Download JNTUH (Jawaharlal Nehru Technological University Hyderabad) MBA (Master of Business Administration) 1st Semester (First Semester) R17 2020 Jan 741AC Financial Accounting And Analysis Previous Question Paper
Code No: 741AC
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA I Semester Examinations, January - 2020
FINANCIAL ACCOUNTING AND ANALYSIS
Time: 3hours 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. Answer the following:
a) Explain any THREE accounting conventions. [5]
b) What is the difference between Journal and Ledger, Explain with examples? [5]
c) What are the possible reasons for keeping incomplete records? Explain any three?
What are the features of incomplete records? [5]
d) What is funds flow in accounting? Distinguish between Funds Flow and Cash Flow.[5]
e) What is Du Pont Chart Analysis? Draw the DuPont and explain its significance. [5]
PART - B 5 ? 10 Marks = 50
2.a) What is Book-Keeping? Differentiate between Single Entry and Double Entry with
examples.
b) What are generally accepted accounting principles (GAAP) issued by ICAI? [5+5]
OR
3.a) Discuss the following accounting standards accepted under IAS
i) AS2- Valuation of Inventory
ii) AS3- Cash flow statement
iii) AS6- Depreciation Accounting
iv) AS-10- Accounting for fixed assets
b) Explain the following:
i) Cash Vs Credit transactions
ii) Sundry Debtors Vs. Bills Receivables
iii) Simple average method of material issues [5+5]
4.a) Explain the concept of depreciation? What is accumulated depreciation? Discuss the
different methods of depreciation with their relative merits and demerits.
b) Explain the following:
i) Current Assets Vs. Fixed Assets
ii) Cash expenses Vs. non-cash expenses
iii) Depletion Vs. Amortization [5+5]
OR
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Code No: 741AC
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA I Semester Examinations, January - 2020
FINANCIAL ACCOUNTING AND ANALYSIS
Time: 3hours 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. Answer the following:
a) Explain any THREE accounting conventions. [5]
b) What is the difference between Journal and Ledger, Explain with examples? [5]
c) What are the possible reasons for keeping incomplete records? Explain any three?
What are the features of incomplete records? [5]
d) What is funds flow in accounting? Distinguish between Funds Flow and Cash Flow.[5]
e) What is Du Pont Chart Analysis? Draw the DuPont and explain its significance. [5]
PART - B 5 ? 10 Marks = 50
2.a) What is Book-Keeping? Differentiate between Single Entry and Double Entry with
examples.
b) What are generally accepted accounting principles (GAAP) issued by ICAI? [5+5]
OR
3.a) Discuss the following accounting standards accepted under IAS
i) AS2- Valuation of Inventory
ii) AS3- Cash flow statement
iii) AS6- Depreciation Accounting
iv) AS-10- Accounting for fixed assets
b) Explain the following:
i) Cash Vs Credit transactions
ii) Sundry Debtors Vs. Bills Receivables
iii) Simple average method of material issues [5+5]
4.a) Explain the concept of depreciation? What is accumulated depreciation? Discuss the
different methods of depreciation with their relative merits and demerits.
b) Explain the following:
i) Current Assets Vs. Fixed Assets
ii) Cash expenses Vs. non-cash expenses
iii) Depletion Vs. Amortization [5+5]
OR
R17
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5. From the following ledger balances of M/s Aravind and Company as on 31-12-2013,
prepare a) Trial Balance b) Final Accounts.
All figures are given in Rupees.
