Rs.
   Plant and machinery	100,000
   Opening stock	60,000
   Purchases	160,000
   Building	170,000
   Carriage inward	3,400
   Carriage outward	5,000
   Wages	32,000
   Sundry debtors	100,000
   Salaries	24,000
   Furniture	36,000
   Trade expense	12,000
   Discount on sales	1,900
   Advertisement	5,000
   Bad debts	1,800
   Drawings	10,000
   Bills receivable	50,000
   Insurance	4,400
   Bank balances	20,000
   Sales		480,000
   Interest received		2,000
   Sundry creditors		40,000
   Bank loan		100,000
   Discount on purchases		2,000
   Capital		171,500
   	795,500	795,500

   
   Closing stock is valued at Rs.90,000
   You are required to prepare the trading and profit and loss account of the business for the year ended 31.12.2005 and a balance sheet as at that date.

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