--- Content provided by FirstRanker.com ---
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER 01- EXAMINATION - SUMMER 2016
Subject Code: 2810001 Date: 11/05/2016
--- Content provided by FirstRanker.com ---
Subject Name: Accounting For Managers (AFM)
Time: 10:30 am — 01:30 pm Total Marks: 70
--- Content provided by FirstRanker.com ---
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
--- Content provided by FirstRanker.com ---
3. Figures to the right indicate full marks.
Q.1 (a) From the four alternative answers given against each of the following cases, 06 indicate the correct answer:(just state A, B, C or D)
--- Content provided by FirstRanker.com ---
A company had Current Assets of Rs. 4, 00,000 and Current Liabilities of Rs. 1, 00,000. Afterwards it purchased goods for Rs. 50,000 on credit. Calculate the Current Ratio after the purchase.A 1:3 B. 3:1
C. 4:1 D. 1:4
--- Content provided by FirstRanker.com ---
Goods drawn by the proprietor from the business for personal use.................
A. Increases capital and decreases assets. B. Increases assets and decreases expenses.
--- Content provided by FirstRanker.com ---
C. Decreases capital and decreases assets. D. Increases capital and increases assets.Outstanding expenses are related to.............
A. Nominal account. B. Personal account.
--- Content provided by FirstRanker.com ---
C. Representative personal account. D. Artificial personal account.
Profit or loss on depreciation fund investment is transferred to:
--- Content provided by FirstRanker.com ---
A. Depreciation Fund A/c. B: Asset A/c.C. Profit or Loss A/c. D. Bank A/c.
In case of Annuity Method, the amount of depreciation is:
--- Content provided by FirstRanker.com ---
A. Increasing every year. B. Fixed for all the year.
C. Decreasing every year. D. None of these.
--- Content provided by FirstRanker.com ---
Compound journal entry contains................A. More than one debit entry only. B. More than one credit entry only.
C. More than one debit entry or more than one credit entry or both. D. None of these.
--- Content provided by FirstRanker.com ---
(b) Define the following terms: 04
(1) Accounting Standards.
--- Content provided by FirstRanker.com ---
(i) IFRS.(111) Provisions.
(iv) GAAP.
--- Content provided by FirstRanker.com ---
(c) What do you mean by ‘Fund Flow Statement’? Discuss the importance of 04 Fund Flow Statement.
Q.2 (a) Who are the users of accounting information, and why do the users need 07 accounting information? How this information helpful to the users?
--- Content provided by FirstRanker.com ---
(b) Explain the analysis of following ratios. 07
(1) Net Profit Ratio
(11) Debt Equity Ratio
--- Content provided by FirstRanker.com ---
(111) Quick Ratio
Particulars Amount (in Rs.)
--- Content provided by FirstRanker.com ---
Paid up Capital 20,00,000Capital Reserve 2,00,000
9 % Debentures 8,00,000
--- Content provided by FirstRanker.com ---
Net Sales 14,00,000
Gross Profit 8,00,000
--- Content provided by FirstRanker.com ---
Indirect Expenses 2,00,000Current Assets 4,00,000
Current Liabilities 3,00,000
--- Content provided by FirstRanker.com ---
Opening Stock 50,000
Closing Stock is 20 % more than Opening Stock.
--- Content provided by FirstRanker.com ---
OR
Q.3 (a) What is Balance Sheet? Show the format of Balance Sheet in vertical form 07 under revised schedule VI of Companies Act, 1956 with imaginary figures.
(b) What do you mean by the term “depreciation’? What are its causes? Why do 07 firms provide depreciation?
--- Content provided by FirstRanker.com ---
OR
Q.3 (a) Rohan purchases a plant on 01.04.2007 for a sum of Rs. 2, 00,000 having a 07 useful life of five years. It is estimated that the plant will have a scrap value of Rs. 32,000 at the end of its useful life. Rohan decides to charge depreciation according to depreciation fund method. The depreciation fund investments are expected to earn interest @ 5 % p.a. Sinking fund table shows that Re. 0.180975 if invested yearly at 5 % p.a. produces Re. 1 at the end of five years. The investments are sold at the end of fifth year for a sum of Rs. 1, 30,000 and the scrap realized Rs. 34,000.
