This download link is referred from the post: JNTUH MBA 1st Sem Last 10 Year Question Papers (2010-2020) All Regulation-First Semester (JNTU Hyderabad)
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Question Paper Code: CMB002
Firstranker's choice
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Hall Ticket No
Jawaharlal Nehru Technological University Hyderabad
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MBA I Semester End Examinations (Regular) - February, 2017
Regulation: .-R16
FINANCIAL ACCOUNTING AND ANALYSIS
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(Master of Business Administration)
Time: 3 Hours
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Max Marks: 70
Answer ONE Question from each Unit
All Questions Carry Equal Marks
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All parts of the question must be answered in one place only
UNIT I
- (a) “Accounting is the language of business”-Explain the statement with its practical implications. [7 M]
(b) “Accounting is a service activity. Its function is to provide qualitative information, Primarily
financial in nature, about economic entities that is intended to be useful in making economic
decisions." [7 M]--- Content provided by FirstRanker.com ---
- (a) "Accounting Conventions are adopted to make the financial statements clear and meaningful”.
Elucidate the statement with important conventions of accounting. [8 M]--- Content provided by FirstRanker.com ---
(b) "Every business transaction has two elements OR aspects" Justify and explain the statement
with suitable examples. [6 M]
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UNIT II
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- (a) Give accounting equation for the following transactions of Hitesh for the year 2015.
- Started business with cash Rs. 18,000.
- Paid rent in advance Rs. 400.
- Purchased goods for cash Rs. 5000 and on credit Rs. 2,000.
- Sold goods for cash Rs. 4,000 (costing Rs. 2,400).
- Rent paid Rs. 1,000 and rent outstanding Rs. 200.
- Bought motor-cycle for personal use Rs. 500.
- Purchased equipments for cash Rs. 500.
- Paid to creditors Rs. 600.
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[8 M]
(b) The Table 1 Trial Balance has been prepared wrongly. You are asked to prepare the trial balance
correctly. [6 M]--- Content provided by FirstRanker.com ---
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Page 1 of 5
Table 1
| Name of accounts | Debit balance | Credit balance |
|---|---|---|
| Cash in hand | 2,000 | |
| Purchases returns | 4,000 | |
| Wages | 8,000 | |
| Establishment expenses | 12,000 | |
| Capital | 22,000 | |
| Carriage outward | 2,000 | |
| Discount received | 1,200 | |
| Commission earned | 800 | |
| Machinery | 20,000 | |
| Stock | 10,000 | |
| Creditors | 12,000 | |
| Sales | 28,000 | |
| Purchases | 28,000 | |
| Bank overdraft | 14,000 | |
| Grand total | 58,000 | 58,000 |
- (a) Ram and Shyam Bros. acquired a machine on July 1, 2014 at a cost of ‘ 70,000 and spent ‘5,000
on its installation. The firm writes off depreciation @ 10% on straight line method. The books
are closed on December 31 every year. Show the machinery and depreciation account for three
years. [6 M]--- Content provided by FirstRanker.com ---
(b) From the Table 2 Trial balance of Ravi enterprises, prepare the final accounts for the year ended
31st March, 2015: [8 M]
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Table 2
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| Particulars | Debit (Rs) | Credit (Rs) |
|---|---|---|
| Land and building | 50,000 | |
| Purchases | 1,10,000 | |
| Stock | 40,000 | |
| Returns | 1,500 | 2,500 |
| Wages | 10,000 | |
| Salaries | 9,000 | |
| Office expenses | 2,400 | |
| Carriage inwards | 1,200 | |
| Carriage outwards | 2,000 | |
| Discounts | 750 | 1,200 |
| Bad debts | 1,200 | |
| Sales | 2,05,000 | |
| Capital account | 1,30,000 | |
| Insurance | 1,500 | |
| Commission | 1,500 | |
| Plant and machinery | 50,000 | |
| Furniture and fixtures | 10,000 | |
| Bills receivable | 20,000 | |
| Sundry debtors | 40,000 | |
| Sundry creditors | 25,000 | |
| Cash in hand | 1,500 | |
| Cash at bank | 4,500 | |
| Office equipment | 12,000 | |
| Bills payable | 2,350 | |
| Total | 3,67,550 | 3,67,550 |
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Page 2 of 5
Adjustments:
- Closing stock amounted to Rs. 60, 000.
- Outstanding liabilities; Wages Rs. 2,000 and Rent Rs. 3,000.
- Depreciation; Land and buildings at 5%, Plant and machinery at 10%, Office equipments at
10% and Furniture and Fixtures at 10%. - Provide further bad debts reserve at 5% on Sundry debtors.
- Insurance premium prepaid Rs. 200.
- Provide interest on capital at 5%.
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UNIT – III
- (a) A firm maintains its stores ledger on the basis of FIFO method. Following is the summary of the
receipts and issues of raw materials during the month of April 2006: [8 M]
April 01 Opening balance 300 units @ Rs.22 per unit " 03 Issue vide Material requisition No. 14,
150 units.--- Content provided by FirstRanker.com ---
"08 Purchase order No.07, 200 units @ 25 per unit.
"12 Purchase order No.09, 400 units @ 23 per unit
"17 Issue vide Material requisition No. 16, 500 units.
