FirstRanker.com
Firstranker's choice
Subject Code:2810001
--- Content provided by FirstRanker.com ---
Seat No.: Enrolment No.GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER (1) - EXAMINATION - SUMMER 2018
Subject Name: ACCOUNTING FOR MANAGERS (AFM)
Time: 10:30 AM TO 1:30 PM Total Marks: 70
--- Content provided by FirstRanker.com ---
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
--- Content provided by FirstRanker.com ---
Q1. (a) Multi choice Questions: 06
- Valuation of Intangible asset is associated with?
A. AS6 B. AS2
C. AS1 D. AS26 - Rate of depreciation as per Appendix I — Rules 5 of Income Tax Act for computer is?
--- Content provided by FirstRanker.com ---
A. 10% B. 1%
C. 60% D. 25% - “The owner is treated as creditor to the extent of his capital”, is an assumption of which concept?
A. Monetary Unit B. Business Entity
C. Going Concern D. Cost Concept - Which variable does not have debit balance under Trial Balance?
A. Goods Stolen B. Carriage Inward
C. Carriage Outward D. Loose Tools - International Accounting Standards Committee (IASC), was established in which year?
A. 1973 B. 1974--- Content provided by FirstRanker.com ---
C. 1975 D. 1976 - helps in understanding the level of working capital and its movement.
A. Cash Flow Statement B. Funds Flow Analysis
C. Financial Statement Analysis D. ABC Analysis
--- Content provided by FirstRanker.com ---
Q1. (b) Explain the terms: 04
--- Content provided by FirstRanker.com ---
- Going Concern
- Contingent Liabilities
- Management Accounting
- Book Value
Q1. (c) Explain qualitative characteristics of Financial Accounting. 04
--- Content provided by FirstRanker.com ---
Q2. (a) Discuss the steps in Accounting Process with appropriate illustrations. 07
(b) Journalize the transactions in the books of “Baaghi ltd” 07
- LIC Premium of Rs. 2000 paid by Cheque.
- Sold goods of Rs. 1000 to shraddha on credit
- Goods of Rs. 4000 were destroyed by fire.
- Sold goods of Rs. 8000 at 5% trade discount to Tiger on credit
- Received commission of Rs. 1000 from Arti
- Goods of Rs, 25000 were distributed as free samples for advertisements.
--- Content provided by FirstRanker.com ---
OR
(b) Cost of Raw material is Rs. 100, Market price of Raw Material is Rs. 110. 07
--- Content provided by FirstRanker.com ---
Selling expenses is Rs.20. What shall be the valuation of inventory as per AS 2.Q3. (a) What is Trial Balance? Explain how it ensures arithmetical accuracy. 07
(b) Sonakshi Textiles ltd. sought the advice of an investment advisor for 07
deployment of surplus funds of around Rs. 18 lacs in the stock market. The advisor advised to invest in Deepika Tubes ltd. and charged Rs. 5,000 as brokerage. Accordingly investing company bought 5000 shares of Deepika Tubes ltd,@ Rs. 350 per share from BSE through stock broker. Brokerage of 0.5% was charged. Determine cost of investment.
