Download JNTUH (Jawaharlal nehru technological university) MCA (Master of Computer Applications) 1st Sem (First Semester) Regulation-R13 2017 August 811AE Accounting And Financial Management Previous Question Paper
R13
Code No: 811AE
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MCA I Semester Examinations, August - 2017
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) Explain the following accounting concepts:
i) the conservatism concept ii) the materiality concept.
[4]
b) What are the various sources of working capital finance?
[4]
c) Explain how investors and creditors would make use of Cash Flow Statement. [4]
d) What is Sales budget? What is its importance to budgeting process?
[4]
e) What are the advantages and limitations of Payback period method?
[4]
PART - B
5 ? 8 Marks = 40
2. M/s Anurag and Co. manages the publishing business. He has come to you for
help in preparing an income statement and a balance sheet for the year ended
Dec.31, 2016. Several items determined as of Dec.31, 2016 are presented below.
No dividends were paid this year.
All figures in Rs.000
Equity capital
40,000
Loan payable
72,000
Reserves & surplus 12,400
Accounts payable
6,000
( 31/12/2015)
Advertising
2000
Land
24,000
Expenses
Cash
17,000
Supplies
2,000
Rent expenses
2,400
Salary expenses
20,000
Building (net block) 1,00,000
Revenues
42,000
Interest expenses
700
Other expenses
1,300
Accounts receivable 3,000
a) prepare an income statement for the year ended 31st Dec.2016.
b) prepare a balance sheet as on Dec.31,2016.
[4+4]
OR
3.a)
What is ,,Double entry system of accounting? What are its advantages?
b) Prepare a cash book for a trader, enter the following transactions and ascertain the
balance as on 7th July 2015.
2015
Rs. 2015
Rs.
July 01 Balance in hand 2,500 July 04 Paid Daut Ram by Cheque 1,000
Balance at bank 35,000
Discount allowed 100
02 Received from "P" cheque 5,000 05 Salaries paid to staff in cash 2,000
Discount allowed to him 250
03 Purchased goods by cash 1,500 06 Bank withdrawal for office 5,000
07 Purchase of chair by cheque 5,000
Show cash, bank and discount balances.
[3+5]
4.a) What is the importance of Financial Management to an organization?
b) Gahlon Gearing Ltd. has a Degree of operating leverage 2 at its current
production and sales level of 10,000 units. The resulting operating income figure
is $1,000.
i) If sales are expected to increase by 20 percent from the current 10,000 unit sales
position, what would be the resulting operating profit?
ii) At the companys new sales position of 12,000 units, what is the firms new
degree of operating leverage figure? [3+5]
OR
5.a) The cost of specific sources of capital for Apollo Paper Mills Ltd., are as follows:
Cost of debt = 10.00 percent
Cost of preference = 12.00 percent
Cost of equity = 18.00 percent
The capital structure of the company is as follows:
Source of finance Book value (Rs. million) Market value (Rs. million)
Equity
50
120
Preference
10
9
Debt
80
70
Calculate the weighted average cost of capital for Apollo Paper Mills Ltd., using
book value weights and market value weights.
b) What do you understand by time value of money?
[6+2]
6.
A condensed balance sheet for Sheepwell Company prepared at the end of the
year appears as follows:
Assets ( in Rupees)
Liabilities and Shareholders Equity (Rs.)
Cash
55,000 Loan payable ( due 40,000
in 6 months)
Accounts receivable 1,55,000 Accounts payable
1,10,000
Inventory
2,70,000 Long term liabilities 3,30,000
Prepaid expenses
60,000 Equity shares, Rs.5 3,00,000
par
Plant&
5,70,000 Reserves & Surplus 4,20,000
Equipment(net)
Other assets
90,000
Total
12,00,000 total
12,00,000
During the year the company earned a gross profit of Rs. 11,16,000 on sales of
Rs. 27,90,000. Accounts receivable, inventory and plant assets remained almost
constant in amount throughout the year.
Compute the following:
a) Current ratio b) Quick ratio c) working capital d) debt ratio e) accounts
receivable turnover ( all sales were on credit) f) inventory turnover. [8]
OR
7.a) What is Quick ratio? Under what circumstances are short-term creditors most
likely to regard a companys quick ratio as more meaningful than its current ratio?
b) Explain any four of the profitability ratios for evaluating profitability. [3+5]
8.a) A company making single product has the following Sales and net profit for the
two half of the financial year.
Period
I half of the financial year II half of the financial year
Sales in Rs.
8,00,000
10,00,000
Net profit in Rs.
1,00,000
1,50,000
i) find breakeven point of production and ii) the margin of safety.
b) What are the applications of Break even analysis?
[5+3]
OR
9.
A company has fixed expenses of Rs.90,000 with sales at Rs. 3,00,000 and a
profit of Rs.60,000.
a) Calculate the profit/volume ratio.
b) If in the next period, the company suffered a loss of Rs.30,000 calculate the
sales volume.
c) What is the margin of safety for a profit of Rs. 60,000?
[8]
10. Two investment proposals are brought before a company with an initial
investment of Rs.1,20,00,000 in both the cases. The annual returns for the two
proposals are as shown below:
Description
Proposal 1
Proposa l 2
Return at the end of I year
Rs. 48,00,000
Rs. 56,00,000
II year
Rs. 80.00,000 Rs. 70,00,000
III year Rs. 50,00,000 Rs. 60,00,000
IV year Rs. 50,00,000 Rs. 40,00,000
Evaluate the two proposals on NPV basis at 12% discount and select the best one.
[8]
OR
11.a) Explain the concept of ,,working capital cycle and show the break up.
b) How are shares classified? What are their distinct features? [4+4]
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This post was last modified on 16 March 2023