Download JNTUH (Jawaharlal nehru technological university) MCA (Master of Computer Applications) 1st Sem (First Semester) Regulation-R13 2018 January 811AE Accounting And Financial Management Previous Question Paper
R13
Code No: 811AE
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MCA I Semester Examinations, January - 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.a) Prepare a trial balance from the following information.
[4]
Rs.
Rs.
Rs.
Cash
25000 Sundry Debtors
25000
Equity Share
Sales
75000 Capital
120000
Sales Returns
5000 Furniture
10000
Closing Stock
45000 Land and Building
125000
Outstanding
Short-term Loan
10000 Salaries
5000
Long-term Loan
25000
b)
Amar Manufacturers Ltd reported the following results for the financial year 2016-17.
Determine the operating leverage, financial leverage and combined leverage for the
firm.
[4]
Rs.
Revenue
2,30,000
Variable Cost
1,15,000
Fixed Cost
50,000
Interest
10,000
c)
What are the ratios useful to determine the long-term solvency of a company? [4]
d)
Harvest Industries is selling its product at a price of Rs.250 per unit. Its variable cost
ratio is 65%. The annual fixed costs are Rs.2, 50,000. The company is planning to
reduce the selling price to Rs.225 per unit. What will be the increase or decrease in the
breakeven point?
[4]
e)
A company wants to purchase an asset that costs Rs.250, 000. The annual Cash Flows
after taxes are expected to be Rs.55, 000. The company accepts any investment which
has a pay-back period of 3 years or less. Should the company buy the asset?
[4]
PART - B
5 ? 8 Marks = 40
2.
The following Trial Balance is presented for Harper Corporation at the end of September
2017.
(in Rs. Thousands)
Debit
Credit
Cash
20,100
Debtors
2, 600
Stationery
500
Equipment
8,000
Creditors
5,400
Advance from Customers for October
Services
1,100
Paid-up Share Capital
15,300
Reserves & Surplus
9,400
31,200
31,200
The following transactions took place during the month of October 2017 (in Rs.
thousands).
Received, 600 cash from debtors in partial settlement
Services performed on credit during October: 7,500
Paid Employee Salaries: 200
Cleared 50% of the dues towards Creditors
Customers received services and adjusted the advance paid in
September.
Stationary consumed during October: 250
Required:
Prepare Ledger Accounts and Trial Balance for the month of October 2017.
[8]
OR
3.
Discuss the following accounting principles with suitable examples
a) Accrual Principle
b) Materiality Principle
c) Matching Principle
d) Conservatism Principle.
[8]
4.a)
Amber Solutions Ltd. has provided the following information from its financials.
Current Dividend: Rs.5.50; Cost of Equity: 15%
Determine the value of equity if the growth rate is i) 0% ii) 5% iii) 10%
b)
Dolphin Ltd. has reported a total assets Rs.65, 00,000. The assets are funded equally by
equity and debt. The cost of debt before taxes is 8%. The risk-free rate is 8% and the beta
of the firm is 1.5. The return from the market index for 2017 is 16%. The tax rate for the
firm is 30%. Determine the weighted average cost of capital of Dolphin Ltd.
[3+5]
OR
5.
Discuss the role and importance of Finance function in a modern business organization.
[8]
6.
The following information is available for the two companies, Domestic Ltd. and
International Ltd. for the Financial Year 2016, the first year of their operation.
(Rs. thousands)
Domestic
International
Cash
13,606
7,669
Debtors
23,045
19,951
Inventory
31,087
31,345
Other Current Assets
12,522
11,909
Current Liabilities
75,230
80,280
Revenue
115,225
79,804
Cost of Goods Sold
69,135
51,873
Operating Expenses
17,284
11,971
Interest on Borrowings
450
325
Tax rate
30%
30%
Preference Dividend
250
300
No. of Equity Shares of outstanding (in
thousands)
2000
2500
Determine the following ratios for the two companies:
a) Current ratio
b) Quick Ratio
c) Inventory Turnover Ratio
d) Inventory holding days
e) Debtors Turnover Ratio f) Average Collection Period.
[8]
OR
7.
The following transactions were reported for Omega Corporation Ltd. for the Financial
Year 2016. The Cash balance at the beginning of the year was 4,500.
1) Borrowed cash from the bank: 10,000
2) Issued shares for cash: 20,000
3) Invested cash in the equity shares of another company: 5,500
4) Performed services and collected cash: 8,250
5) Paid cash for operating expense: 2,725
6) Purchased equipment for cash: 3,500
7) Paid dividends to shareholders: 150
8) Repaid the bank loan: 2.500.
Required:
Classify the transactions into operating, investing and financing activities and determine
the cash balance at the end of the year.
[8]
8.
Alpha Ltd. has provided the following information.
Current level of sales: 10,000 units
Selling Price per unit: Rs.150;
Variable Cost per unit: Rs.60;
Annual Fixed Costs: Rs.7, 00,000
Determine:
a) Break Even Point
c) Margin of Safety at current level of sales
d) No. of units to be sold to derive a profit of Rs.1, 20,000
e) Expected profit at a sales volume of 12,000 units.
[8]
OR
9.
Discuss the different components of a master budget.
[8]
10.
What are the different sources of long-term finance a company can use to fund its assets?
[8]
OR
11.
A project requires an initial investment of Rs.12, 50,000 and has a useful life of 5 years.
During this period the project is expected to generate Cash Flows of Rs.3, 00,000 per
year for the first three years and Rs.3,50,000 per year for the next two years. If the cost of
capital of the project is 12%, determine the NPV of the project.
[8]
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This post was last modified on 16 March 2023