Download JNTUH (Jawaharlal Nehru Technological University Hyderabad) MBA (Master of Business Administration) 1st Semester (First Semester) R17 2018 July 741AC Financial Accounting And Analysis Previous Question Paper
Code No: 741AC
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA I Semester Examinations, June/July-2018
FINANCIAL ACCOUNTING AND ANALYSIS
Time: 3 hours Max.Marks:75
Note: This question paper contains two parts A and B.
Part A is compulsory which carries 25 marks. Answer all questions in Part A. Part B
consists of 5 Units. Answer any one full question from each unit. Each question carries 10
marks and may have a, b, c as sub questions.
PART - A 5 ? 5 Marks = 25
1.a) What are the limitations of Accounting? [5]
b) Under what conditions, Revenue expenditure becomes capital expenditure? [5]
c) Why is Single entry system of Accounting considered as an incomplete system? [5]
d) How can the Net increase in working capital be computed? [5]
e) How do you compute ?Operating Expenses Ratio?? [5]
PART - B 5 ? 10 Marks = 50
2. What are the basic Accounting records to be maintained in a business organization that is
adopting Double entry system of Accounting? Elaborate the procedure in detail. [10]
OR
3. What do you understand by ?Generally Accepted Accounting Principles?? Enumerate the
various institutions that influence the Indian GAAP. [10]
4.a) What are the objectives of preparing a Trial Balance? How can you validate the balances
entered in either column of a Trial Balance?
b) What type of errors cannot be disclosed in a Trial Balance? [5+5]
OR
5. Aswin purchased a machine for Rs. 2,50,000 with an expected life of 10 years, on
1
st
April, 2010 and spent Rs. 20,000 towards transportation and installation. He followed
straight line method for providing depreciation for 2 years and found unsuitable. On
1
st
April, 2012, he switched over to Diminishing balance method and continued up to
31
st
March, 2015. Prepare Machinery Account for the entire period and ascertain the book
value on 1
st
April, 2015. [10]
6.a) What factors do you consider while deciding the pricing methods for materials?
b) The following transactions occur in purchase and issue of materials.
Jan.2 Purchased 4,000 units @ Rs.4.00 per unit,
Jan.20. Purchased 500 units @ Rs.5.00 per unit
Feb.5. Issued 2,000 units
Feb.10. Purchased 6,000 units @ Rs.6.00 per unit
Feb.12. Issued 4,000 units
Mar.2. Issued 1,000 units
Mar.15. Purchased 4,500 units @ Rs.5.50 per unit
Mar.20. Issued 3,000 units
R17
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Code No: 741AC
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA I Semester Examinations, June/July-2018
FINANCIAL ACCOUNTING AND ANALYSIS
Time: 3 hours Max.Marks:75
Note: This question paper contains two parts A and B.
Part A is compulsory which carries 25 marks. Answer all questions in Part A. Part B
consists of 5 Units. Answer any one full question from each unit. Each question carries 10
marks and may have a, b, c as sub questions.
PART - A 5 ? 5 Marks = 25
1.a) What are the limitations of Accounting? [5]
b) Under what conditions, Revenue expenditure becomes capital expenditure? [5]
c) Why is Single entry system of Accounting considered as an incomplete system? [5]
d) How can the Net increase in working capital be computed? [5]
e) How do you compute ?Operating Expenses Ratio?? [5]
PART - B 5 ? 10 Marks = 50
2. What are the basic Accounting records to be maintained in a business organization that is
adopting Double entry system of Accounting? Elaborate the procedure in detail. [10]
OR
3. What do you understand by ?Generally Accepted Accounting Principles?? Enumerate the
various institutions that influence the Indian GAAP. [10]
4.a) What are the objectives of preparing a Trial Balance? How can you validate the balances
entered in either column of a Trial Balance?
b) What type of errors cannot be disclosed in a Trial Balance? [5+5]
OR
5. Aswin purchased a machine for Rs. 2,50,000 with an expected life of 10 years, on
1
st
April, 2010 and spent Rs. 20,000 towards transportation and installation. He followed
straight line method for providing depreciation for 2 years and found unsuitable. On
1
st
April, 2012, he switched over to Diminishing balance method and continued up to
31
st
March, 2015. Prepare Machinery Account for the entire period and ascertain the book
value on 1
st
April, 2015. [10]
6.a) What factors do you consider while deciding the pricing methods for materials?
b) The following transactions occur in purchase and issue of materials.
Jan.2 Purchased 4,000 units @ Rs.4.00 per unit,
Jan.20. Purchased 500 units @ Rs.5.00 per unit
Feb.5. Issued 2,000 units
Feb.10. Purchased 6,000 units @ Rs.6.00 per unit
Feb.12. Issued 4,000 units
Mar.2. Issued 1,000 units
Mar.15. Purchased 4,500 units @ Rs.5.50 per unit
Mar.20. Issued 3,000 units
R17
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From the above, prepare stores ledger account in two ways: (i) by adopting LIFO method,
and (ii) by adopting FIFO method of charging material issues. What would be the
valuation of stock at the end of the period according to each of the methods? [4+6]
OR
7. Define the concept ?Goodwill? and bring out the different factors that influence the value
of Goodwill of a business firm. Illustrate with imaginary data, any two popular methods of
Goodwill. [10]
8. From the following abridged balance sheets of Hansraj as on 31
st
March,2015 and 2016,
you are required to prepare a schedule of changes in working capital and a fund flow
statement: [10]
Liabilities 31.3.2015 31.3.2016 Assets 31.3.2015 31.3.2016
Share
capital
Rs.3,00,000 Rs.4,50,000 Fixed Assets Rs.5,00,000 Rs.6,00,000
Long term
borrowings
1,10,000 1,30,000 Less
(Accumulated
Depreciation)
(50,000)
(60,000)
Short term
borrowings
80,000
70,000 Net value of
Assets
4,50,000 5,40,000
Current
liabilities
40,000
30,000 Current
Assets
50,000 1,00,000
P&L Account 30,000 40,000
5,30,000 6,80,000 5,30,000 6,80,000
OR
9.a) What are the differences between Cash flow statements and Fund flow statements?
b) What are the limitations of Cash flow statements?
c) How are cash flows classified as per AS-3? [5+2+3]
10. The following financial statement is summarized from the books of Akhilesh Ltd. as
on 31
st
March, 2016: [10]
Liabilities Amount (Rs.) Assets Amount (Rs.)
Paid up capital 15,00,000 Fixed Assets 16,50,000
Reserves & surplus 6,00,000 Stock in trade 9,10,000
Debentures 5,00,000 Book Debts 12,40,000
Bank overdraft 2,00,000 Short term
investments
1,60,000
Sundry creditors 12,00,000 Cash 40,000
40,00,000 40,00,000
Additional information:
Annual sales: Rs. 74,40,000 and Gross profit: Rs. 7,44,000
Bank overdraft is payable on demand
You are required to calculate the following ratios for the year and comment on the
financial position as revealed by these ratios:
a) Debt-Equity Ratio b) Current Ratio c) Proprietary Ratio
d) Gross Profit Ratio e) Debtor-Turnover ratio, and f) Stock-Turnover ratio.
OR
11.a) What are the objectives setting up Accounting standards for business Units?
b) Discuss briefly the various types of Solvency ratios. [5+5]
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This post was last modified on 23 October 2020