"20 Issue vide Material requisition No. 18, 100 units.
"23 Purchase order No. 11, 600 units @ 20 per unit.--- Content provided by FirstRanker.com ---
"25 Issue vide Material requisition No.26, 600 units.
"28 Purchase order No.12, 200 units @ 26 per unit.
"29 Issue vide Material requisition No.32, 300 units.
30 Shortage 10 units--- Content provided by FirstRanker.com ---
(b) Critically examine the different types of preference Shares. [6 M] - (a) What is an ordinary share? How does it differ from a preference share and debenture? Explain
its most important features. [8M]--- Content provided by FirstRanker.com ---
(b) Fashion Fabrics Ltd. issued 100000 shares of Rs. 10 each on 1st April, 2006.
The amount payable on these shares was as under: [6 M]
Rs 2 per share on application.--- Content provided by FirstRanker.com ---
Rs 3 per share on allotment.
Rs 5 per share on call.--- Content provided by FirstRanker.com ---
Make necessary journal entries in the books of company.
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UNIT IV
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- (a) "A Fund flow statement is a better substitute for an income statement” Comment. [6 M]
(b) Table 3 is the Balance sheet of Anand and Sons. [8M]--- Content provided by FirstRanker.com ---
During the year a machine costing Rs. 10000 (accumulated depreciation Rs. 3000) sold for
Rs.5000. The provision for depreciation against Machinery as on 1.1.2015 was Rs. 25000 and on
31.12.2015 Rs. 40000. Net profit for the year amount to Rs. 45000. You are required to prepare
Cash flow statement.
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Page 3 of 5
Table 3
| Liabilities | 1.1.2015 (Rs.) | 31.12.2015 (Rs.) | Assets | 1.1.2015 (Rs.) | 31.12.2015 (Rs.) |
|---|---|---|---|---|---|
| Creditors | 40000 | 44000 | Cash | 10000 | 7000 |
| Mrs. A's Loan | 25000 | Debtors | 30000 | 50000 | |
| Loan from Bank | 40000 | 50000 | Stock | 35000 | 25000 |
| Capital | 125000 | 153000 | Machinery | 80000 | 55000 |
| Land | 40000 | 50000 | |||
| Building | 35000 | 60000 | |||
| 230000 | 247000 | 230000 | 247000 |
- (a) Discuss briefly the major classification of cash flow as per AS-3 (revised) [6 M]
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(b) Table 4 summaries of the Balance sheet of ABC Ltd., for two years. [8M]
Table 4
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| 31.12.2014 | 31.12.2015 | |
|---|---|---|
| Share Capital | 200000 | 260000 |
| P & L Account | 39690 | 41220 |
| Reserves | 50000 | 50000 |
| Sundry creditors | 39500 | 41135 |
| Bills payable | 33780 | 11525 |
| Bank overdraft | 59510 | |
| Provision for taxation | 40000 | 50000 |
| 462480 | 453880 | |
| Good will | 20000 | |
| Land and Building | 112450 | 116200 |
| Plant and Machinery | 148000 | 144250 |
| Stocks | 111040 | 97370 |
| Sundry Debtors | 85175 | 72625 |
| Bills receivable | 2315 | 735 |
| Cash | 2500 | 2700 |
| 461480 | 453880 |
Page 4 of 5
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Additional information:
- During the year ending 31.12.2015, an interim dividend of Rs. 2600 was paid.
- Income tax paid during the year amounted to Rs. 25000
- The net profit for the year before tax was Rs. 62530 You are required to prepare statement of
changes on working capital, treating provision for taxation as a current liability.
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UNIT - V
- (a) “Financial analysis is a continuous process being applicable to every business to evaluate its past
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performance and current financial position" Comment. [7 M]
(b) From the balance sheet given in Table 5, calculate: [7 M]- Working capital
- Current Ratio
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Page 5 of 5
- (b)
- Acid test Ratio
- Debt Equity Ratio
- Assets Proprietorship Ratio
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Table 5: BALANCE SHEET OF 'X' COMPANY LTD., as on 31st December 2006
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| Liabilities | Amount | Assets | Amount |
|---|---|---|---|
| Shareholders' fund: | Fixed assets | 1,80,000 | |
| Equity share capital: 1,50,000 | Current assets: | ||
| 12% Pref. share capital: 30,000 | Cash in Hand: 2,000 | ||
| Reserves and surplus: 24,000 | Cash at bank : 4,000 | ||
| 15% Debentures | 2,04,000 | Sundry Debtors: 10,000 | |
| 48,000 | Stores: 12,000 | ||
| Bank overdraft: 12,000 | Stock-in-Trade: 32,000 | ||
| Sundry creditors: 16,000 | 60,000 | ||
| Proposed dividend: 2,000 | Preliminary expenses | 48,000 | |
| Provision for taxation: 10,000 | Discount on issue of Debenture | 4,000 | |
| 40,000 | |||
| 2,92,000 | 2,92,000 |
- (a) Explain Du point analysis with chart [7 M]
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(b) Mention any 5 Accounting Standards. Explain the significance of Accounting Standard. [7 M]
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This download link is referred from the post: JNTUH MBA 1st Sem Last 10 Year Question Papers (2010-2020) All Regulation-First Semester (JNTU Hyderabad)