OR
--- Content provided by FirstRanker.com ---
Q3. (a) Explain the difference between Reserves and Provisions. 07
(b) Perform Horizontal Analysis on Profit and Loss Account of Golmaal ltd for 07
the year ending on 31st March, 2018 & Interpret the variables
| Particulars | 2017 (Rs in ‘000) | 2018 (Rs in ‘000) |
|---|---|---|
| Income | ||
| Sales | 210 | 270 |
| Expenditure | ||
| Employee Cost | 30 | 55 |
| Fuel | 10 | 25 |
| Audit Fee | 80 | 90 |
| Total Expenditure | 120 | 170 |
| EBDIT | 90 | 100 |
| Depreciation | 15 | 15 |
| EBIT | 75 | 85 |
| Interest | 8 | 5 |
| EBT | 67 | 80 |
| Tax | 50 | 50 |
| PAT | 17 | 30 |
Q4. (a) Draw the format of Corporate Profit and Loss account and explain the main Schedules in it. 07
(b) ABC ltd. is planning to purchase a machine. From the following data available under, you are required to determine cost of machine. 07
--- Content provided by FirstRanker.com ---
| QUOTATION | Amount (Rs.) |
|---|---|
| Invoice Price | |
| List Price | 55 lacs |
| Less Trade Discount | 01 Lacs |
| 54 Lacs | |
| Add Sales tax and Excise duty | 6 Lacs |
| 60 Lacs | |
| Credit Available on excise duty included above | Rs. 4 Lac |
| Transportation charges | Rs. 25000 |
| Installation charges | Rs. 75000 |
OR
Q4. (a) Explain the process to be undertaken for shifting the method of depreciation for an organization. 07
(b) Perform Common sized Analysis on Balance Sheet of Kaal ltd for the year ending on 31st March, 2018 & Interpret the variables 07
| Particulars | 2017 | 2018 |
|---|---|---|
| LIABILITIES | ||
| Equity | 40 | 42 |
| Reserves & Surplus | 500 | 520 |
| Long Term Debt | 90 | 100 |
| Current Liabilities | ||
| Bill Payable | 20 | 10 |
| Provisions | 40 | 20 |
| Total Liabilities | 690 | 692 |
| ASSETS | ||
| Fixed Assets | ||
| Machine | 200 | 250 |
| Furniture | 100 | 100 |
| Gross Block | 300 | 350 |
| Less : Acc. Depreciation | 50 | 30 |
| Net Block | 250 | 300 |
| Investments | 140 | 200 |
| Current Assets | ||
| Stock | 200 | 92 |
| Debtors | 100 | 100 |
| Total Assets | 690 | 692 |
Q5. Following is the data furnished by Reliable ltd. : Prepare the Balance Sheet as on that date based on above information. 14
Annual Sales (all credit) Rs. 36,00,000
--- Content provided by FirstRanker.com ---
Sales to Net worth 2.5 timesTotal Debts to Net worth 80%
Current liabilities to Net worth 25%
Current Ratio 3:1
Inventory Turnover Ratio (based on sales) 6 times
--- Content provided by FirstRanker.com ---
Average collection period 40 days in a year of 360 daysFixed Assets to Net worth 1.05:1
Share Capital to Reserves and Surplus 1:0.8
OR
From the given “Trial Balance” of “Secret Superstar Ltd. “as on 31-3-2017. Prepare Profit and Loss Account & determine Net Profit /Loss
--- Content provided by FirstRanker.com ---
| Particulars | Debit (Rs.) | Credit (Rs.) |
|---|---|---|
| Carriage Out ward | 1620 | |
| Goods burnt into fire and its loss | 2550 | |
| Bad debt and Bad debt Reserve | 4530 | |
| Insurance Premium (Rs. 3000 paid for the year ended 31-7-2017) | 1800 | |
| 12% Investment and Its Interest (1-1-2017) | 10,000 | |
| Salary and Wages (1:3) | 7000 | |
| Opening Stock of Stationery | 20,000 | |
| Stationery Purchased | 400 | |
| Advertisement Expenses and Goods distributed as sample | 16000 | |
| Personal A/c | 1000 | |
| Discount | 2000 | |
| Bad Debt Return | 2000 | |
| Apprentice Premium (Received for 2.5 years from 1-1-2017) | 1500 | |
| Brokerage | 50000 | |
| 5000 | 30600 | |
| 10000 | ||
| 1000 | ||
| 6000 | ||
| 5000 |
Adjustments:
1. Make Provision 10% on Bad Debt Reserve
2. Advertisement Material on hand is 10%, while 1/3 Advertisement Balance is transferred to next year
--- Content provided by FirstRanker.com ---
This download link is referred from the post: GTU MBA Last 10 Years 2010-2020 Question Papers || Gujarat Technological University