i) Capital 72000
ii) Creditors 17440
iii) Bills Payable 5054
iv) Sales 156364
v) Loan 24000
vi) Debtors 7770
vii) Salaries 8000
viii) Discount-Dr 2000
ix) postage 546
x) bad debts 574
xi) interest-Dr 2590
xii) insurance 834
xiii) Machinery 20000
xiv) Stock as on 01.01.13 = 19890
xv) purchases 124000
xvi) Wages 8600
xvii) buildings 47560
xviii) Furniture 32310 and
xix) Vehicles 28600 [10]
6. Why is Inventory Valuation necessary? Discuss various methods of Inventory
Valuation with their relative merits and demerits. [10]
OR
7. Define Goodwill? How does the Nature of Business and the Quality of Product affect
the value of good will of a firm? Discuss and explain any two methods of valuation
of goodwill with suitable examples. [10]
8. From the following information relating to A Limited, prepare
a) Statement of changes in the requirements of working capital
b) Funds Flow statement and
c) Cash flow statement
Liabilities (Rs.000) 2013 2014 Assets (Rs.000) 2013 2014
Share capital 300 400 Cash 30 90
Reserves 100 50 Receivables 105 150
Retained Earnings 30 60 Inventories 150 195
Payables 45 135 Fixed Assets 190 210
------- ------- ------- ------
475 645 475 645
------- ------- ------ ------
Additional Information:
The company purchased the worth of Rs. 40000 furniture, Rs. 50000 vehicles and
Rs. 10000 Loose Tools by issue of share capital
A Piece of fixed asset, book value of which is Rs. 10000/- depreciation on it is Rs. 3000/-,
sold for Rs. 5000/-
Tax paid during the year Rs. 43000
Dividend paid during the year Rs. 26000 [10]
S
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Code No: 741AC
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA I Semester Examinations, January - 2020
FINANCIAL ACCOUNTING AND ANALYSIS
Time: 3hours 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. Answer the following:
a) Explain any THREE accounting conventions. [5]
b) What is the difference between Journal and Ledger, Explain with examples? [5]
c) What are the possible reasons for keeping incomplete records? Explain any three?
What are the features of incomplete records? [5]
d) What is funds flow in accounting? Distinguish between Funds Flow and Cash Flow.[5]
e) What is Du Pont Chart Analysis? Draw the DuPont and explain its significance. [5]
PART - B 5 ? 10 Marks = 50
2.a) What is Book-Keeping? Differentiate between Single Entry and Double Entry with
examples.
b) What are generally accepted accounting principles (GAAP) issued by ICAI? [5+5]
OR
3.a) Discuss the following accounting standards accepted under IAS
i) AS2- Valuation of Inventory
ii) AS3- Cash flow statement
iii) AS6- Depreciation Accounting
iv) AS-10- Accounting for fixed assets
b) Explain the following:
i) Cash Vs Credit transactions
ii) Sundry Debtors Vs. Bills Receivables
iii) Simple average method of material issues [5+5]
4.a) Explain the concept of depreciation? What is accumulated depreciation? Discuss the
different methods of depreciation with their relative merits and demerits.
b) Explain the following:
i) Current Assets Vs. Fixed Assets
ii) Cash expenses Vs. non-cash expenses
iii) Depletion Vs. Amortization [5+5]
OR
R17
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5. From the following ledger balances of M/s Aravind and Company as on 31-12-2013,
prepare a) Trial Balance b) Final Accounts.
All figures are given in Rupees.
i) Capital 72000
ii) Creditors 17440
iii) Bills Payable 5054
iv) Sales 156364
v) Loan 24000
vi) Debtors 7770
vii) Salaries 8000
viii) Discount-Dr 2000
ix) postage 546
x) bad debts 574
xi) interest-Dr 2590
xii) insurance 834
xiii) Machinery 20000
xiv) Stock as on 01.01.13 = 19890
xv) purchases 124000
xvi) Wages 8600
xvii) buildings 47560
xviii) Furniture 32310 and
xix) Vehicles 28600 [10]
6. Why is Inventory Valuation necessary? Discuss various methods of Inventory
Valuation with their relative merits and demerits. [10]
OR
7. Define Goodwill? How does the Nature of Business and the Quality of Product affect
the value of good will of a firm? Discuss and explain any two methods of valuation
of goodwill with suitable examples. [10]
8. From the following information relating to A Limited, prepare
a) Statement of changes in the requirements of working capital
b) Funds Flow statement and
c) Cash flow statement
Liabilities (Rs.000) 2013 2014 Assets (Rs.000) 2013 2014
Share capital 300 400 Cash 30 90
Reserves 100 50 Receivables 105 150
Retained Earnings 30 60 Inventories 150 195
Payables 45 135 Fixed Assets 190 210
------- ------- ------- ------
475 645 475 645
------- ------- ------ ------
Additional Information:
The company purchased the worth of Rs. 40000 furniture, Rs. 50000 vehicles and
Rs. 10000 Loose Tools by issue of share capital
A Piece of fixed asset, book value of which is Rs. 10000/- depreciation on it is Rs. 3000/-,
sold for Rs. 5000/-
Tax paid during the year Rs. 43000
Dividend paid during the year Rs. 26000 [10]
S
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OR
9.a) Ramco Cements presents the following information and you are required to calculate
Funds From Operation.
