Download JNTUA (JNTU Anantapur) MBA (Master of Business Administration) 2018 May-June Supplementary 1st Sem 9E00103 Financial Accounting for Managers Previous Question Paper
MBA & MBA (Finance) I Semester Supplementary Examinations June/July 2018
FINANCIAL ACCOUNTING FOR MANAGERS
(For students admitted in 2013 (LC), 2014, 2015 & 2016 only)
Time: 3 hours Max. Marks: 60
Answer any FIVE questions
All questions carry equal marks
*****
1 Explain the accounting concepts and conventions.
2 The following balances were extracted from the books of Nagarjuna traders, Hyderabad as on
31.03.2018.
Particulars Debit (Rs) Credit (Rs)
capital - 19,400
Purchases and sales 41,400 55,140
Trade debtors and creditors 7,250 3,860
Stock as on 1-4-2017 4,120 -
Balance at bank 3,920 -
Drawings 4,600 -
Motor van expenses 510 -
Motor van 6,250 -
Rent and rates 750 -
Salaries 8,120 -
Reserve for doubtful debts - 250
Bad debts 230 -
General expenses 1,120 -
Discount allowed and received 1,050 910
Insurance 240 -
Total 79,560 79,560
The following are the adjustments to be made:
(i) Salaries and rent accrued but not paid Rs. 820 and Rs. 150 respectively.
(ii) Insurance paid in advance Rs. 40.
(iii) Maintain the reserve for doubtful debts at Rs. 300.
(iv) Depreciation on motor van to be made at 10%.
(v) The stock in trade as on 31
st
March 2018 was valued at Rs. 5040.
You are required to prepare a trading, profit and loss account for the year ending 31
st
March 2018
and the balance sheet as on that date.
3 A firm purchased a plant and machinery on 1
st
July 2005 for Rs. 90,000 and incurred Rs. 10,000 on
its erection. On 30
th
June 2008, part of plant and machinery purchased on 1
st
July 2005 for
Rs. 50,000 sold for Rs. 30,000. Depreciation is written at 10%. The firm closes its books on
31
st
December each year. Prepare plant and machinery account and depreciation account under
straight line method.
Contd. in page 2
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Code: 9E00103
MBA & MBA (Finance) I Semester Supplementary Examinations June/July 2018
FINANCIAL ACCOUNTING FOR MANAGERS
(For students admitted in 2013 (LC), 2014, 2015 & 2016 only)
Time: 3 hours Max. Marks: 60
Answer any FIVE questions
All questions carry equal marks
*****
1 Explain the accounting concepts and conventions.
2 The following balances were extracted from the books of Nagarjuna traders, Hyderabad as on
31.03.2018.
Particulars Debit (Rs) Credit (Rs)
capital - 19,400
Purchases and sales 41,400 55,140
Trade debtors and creditors 7,250 3,860
Stock as on 1-4-2017 4,120 -
Balance at bank 3,920 -
Drawings 4,600 -
Motor van expenses 510 -
Motor van 6,250 -
Rent and rates 750 -
Salaries 8,120 -
Reserve for doubtful debts - 250
Bad debts 230 -
General expenses 1,120 -
Discount allowed and received 1,050 910
Insurance 240 -
Total 79,560 79,560
The following are the adjustments to be made:
(i) Salaries and rent accrued but not paid Rs. 820 and Rs. 150 respectively.
(ii) Insurance paid in advance Rs. 40.
(iii) Maintain the reserve for doubtful debts at Rs. 300.
(iv) Depreciation on motor van to be made at 10%.
(v) The stock in trade as on 31
st
March 2018 was valued at Rs. 5040.
You are required to prepare a trading, profit and loss account for the year ending 31
st
March 2018
and the balance sheet as on that date.
3 A firm purchased a plant and machinery on 1
st
July 2005 for Rs. 90,000 and incurred Rs. 10,000 on
its erection. On 30
th
June 2008, part of plant and machinery purchased on 1
st
July 2005 for
Rs. 50,000 sold for Rs. 30,000. Depreciation is written at 10%. The firm closes its books on
31
st
December each year. Prepare plant and machinery account and depreciation account under
straight line method.
Contd. in page 2
Page 1 of 2
Code: 9E00103
4 From the particulars given below, prepare the stores ledger card
2018 January 1, Opening stock 1,000 units at Rs. 26 each.
5 purchased 500 units at Rs. 24.50 each.
7 issued 750 units.
10 purchased 1,500 units at Rs. 25 each.
12 issued 1,100 units.
15 purchased 1,000 units at Rs. 25 each.
17 issued 500 units.
18 issued 300 units.
25 purchased 1,500 units at Rs. 26 each.
29 issued 1,500 units.
Adopt the FIFO method of issue and ascertain the value of the closing stock.
5 (a) What is meant by issue of shares at discount? State the conditions to be fulfilled for the issue of
shares at discount under the companies act.
(b) Explain in brief the terms: (i) Calls-in Arrears. (ii) Calls-in Advance.
6 The balance sheets of National Co. As on 31
st
December, 2016 and 31
st
December, 2017 are as
follows:
Liabilities & capital
2016
Rs.
2017
Rs.
Assets
2016
Rs.
2017
Rs.
Share capital 5,00,000 7,00,000 Land & buildings 80,000 1,20,000
Profit & loss A/c 1,00,000 1,60,000 Plant & machinery 5,00,000 8,00,000
General reserve 50,000 70,000 Stock 1,00,000 75,000
Sundry creditors 1,53,000 1,90,000 Debtors 1,50,000 1,60,000
Bills payable 40,000 50,000 Cash 20,000 20,000
Expenses outstanding 7,000 5,000
Total 8,50,000 11,75,000 8,50,000 11,75,000
Additional information:
(i) Rs. 50,000 depreciation has been charged on plant and machinery during 20.17.
(ii) A piece of machinery was sold for Rs. 8,000 during the year 2017. It had cost Rs. 12,000,
depreciation of Rs. 7,000 has been provided on it.
Prepare a schedule of changes in working capital and a statement showing the sources and
application of funds for 2017.
7 The ratios relating to the activities of National traders Ltd. are as follows:
Debtor?s velocity 3 months
Stock velocity 8 months
Creditors velocity 2 months
Gross profit ratio 25%
Gross profit for current year ended 31
st
March amounts to Rs. 4,00,000. Closing stock of the year is
Rs. 10,000 above the opening stock. Bills receivable amount to Rs. 25,000 and bills payable
amount to Rs. 10,000. Find out: (i) Sales. (ii) Sundry debtors. (iii) Closing stock. (iv) Sundry
creditors.
8 What is window dressing? Explain different ways in which a firm can do window dressing of
accounts.
*****
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This post was last modified on 27 July 2020