Download JNTUA MBA R17 2019 Jan 1st Sem 17E00104 Financial Accounting for Managers Question Paper

MBA & MBA (Finance) I Semester Regular & Supplementary Examinations December/January 2018/19

FINANCIAL ACCOUNTING FOR MANAGERS
(For students admitted in 2017 & 2018 only)

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Time: 3 hours Max. Marks: 60

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

1. Define accounting. Explain its objectives and merits.

   OR

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2. Explain the classification of accounts in detail.

3. Journalize the following transaction in the books of Shankar & Co.

   
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   1998 Rs.
   June 1 started business with a capital of 60,000
   June 2 paid into bank 30,000
   June 4 purchased goods from Kamal on credit 10,000
   June 6 paid to Shiram 4,920
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   June 6 discount allowed by him 80
   June 8 cash sales 20,000
   June 12 sold to Hameed 5,000
   June 15 purchased goods from Bharat on credit 7,500
   June 18 paid salaries 4,000
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   June 20 received from Prem 2,480
   June 20 allowed him discount 20
   June 25 withdraw from bank for office use 5,000
   June 28 withdraw for personal use 1,000
   June 30 paid Hanif by cheque 3,000.
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4. Discuss the accounting principles in detail.

   OR

5. On April 1, 2011, company A purchased an equipment at the cost of Rs. 140,000. This equipment is estimated to have 5 year useful life. At the end of the 5th year, the salvage value (residual value) will be Rs. 20,000. Company A recognizes depreciation to the nearest whole month. Calculate the depreciation expenses for 2011, 2012 and 2013 using straight line depreciation method.

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   OR

6. Discuss any four methods of valuing the inventory.

7. The following is the Balance sheet of a company as on 31st March:

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   Liabilities	Rs	Assets	Rs
   Share capital	2,00,000	Land and building	1,40,000
   Profit and loss account	30,000	Plant and machinery	3,50,000
   General reserve	40,000	stock	2,00,000
   12% debentures	4,20,000	Sundry debtors	1,00,000
   Sundry creditors	1,00,000	Bills receivable	10,000
   Bills payable	50,000	Cash at bank	40,000
   	8,40,000		8,40,000

   Calculate: (i) Current ratio and quick ratio. (ii) Debt to equity ratio. (iii) Proprietary ratio. (iv) Capital gearing ratio. (v) Current assets to fixed assets ratio.

   OR

8. How ratios are classified? Explain.

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9. What are the objectives of fund flow statement? Explain the merits and demerits of fund flow statement.

   OR

10. Differentiate between fund flow and cash flow statement.

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SECTION -B
(Compulsory question, 01 X 10 = 10 Marks)

11. Case Study:

    From the following Trial balance of Raj Kumar prepare Trading, profit and loss account for the year ended 31st Mar 2002 and balance sheet as on that date:

    Trial Balance of Raj Kumar for the year ending 31st March 2002.

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    Particulars	Dr(Rs)	Cr(Rs)
    Capital		60,000
    Drawings	10,000
    furniture	5,200
    Bank overdraft		8,400
    Taxes and insurance	4,000
    Creditors		27,600
    Buildings	40,000
    Opening stock	44,000
    Debtors	36,000
    Rents	2000
    Purchases	2,20,000
    Sales		3,00,000
    Sales returns	4,000
    General expenses	8,000
    Salaries	18,000
    Commission		4,400
    Carriage on purchases	3,600
    Bad debts	1,600
    Discount		3,200
    Total	4,02,000	4,02,000

    The following adjustments are to be made:

    1. The closing stock was valued at Rs. 40,120, but there has been a loss of stock by fire during the period to the extent of Rs. 10,000 not covered by insurance.
    2. Depreciation on buildings Rs. 2,000 and on furniture Rs. 500 is to be provided for.
    3. A provision for doubtful debts at 5% on debtors is required.
    4. Unexpired insurance amounted to Rs. 400.

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    5. Interest on capital at 5% per annum is to be provided.

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