Dr Profit and Loss Account Cr
----------------------------------------------------------------------------------------------------------------
By Gross Profit b/d 215000
To Operation Expenses 100000
To Depreciation 40000 By Gain on sale of plant 5000
To Loss on sale of building 10000
To Advertisement suspense a/c 5000
To Discount Allowed 500
To Discount on issue of shares 500
To Goodwill written off 12000
To Net Profit c/d 52000
----------- -----------
220000 220000
----------- -----------
b) The Balance Sheets of National Company as on 31st December, 2017 and 2018 has been
presented below:
Liabilities (Rs) 2017 2018 Assets (Rs) 2017 2018
Share capital 500000 700000 Buildings 80000 120000
Profit and Loss Account 100000 160000 Machinery 500000 800000
General Reserve 50000 70000 Stock 100000 75000
Sundry Creditors 153000 190000 Debtors 150000 160000
Bills payable 40000 50000 Cash 20000 20000
Expenses outstanding 4000 3000
Outstanding telephone
Charges 3000 2000
---------- ----------- --------- ----------
850000 1175000 850000 1175000
----------- ------------ ---------- ----------
From the above, prepare the statement of changes in the requirements of working capital.
[5+5]
10. Following is the summarized Balance Sheet of ABC Company as on 31-12-2015
Liabilities (Rs) Assets (Rs)
Equity share capital 250000 Goodwill 20000
6% preference capital 150000 Buildings 250000
General Reserve 20000 Machinery 175000
Profit and Loss Account 15000 Furniture 10000
5% Debentures 100000 Stock 90000
Sundry creditors 28000 Sundry debtors 21000
Bills payable 12000 Cash at Bank 5000
Preliminary expenses 4000
------------- ---------------
575000 575000
------------- ---------------
S
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Code No: 741AC
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA I Semester Examinations, January - 2020
FINANCIAL ACCOUNTING AND ANALYSIS
Time: 3hours 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. Answer the following:
a) Explain any THREE accounting conventions. [5]
b) What is the difference between Journal and Ledger, Explain with examples? [5]
c) What are the possible reasons for keeping incomplete records? Explain any three?
What are the features of incomplete records? [5]
d) What is funds flow in accounting? Distinguish between Funds Flow and Cash Flow.[5]
e) What is Du Pont Chart Analysis? Draw the DuPont and explain its significance. [5]
PART - B 5 ? 10 Marks = 50
2.a) What is Book-Keeping? Differentiate between Single Entry and Double Entry with
examples.
b) What are generally accepted accounting principles (GAAP) issued by ICAI? [5+5]
OR
3.a) Discuss the following accounting standards accepted under IAS
i) AS2- Valuation of Inventory
ii) AS3- Cash flow statement
iii) AS6- Depreciation Accounting
iv) AS-10- Accounting for fixed assets
b) Explain the following:
i) Cash Vs Credit transactions
ii) Sundry Debtors Vs. Bills Receivables
iii) Simple average method of material issues [5+5]
4.a) Explain the concept of depreciation? What is accumulated depreciation? Discuss the
different methods of depreciation with their relative merits and demerits.
b) Explain the following:
i) Current Assets Vs. Fixed Assets
ii) Cash expenses Vs. non-cash expenses
iii) Depletion Vs. Amortization [5+5]
OR
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5. From the following ledger balances of M/s Aravind and Company as on 31-12-2013,
prepare a) Trial Balance b) Final Accounts.
All figures are given in Rupees.
