Download JNTUH (Jawaharlal nehru technological university) MCA (Master of Computer Applications) 1st Sem (First Semester) Regulation-R15 2018 January 821AE Accounting And Financial Management Previous Question Paper
R15
Code No: 821AE
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MCA I Semester Examinations, January - 2018
ACCOUNTING & FINANCIAL MANAGEMENT
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
consists of 5 Units. Answer any one full question from each unit. Each question carries 10
marks and may have a, b, c as sub questions.
PART - A
5 ? 5 Marks = 25
1.a) Discuss different accounting conventions.
[5]
b) What is undercapitalization and overcapitalization?
[5]
c)
Draw specimen of cash flow management.
[5]
d)
Define budget. What is master budget?
[5]
e) How Internal Rate of Return is different from Net Present Value?
[5]
PART - B
5 ? 10 Marks = 50
2.
Record the following transactions in the Journal of the Amit Furniture Mart and post them
into the Ledger.
2013
Jan. 1 Started business with cash Rs. 10,000
,, 2 Deposited into bank Rs. 9,000
,, 3 Purchased machinery for Rs. 5,000 from Jawahar and gave him a cheque for the
amount.
,, 15 Paid installation charges of machinery Rs.100.
20 Purchased timber from Naveen of the list price of Rs. 2,000.He allowed 10% trade
discount.
,, 23 Furniture costing Rs 500 was used in furnishing the office.
,, 25 Sold Furniture to Naresh of the list price of Rs. 1,000 and allowed him 5% trade
discount.
,, 28 Received a cheque from Naresh for Rs. 930 in full settlement and sent the cheque
To bank.
,, 29 Sent to Naveen in full settlement a cheque for Rs. 1,750
,, 31 Paid wages Rs.350 and rent Rs.200.
[10]
OR
3.
"Without accounting concepts and conventions objective, reliable, consistent and
comparable accounts cannot be maintained." Comment.
[10]
4. The following is the capital structure of Aman Ltd as on 10.12.2017:
_________________________________________________________________
Equity shares-20,000shares @ Rs.100 each 20, 00,000
10% Preference Shares of Rs. 100 each 8, 00,000
12% debentures 12, 00,000
___________________________________________________________________
The market price of the company's share is Rs. 110 and it is expected that a dividend of
Rs. 10 per share would be declared after 1 year. The dividend growth rate is 6%.(a) If the
company is in the 50% tax bracket, compute the weighted average cost of capital.(b)
Assuming that in order to finance an expansion plan, the company intends to borrow a
fund of Rs. 20 lacs bearing 14% rate of interest, what will be the company's revised
weighted average cost of capital? This financing decision is expected to increase dividend
from Rs. 10 to Rs. 12 per share. However, the market price of equity share is expected to
decline from Rs. 110 to 105 per share.
[10]
OR
5.
What do you mean by financial leverage? Calculate the operating and combined leverage
from the following data: (a)Sales 2,00,000 units at Rs. 50 per unit.(b)Variable Cost per
unit Rs.25(c) Fixed Charges Rs. 25,00,000 (d)Interest Charges Rs. 10,00,000.
[10]
6.
From the following summary cash account of Y Ltd., prepare statement of cash flows
from the current year ended March 31 using direct method. The company does not have
any cash equivalent.
[10]
Summary Cash Account
For the Current Year Ended March 31
Cash inflows Rs.(000) Cash Outflows Rs.(000)
Opening balance 50 Payment to suppliers 2,000
Issue of equity shares 300 Purchase of fixed assets 200
Receipts from customers 2800 Overhead expenses 200
Sale of fixed assets 100 Wages and salaries 100
Taxations 250
Dividends 50
Repayment of bank loan 300
Closing balance 150
________ _______
3,250 3,250
OR
7.a)
"Financial Statement Analysis helps to know the financial position of a company".
Describe with examples.
b)
What are short and long term solvency ratios?
[10]
8.
Following are the information given below:
a) Fixed Expenses = Rs. 90,000
b) Variable Cost per unit:
c) Direct Material = Rs. 3
d) Direct Labor = Rs. 2
e) Direct Overheads = 100% of Direct Labor
f) Selling Price per unit = Rs. 12.
You are required to calculate (i) P/V ratio (ii) Break-even sales with the help of P/V ratio
(iii) Sales required to earn a profit of Rs. 4, 50,000.
[10]
OR
9.
What is P/V ratio? "The effect of a price increase is always to increase the P/V ratio, to
bring down the break-even point and to widen the margin of safety". Discuss.
[10]
10.
What is capital budgeting and features of capital budgeting proposals? Why Pay Back
Period is not as much effective as NPV?
[10]
OR
11.a) What is method of raising capital?
b) How will you estimate the working capital requirement of a firm?
[5+5]
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This post was last modified on 16 March 2023