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Download JNTUH MCA 1st Sem R13 2019 April-May 811AE Accounting And Financial Management Question Paper

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This post was last modified on 16 March 2023

JNTUH MCA 1st Sem Last 10 Years 2023-2013 Question Papers R20-R09 || Jawaharlal nehru technological university


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Code No: 811AE

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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.

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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 x 4 Marks =20

  1. What is double entry system of accounting? What are its benefits? [4]
  2. What is the meaning of weighted average of cost of capital? [4]
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  4. What is solvency? State two of the important solvency ratios. [4]
  5. What is a sales budget? What is its significance to other budgets? [4]
  6. What are the advantages and disadvantages of Payback period method in capital budgeting? [4]

PART -B

5 x 8 Marks = 40

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  1. State under what heading (Personal, Real, or Nominal) would you classify each of the following accounts.
    1. salary prepaid account
    2. salary outstanding account
    3. rent account
    4. bank account
    5. insurance unexpired
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    7. proprietor’s account
    8. bad debts account
    9. furniture account
    10. goodwill account
    11. patents account [8]
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    OR

    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 Capital 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
    1. What are the various roles of finance manager in an organization?
    2. What are preference shares? [6+2]
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    OR

    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]

  2. Complete the balance sheet and sales data (fill in the blanks) using the following financial data: [8]
    Current ratio 1.5

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    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

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    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

    Compute cash from operations from-the following figures:

    1. Profit for the year 2012 is a-sum of Rs. 10,000 after providing for depreciation of Rs.2000.
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    3. The current assets of the business for the year ending 31 Dec. 2011 and 2012 are as follows:
    Particulars 31" Dec 2011 31 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]

  3. 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 product 30,000 1,00,000 2,00,000
    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

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    Comparative financial data for the Evergreen Co. is given below. Prepare a funds flow statement.

    liabilities 2013 (Rs.,000) 2014 (Rs.,000) Assets 2013 (Rs.,000) 2014 (Rs.,000)
    Share capital 720 840 Fixed assets 1200 1440
    General reserve 240 300 Less: accrd depn 240 300
    Capital reserve --- 12 Net fixed assets 960 1140
    P& L alc 120 240 Investment. at cost 216 216
    7% debentures 360 240 Inventory at-cost 240 324
    Creditors for expenses 12 14.4 Sundry debtors (less provision) 270 294
    creditors for supply of goods 192 300 Bills receivable 48 78
    Proposed dividends 36 42 Prepayment exp 12 14.4
    Provision for taxation 84 90 Misc. expenses 14 12
    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]

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  5. 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

    1. What is IRR and how is it calculated?
    2. 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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