Download JNTUH MCA 1st Sem R15 2017 August 821AE Accounting And Financial Management Question Paper

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Code No: 821AE R15
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD

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Time: 3hrs 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

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PART - A

5 x 5 Marks =25

1. Answer the following in about 5 sentences each:
   1. Current Assets. [5]

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   2. Causes and consequences of over capitalization. [5]
   3. Statement of changes in working capital. [5]
   4. Master Budget. [5]
   5. Payback period method and its limitations. [5]

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PART -B

5 x 10 Marks =50

2. Explain the procedure to be followed while preparing.
   1. Trial balance
   2. Trading account [5+5]
   OR

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3. Pass a compound journal entry in each of the following cases:
   1. Payment made to Ram Rs. 1,000. He allowed a cash discount of Rs. 50.
   2. Cash received from Suresh Rs. 800 and allowed him Rs. 50 as discount.
   3. A running business was purchased by Mohan with following assets and liabilities: Cash Rs. 2,000 land Rs. 4,000, furniture Rs. 1,000, stock Rs. 2,000, creditors Rs. 1,000, bank overdraft Rs. 2,000. [10]
4. How do you compute the Weighted Average Cost of Capital of a firm? [10] OR

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5. Raj Limited has the following capital structure.
   Rs.
   100000 Equity shares 40,00,000
   9% Preference shares 20,00,000
   15% Debentures 30,00,000
   

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   14% Long - term loans 10,00,000
   1,00,00,000
   Compute WACC based on existing capital structure. The market price of the companion
   share is Rs. 50. The company is to pay a dividend of Rs. 5 per share next year and the
   dividend will grow at 8% per year. The tax rate is 50%. [10]

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6. Discuss the following Ratios and the point out inputs needed to prepare them.
   1. Current Ratio
   2. Net profit Ratio
   3. Stock turnover Ratio.
   OR
7. From the following Profit and Loss Account, you are required to compute cash from
   

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   operations.
   Profit and Loss Account
   For the year ending 31 December 2016
   
   
   

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   To Salaries 5,000 By Gross Profit 25,000
   To Rent 1,000 By Profit on Sale of 5,000
   To Depreciation 2,000 Land
   To Loss on sale of Plant 1,000 By Income-Tax 3,000
   To Goodwill written off 4,000 Refund
   

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   To Proposed Dividends 5,000
   To Provision for Taxation 5,000
   To Net Profit 10,000
   33,000 33,000
8. Explain the practical applications of Break-even analysis. [10] OR

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9. A factory which expects to operate 7,000 hours, i.e., at 70% level of activity, furnishes
   details of expenses as under:
   Variable expenses 31,260
   Semi-variable expenses 1,200
   Fixed expenses 1,800
   

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   The semi-variable expenses go up by 10% between 85% and 95% activity. Construct
   a flexible budget for 90 percent activity. [10]
10. Answer the following:
    1. Sources of raising capital
    2. Accounting Rate of Return. [5+5]
    OR

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11. A project cost Rs:50,000 and the estimated cash inflow is Rs.10,000 for 5 years. The cost
    of capital is 10%. Calculate NPV and suggest whether the project is accepted or not. The
    present value factor of an annuity of Re.1 at 10% in 5 years is 3.791. [10]

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