--- Content provided by FirstRanker.com ---
You are required to prepare the necessary accounts in the books of Rohan.OR
(b) What do you understand by Trend Analysis? Explain in brief with 07 hypothetical example.
--- Content provided by FirstRanker.com ---
Q.4 From the following Balance Sheet of Shivam Ltd. on 31* December 2012 and 2013, you are required to prepare:
(1) Statement of Changes in Working Capital; and
--- Content provided by FirstRanker.com ---
(2) Funds Flow Statement.| Liabilities | 31.12.13 | 31.12.12 | Assets | 31.12.13 | 31.12.12 |
|---|---|---|---|---|---|
| Share Capital | 4,50,000 | 4,50,000 | Plant and Machinery | 3,20,000 | 4,00,000 |
| General Reserve | 3,10,000 | 3,00,000 | Investments | 60,000 | 50,000 |
| P&L A/c | 35,000 | 30,000 | Closing Stock | 1,95,000 | 2,00,000 |
| Capital Reserve | 33,000 | 26,000 | Bills Receivable | 15,000 | 40,000 |
| Debentures | 2,70,000 | - | Sundry Debtors | 4,55,000 | 2,00,000 |
| Creditors | 75,000 | 90,000 | Cash at Bank | 1,97,000 | 1,59,000 |
| Bills Payable | 59,000 | 78,000 | |||
| Provision for Taxation | 10,000 | 75,000 | |||
| 12,42,000 | 10,49,000 | 12,42,000 | 10,49,000 |
Other details are as follows:
--- Content provided by FirstRanker.com ---
(1) During the year investments worth Rs. 8,000 were sold at a price of Rs. 8,500 and new investments worth Rs. 18,000 were purchased.
(2) Net profit of the year was Rs. 62,000 after providing for depreciation of Rs. 70,000 on Plant and Machinery and Rs. 10,000 provision for taxation.
--- Content provided by FirstRanker.com ---
(3) During the year Plant and Machinery worth Rs. 10,000 were sold at a price of Rs. 12,000 and the profit on the same was credited to Profit and Loss Account.(4) During the year Rs. 40,000 were paid as Dividend.
Q.4 (a) What are the various accounting concepts? Explain any four of them. 07
--- Content provided by FirstRanker.com ---
(b) From the following Income Statement of Malhotra Trading Company for the 07 year ending 31* March, 2012 and 2013, you are required to prepare a Comparative Income Statement and give your comments:
| For the year ended | 2012 and 2013 | |
|---|---|---|
| Particulars | 31.03.2012 Rs. | 31.03.2013 Rs. |
| Revenue From Operations | 6,00,000 | 7,20,000 |
| Add: Dividend Received | 30.000 | 90,000 |
| Total Revenue | 6,30,000 | 8,10,000 |
| Less: Cost of Goods Sold | 4,20,000 | 5,60,000 |
| Administration Expenses | 50,000 | 66,000 |
| Selling and Dist. Expenses | 25,000 | 23,000 |
| Interest on Debentures | 12,000 | 12,000 |
| Loss on Sale of Plant | 6,000 | 4,000 |
| Provision for Taxation | 40,000 | 48,000 |
| Net Profit | 77,000 | 97,000 |
Q.5 (a) Name AS- 9, AS-10 and AS-26. Explain any one in detail. 07
(b) From the following information, you are required to calculate the value of 07 Closing Inventory and Cost of Goods Sold assuming (a) Perpetual Inventory System and (b) Periodic Inventory System under FIFO method.
--- Content provided by FirstRanker.com ---
| Date | Transactions | Units | Price Per Unit (Rs.) |
|---|---|---|---|
| 02/01/2013 | Opening balance brought forward | 100 | 10 |
| 09/01/2013 | Purchases | 400 | 15 |
| 14/01/2013 | Sales | 300 | - |
| 25/01/2013 | Purchases | 500 | 20 |
| 29/01/2013 | Sales | 400 | - |
--- Content provided by FirstRanker.com ---
Q.5 Mr. Tushar decided to start a computer business. For this purpose he built the 14 first floor of his house at a cost of Rs. 2, 00,000 and invested a further sum of Rs. 3, 50,000 in this business.
