Download JNTUH (Jawaharlal nehru technological university) MCA (Master of Computer Applications) 1st Sem (First Semester) Regulation-R13 2018 June-July Accounting And Financial Management Previous Question Paper
R13
Code No:811AE
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MCA I Semester Examinations, June/July - 2018
ACCOUNTING AND FINANCIAL MANAGEMENT
Time: 3hrs
Max.Marks:60
Note: This question paper contains two parts A and B.
Part A is compulsory which carries 20 marks. Answer all questions in Part A. Part B
consists of 5 Units. Answer any one full question from each unit. Each question carries
8 marks and may have a, b, c as sub questions.
PART - A
5 ? 4 Marks = 20
1.
Explain the following briefly.
a) Subsidiary Books.
[4]
b) Comparison of Under and Over Capitalization.
[4]
c) Cash Flows from Investing Activities.
[4]
d) Time Budgets and Activity Budgets.
[4]
e) Joel Dean Yield Method.
[4]
PART - B
5 ? 8 Marks = 40
2.
Define Financial Accounting. Explain Generally Accepted Accounting Principles briefly.
[8]
OR
3.
From the following Trial Balance of Shri, you are required to prepare final accounts for
the year ended 31st March 2005, after making the necessary adjustments.
[8]
Particulars
Debit
Credit
Capitl and Drawings
10,000
2,00,000
Freehold Property
60,000
Plant and Machinery
1,00,000
Salaries
14,000
Printing and stationaery
2,000
Furniture and Fixtures
4,000
Discount
1,500
Bills payable
5,700
Debtors and Creditors
25,000
40,000
Insurance
3,000
Bad debts
600
Office Rent
2,600
Loose Tools
2,000
Provision for Doubtful Debts
4,800
Loan to Sudhir at 10% on 1st Oct 2004
40,000
Interest on loan to Sudhir
1,000
Cash at Bank
25,000
Cash in Hand
10,500
Stock on 31st March 2005
74,000
Trading Profits
1,17,200
Outsanding Wages, 31st Mar 2005
500
Insurance claim receied for loss
5,000
374,200
3,74,200
Adjustents:
a) Outstanding Salaries Rs. 700
b) Prepaid Insurance Rs. 400
c) Value of loose tools on 31st March 2005 Rs. 1,500
d) Depreciation (on Closing balance): Plant and Machinery at 10%, Furniture and Fixtures at
5%.
[8]
4.
Write a detailed note on the cost of individual components of capital.
[8]
OR
5.
Paramount Products Ltd. wants to raise Rs. 100 lakh for diversification project. Current
estimates of EBIT from the new project is Rs. 22 lakh p.a.Cost of debt will be 15% for
amounts up to and including Rs. 40 lakh, 16% for additional amounts up to and including
Rs. 50 lakh and 18% for additional amounts above Rs. 50 lakh.The equity shares (face
value of Rs. 10) of the company have a current market value ofRs. 40. This is expected to
fall to Rs. 32 if debts exceeding Rs. 50 lakh are raised. Thefollowing options are under
consideration of the company.
[8]
Option
Debt
Equity
I
50%
50%
II
40%
60%
III
60%
40%
6.
Describe the principle ratios which you consider significant while interpreting the
published accounts of a company and explain the inferences which be drawn from them.
[8]
OR
7.
From the following summaries of the Balance Sheet of XY Ltd. s at 31st December 1996
and 1997 and additional information, prepare a statement showing sources and application
of funds and a schedule of changes in working capital:
Liabilities
1996(Rs.) 1997(Rs.)
Assets
1996(Rs.) 1997(Rs.)
Share Capital
2,50,000
3,00,000 Land & Buildings
2,25,000
2,15,000
General Reserve
55,000
65,000
Plant
1,75,000
1,99,000
P&L Account
31,000
31,500
Stock
1,10,000
79,000
Bank loan(Short term)
80,000
---
Debtors
90,000
69,900
Sundry Creditors
1,60,000
1,40,200 Cash
6,000
800
Provision for Taxation
30,000
35,000
Bank
---
8,000
6,06,000
5,71,700
6,06,000
5,71,700
Additional Information:
a) Depreciation was written off plant Rs. 15,000 in 1997
b) Dividend of Rs. 22,000 was paid during 1997
c) Income tax provision made during the year was Rs. 30,000
d) A piece of land has been sold during the year at cost.
[8]
8.a)
Define Break Even Analysis. Explain Break Even Chart briefly.
b)
Assuming that the cost structure and selling prices for remain the same in periods I and II,
find out:
Profit Volume ration i) Fixed Cost ii) Break Even Point for Sales iii) Profit when
sales are of Rs. 100,000 iv) Sales required to earn a profit of Rs. 20,000 and v)Margin
of safety at a profit of Rs. 15,000 vi) Variable Cost in Period II
[4+4]
Period
Sales
Cost
Profit
I
1,20,000
1,11,000
9,000
II
1,40,000
1,27,000
13,000
OR
9.
The monthly budgets for manufacturing overhead of a concern for two levels of activity
were as follows:
Capacity 60% 100%
Budgeted Production (Units) 600 1,000
Rs. Rs.
Wages 1,200 2,000
Consumable Stores 900 1,500
Maintenance 1,100 1,500
Power and Fuel 1,600 2,000
Depreciation 4,000 4,000
Insurance 1,0001,000
9, 800 12, 000
You are required to:
a) Indicate which of the items are fixed, variable and semi-variable
b) Prepare a budget for 80% capacity and
c) Find the total cost, both fixed and variable, per unit of output at 60%, 80% and 100%
capacity.
[8]
10.
What is the importance of Capital Budgeting? Explain the process and techniques of
capital Budgeting.
[8]
OR
11.
From the following details relating to two machines X and Y, suggest which machine
should be accepted
Particulars
Machine X
Machine Y
Rs.
Rs.
Cost
56,125
56,125
Estimated Life
5 years
5 years
Estimated Salvage Value
3,000
3,000
Annual Income after tax and Depreciation
Rs.
Rs.
Year 1
3,375
11,375
Year 2
5,375
9,375
Year 3
7,375
7,375
Year 4
9,375
5,375
Year 5
11,375
3,375
Overhauling charges at the end of 3rd year Rs. 25,000
Depreciation has been charged on Straight line method basis.
[8]
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This post was last modified on 16 March 2023