Download JNTUH (Jawaharlal nehru technological university) MCA (Master of Computer Applications) 1st Sem (First Semester) Regulation-R13 2019 April-May 811AE Accounting And Financial Management Previous Question Paper
R13
Code No: 811AE
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MCA I Semester Examinations, April/May - 2019
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.a) What is double entry system of accounting? What are its benefits?
[4]
b) What is the meaning of weighted average of cost of capital?
[4]
c)
What is solvency? State two of the important solvency ratios.
[4]
d)
What is a sales budget? What is its significance to other budgets?
[4]
e) What are the advantages and disadvantages of Payback period method in capital
budgeting?
[4]
PART - B
5 ? 8 Marks = 40
2.
State under what heading (Personal, Real, or Nominal) would you classify each of the
following accounts.
a) salary prepaid account
b) salary outstanding account
c) rent account
d) bank account
e) insurance unexpired
f) proprietor's account
g) bad debts account
h) furniture account
i) goodwill account
j) patents account
[8]
OR
3.
The following balances are extracted from the books of Mr. Ajit Borkar. Prepare Trial
Balance as on 31-12- 2018.
[8]
a/c balance
Rs a/c balance
Rs.
Stock (1-1-2018)
15,000 purchases
1,47,850
drawings
37,400
Ca
pital
1,25,000
Discounts received
500 Discount allowed
475
Sales
1,67,675 furniture
16,500
Sundry creditors
37,500 Bank loan
60,500
Rent
36,250 Printing charges
750
Sundry expenses
10,500 Freight
1,750
taxes
4,750 machinery
1,57,700
Bills receivable
26,250 Bills receivable
15,850
Insurance
600 Carriage outward
750
4.a)
What are the various roles of finance manager in an organization?
b)
What are preference shares?
[6+2]
OR
5.
Pradhan Enterprises is currently selling 400 units per year. If the selling price per unit
is Rs.1,000, variable cost per unit is Rs.600, and fixed costs are Rs.1,00,000 what is
Pradhan's Degree of Operating Leverage at its current level of operations? What will
be DOL, if the quantity manufactured and sold rises to 600 units?
[8]
6.
Complete the balance sheet and sales data (fill in the blanks) using the following
financial data:
[8]
Current ratio
1.5
Acid test ratio
1.2
Total assets turnover ratio
1.5
Days outstanding in accounts receivable
40 days
Gross profit margin
20 percent
Inventory turnover ratio
5
Balance Sheet
Equity capital Rs. 50,000
Plant and equipment -------
Retained earnings Rs. 60,000
inventories -------
Debt ---------
Accounts receivables --------
Cash -------
--------
-------
Sales --------
Cost of goods sold -------
OR
7.
Compute cash from operations from the following figures:
a) Profit for the year 2012 is a sum of Rs. 10,000 after providing for depreciation of
Rs.2000.
b) The current assets of the business for the year ending 31st Dec. 2011 and 2012 are as
follows:
Particulars
31st Dec 2011
31st Dec 2012
Sundry Debtors
Rs. 10,000
Rs. 12,000
Provision for doubtful debts
1,000
1,200
Bills receivable
4,000
3,000
Sundry creditors
8,000
9,000
Bills payable
5,000
6,000
Inventories
5,000
8,000
Short term investments
10,000
12,000
Outstanding expenses
1,000
1,500
Prepaid expenses
2,000
14,000
Accrued income
3,000
4,000
Income received in advance
2,000
1,000
[8]
8.
Srikanth Glass Limited manufactures three different products P,Q and R. Data for the
products are given below:
particulars
`P' ( Rs.)
`Q' ( Rs. ) `R' ( Rs.)
Selling price per unit
30
50
80
Variable cost per unit
20
30
40
Fixed cost attributable to the 30,000
1,00,000
2,00,000
product
Sales in units
5,000 units
8,000 units
6,000 units
Calculate the break -even point for each product and for the company as a whole.
[8]
OR
9.
Comparative financial data for the Evergreen Co. is given below. Prepare a funds flow
statement.
liabilities
2013
2014
Assets
2013
2014
(Rs.,000) (Rs.,000)
(Rs.,000)
(Rs.,000)
Share capital
720
840
Fixed
1200
1440
assets
General
240
300
Less:
240
300
reserve
accrd depn
Capital reserve ---
12
P& L a/c
120
240
Net fixed 960
1140
assets
7% debentures 360
240
Investment 216
216
at cost
Inventory
240
324
at cost
Creditors for 12
14.4
Sundry
270
294
expenses
debtors
(less
---
---
provision)
creditors
for 192
300
Bills
48
78
supply
of
receivable
goods
Proposed
36
42
Prepayment 12
14.4
dividends
exp
Provision for 84
90
Misc.
14
12
taxation
expenses
1764
2078.4
1764
2078.4
During the year 2014 fixed asset, WDV Rs.12,000( depreciation written off Rs.36,000)
was sold for Rs.9,000. The proposed dividend of last year was paid in 2014. During the
year 2014 investments costing Rs.96,000 were sold and later in the year investments of
the same cost were purchased.
Debentures were redeemed at a premium of 10% in 2014. Liability for taxation for
2013 came to Rs.66,000.
During the year 2014 bad debts written off was Rs.18,000 against the provision
account.
[8]
10.
Pioneer Chemicals is evaluating system for waste disposal. System A which has life of
4 years. The initial out lay and operating cost for the system is expected to be as
follows:
particulars
Rs. in millions
Initial outlay
3.2
Annual operating costs
1.2
If the cost of the capital is 12%, calculate the present value of total cost for the life of
the waste disposal system at the discounted rate.
[8]
OR
11.a) What is IRR and how is it calculated?
b) The cash flows in Rupees for three alternative A, B and C are as given below in
Rupees:
year
A
B
C
0
2,00,000
3,00,000
2,10,000
1
40,000
50,000
45,000
2
50,000
60,000
50,000
3
60,000
80,000
45,000
4
25,000
90,000
60,000
5
25,000
80,000
20,000
If the total funds availability is limited to Rs.5.5 Lakhs, which investments will you
choose using Payback period approach?
[3+5]
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This post was last modified on 16 March 2023