He wanted to start, with 12 computers costing Rs. 40,000 each. He approached ICICI Bank and secured a loan to the extent of 75 % of the cost of computers. It was agreed that the loan will be repaid in four annual instalments are as follows:
At the end of First Year : Rs. 90,000 + Rs. 36,000 for interest
--- Content provided by FirstRanker.com ---
At the end of Second Year : Rs. 90,000 + Rs. 27,000 for interest
At the end of Third Year : Rs. 90,000 + Rs. 18,000 for interest
--- Content provided by FirstRanker.com ---
At the end of Fourth Year : Rs. 90,000 + Rs. 9,000 for interestHe started business on 1% April, 2002. On the same date he deposited Rs. 3, 30,000 in the Bank. He purchased Computers and paid 25 % of the value of computers from his bank and Rs. 3, 60, 000 out of bank loan availed. He deposited Rs. 10,000 for the electric connection with the Electricity Board and also deposited Rs. 1, 50,000 with the VSNL for internet and telephone connection.
He spent Rs. 40,000 for getting the Computer Café furnished and also spent Rs. 6,000 in getting the pamphlets printed and distributed.
--- Content provided by FirstRanker.com ---
All payments were to be made by cheques and all the receipts were to be deposited in the bank on the same day.
At the end of the year, the results were:
--- Content provided by FirstRanker.com ---
| in Rs. | |
|---|---|
| Purchases of Computer stationery like DVDs, CDs etc. | 92,000 |
| Revenue from fees received from students of Computer classes | 2,70,000 |
| Revenue on Account of Internet Facility | 2,20,000 |
| Revenue from sale of Computer Stationery | 1,60,000 |
| Wages paid to servant | 12,000 |
| Electricity Charges | 48,000 |
| Telephone Charges | 73,000 |
| Entertainment Expenses | 7,000 |
| General Expenses | 5,200 |
He withdrew Rs. 5,000 by cheque each month for his personal expenses and duly paid the bank loan.
You are required to pass the necessary journal entries in the books of Mr. Tushar.
--- Content provided by FirstRanker.com ---
OR
Q.5 From the following figures extracted from the books of Mr. Rohit, you are 14 required to prepare a Trading and Profit and Loss Account for the year ended 31" March, 2014 and a Balance Sheet as on that date after making the necessary adjustments:
--- Content provided by FirstRanker.com ---
| Particulars | Amount (in Rs.) |
|---|---|
| Drawings | 6,000 |
| Sundry Debtors | 38,200 |
| Purchases | 1,34,916 |
| Return Inward | 15,642 |
| Bills Receivable | 13,764 |
| 5 % Loan on Mortgage (01.04.2013) | 17,000 |
| Interest on Loan | 400 |
| Cash in Hand | 6,100 |
| Stock (01.04.2013) | 11,678 |
| Capital | 60,000 |
| Sundry Creditors | 16,802 |
| Sales | 2,22,486 |
| Bills Payable | 5,428 |
| Motor Vehicle | 18,000 |
| Land and Buildings | 24,000 |
| Bad Debts (Debit) | 1,250 |
| Carriage Outward | 2,808 |
| Provision for Bad Debts (Credit) | 1,420 |
| Return Outward | 2,692 |
| Discount Received | 880 |
| Carriage Inward | 7,858 |
| Establishment Expenses | 16,194 |
| Rent, Taxes and Insurance | 7,782 |
| Advertisement | 4,528 |
| General Expenses | 8,978 |
| Rent Received | 500 |
Adjustments:
--- Content provided by FirstRanker.com ---
(1) Depreciate land and building @ 5 % p.a. and motor vehicle @ 15 % p.a.(i) Salaries Rs. 1,400 and rates Rs. 800 are due.
(ii1) Provide provision for doubtful debts is to be maintained @ 5 % on Sundry Debtors.
--- Content provided by FirstRanker.com ---
(iv) Stock in hand on 31* March, 2014 is valued at Rs. 12,500.
(v) Goods costing Rs. 1,000 were taken by the proprietor for his personal use; no entry has been made in the books of accounts.
--- Content provided by FirstRanker.com ---
(vi) Prepaid insurance Rs. 350.(vii) Provide for manager’s commission @ 5 % on net profit after charging such commission.
(viii)A fire broke out on 01" April, 2014 destroying goods worth Rs. 4,700.
--- Content provided by FirstRanker.com ---
(ix) Goods costing Rs: 1,200 were sent to a customer on sale or return for Rs. 1,400 on 27" March, 2014, and have been recorded in the books as actual sales.
--- 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