i) Capital 72000
ii) Creditors 17440
iii) Bills Payable 5054
iv) Sales 156364
v) Loan 24000
vi) Debtors 7770
vii) Salaries 8000
viii) Discount-Dr 2000
ix) postage 546
x) bad debts 574
xi) interest-Dr 2590
xii) insurance 834
xiii) Machinery 20000
xiv) Stock as on 01.01.13 = 19890
xv) purchases 124000
xvi) Wages 8600
xvii) buildings 47560
xviii) Furniture 32310 and
xix) Vehicles 28600 [10]
6. Why is Inventory Valuation necessary? Discuss various methods of Inventory
Valuation with their relative merits and demerits. [10]
OR
7. Define Goodwill? How does the Nature of Business and the Quality of Product affect
the value of good will of a firm? Discuss and explain any two methods of valuation
of goodwill with suitable examples. [10]
8. From the following information relating to A Limited, prepare
a) Statement of changes in the requirements of working capital
b) Funds Flow statement and
c) Cash flow statement
Liabilities (Rs.000) 2013 2014 Assets (Rs.000) 2013 2014
Share capital 300 400 Cash 30 90
Reserves 100 50 Receivables 105 150
Retained Earnings 30 60 Inventories 150 195
Payables 45 135 Fixed Assets 190 210
------- ------- ------- ------
475 645 475 645
------- ------- ------ ------
Additional Information:
The company purchased the worth of Rs. 40000 furniture, Rs. 50000 vehicles and
Rs. 10000 Loose Tools by issue of share capital
A Piece of fixed asset, book value of which is Rs. 10000/- depreciation on it is Rs. 3000/-,
sold for Rs. 5000/-
Tax paid during the year Rs. 43000
Dividend paid during the year Rs. 26000 [10]
S
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OR
9.a) Ramco Cements presents the following information and you are required to calculate
Funds From Operation.
Dr Profit and Loss Account Cr
----------------------------------------------------------------------------------------------------------------
By Gross Profit b/d 215000
To Operation Expenses 100000
To Depreciation 40000 By Gain on sale of plant 5000
To Loss on sale of building 10000
To Advertisement suspense a/c 5000
To Discount Allowed 500
To Discount on issue of shares 500
To Goodwill written off 12000
To Net Profit c/d 52000
----------- -----------
220000 220000
----------- -----------
b) The Balance Sheets of National Company as on 31st December, 2017 and 2018 has been
presented below:
Liabilities (Rs) 2017 2018 Assets (Rs) 2017 2018
Share capital 500000 700000 Buildings 80000 120000
Profit and Loss Account 100000 160000 Machinery 500000 800000
General Reserve 50000 70000 Stock 100000 75000
Sundry Creditors 153000 190000 Debtors 150000 160000
Bills payable 40000 50000 Cash 20000 20000
Expenses outstanding 4000 3000
Outstanding telephone
Charges 3000 2000
---------- ----------- --------- ----------
850000 1175000 850000 1175000
----------- ------------ ---------- ----------
From the above, prepare the statement of changes in the requirements of working capital.
[5+5]
10. Following is the summarized Balance Sheet of ABC Company as on 31-12-2015
Liabilities (Rs) Assets (Rs)
Equity share capital 250000 Goodwill 20000
6% preference capital 150000 Buildings 250000
General Reserve 20000 Machinery 175000
Profit and Loss Account 15000 Furniture 10000
5% Debentures 100000 Stock 90000
Sundry creditors 28000 Sundry debtors 21000
Bills payable 12000 Cash at Bank 5000
Preliminary expenses 4000
------------- ---------------
575000 575000
------------- ---------------
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Other Information:
Total Sales Rs. 4 Lakhs. 20 percent of which is made on credit. Gross Profit and Net Profit
( after tax) for the year ended amounted to Rs. 80000 and 20000 respectively.
Calculate and interpret the following ratios:
a) Current Ratio b) Liquid Ratio c) Proprietary fund ratio d) Fixed Assets to proprietary
fund ratio e) Debt-equity ratio f) Capital gearing ratio g) Gross Profit ratio h) Net Profit
Ratio i) Stock turnover Ratio j) Debtors turnover ratio k) Return on proprietors fund
l) Turnover to fixed assets ratio [10]
OR
11. From the following information, prepare the Balance Sheet of PQR Company Limited as
on 31-03.2012, with as many details as possible
a) paid up capital Rs. 50 lakhs
b) Plant and Machinery Rs. 125 Lakhs
c) Total Annual Sales Rs. 500 lakhs
d) Gross profit margin 25 percent
e) Annual Credit sales 80 percent of net sales
f) Current ratio 2 (7) Inventory turnover ratio 4
g) Fixed assets turnover ratio 2
h) Sales returns 20 percent of sales
i) Average collection period 73 days
j) Bank credit to trade credit 2
k) cash to inventory 1:15
l) Total debt to current liabilities 3 [10]
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This post was last modified on 23 October 2020