Download JNTUH MBA 1st Semester 2017 Feb Financial Accounting and Analysis Question Paper

Download JNTUH (JNTU Hyderabad) MBA First Year (1st Semester) 2017 Feb Financial Accounting and Analysis Question Paper.

HallTicketNo QuestionPaperCode:CMB002
J a w a h a r l a l N e hr u T e c h n ol o g i c a l U n i v e r s i t y H yd e r a b a d
.
MBAISemesterEndExaminations(Regular)-February,2017
Regulation: .?R16
FINANCIALACCOUNTINGANDANALYSIS
(MasterofBusinessAdministration)
Time: 3Hours MaxMarks: 70
AnswerONEQuestionfromeachUnit
AllQuestionsCarryEqualMarks
Allpartsofthequestionmustbeansweredinoneplaceonly
UNIT?I
1. (a) ?Accountingisthelanguageofbusiness?-Explainthestatementwithitspracticalimplications.
[7M]
(b) ?Accountingisaserviceactivity. Itsfunctionistoprovidequalitativeinformation,Primarily
?nancialinnature,abouteconomicentitiesthatisintendedtobeusefulinmakingeconomic
decisions.? [7M]
2. (a) ?AccountingConventionsareadoptedtomakethe?nancialstatementsclearandmeaningful?.
Elucidatethestatementwithimportantconventionsofaccounting. [8M]
(b) ?EverybusinesstransactionhastwoelementsORaspects?Justifyandexplainthestatement
withsuitableexamples. [6M]
UNIT?II
3. (a) GiveaccountingequationforthefollowingtransactionsofHiteshfortheyear2015. [8M]
i. StartedbusinesswithcashRs.18,000.
ii. PaidrentinadvanceRs.400.
iii. PurchasedgoodsforcashRs.5000andoncreditRs.2,000.
iv. SoldgoodsforcashRs.4,000(costingRs.2,400).
v. RentpaidRs.1,000andrentoutstandingRs.200.
vi. Boughtmotor-cycleforpersonaluseRs.500.
vii. PurchasedequipmentsforcashRs.500.
viii. PaidtocreditorsRs.600.
(b) TheTable1TrialBalancehasbeenpreparedwrongly.Youareaskedtopreparethetrialbalance
correctly. [6M]
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HallTicketNo QuestionPaperCode:CMB002
J a w a h a r l a l N e hr u T e c h n ol o g i c a l U n i v e r s i t y H yd e r a b a d
.
MBAISemesterEndExaminations(Regular)-February,2017
Regulation: .?R16
FINANCIALACCOUNTINGANDANALYSIS
(MasterofBusinessAdministration)
Time: 3Hours MaxMarks: 70
AnswerONEQuestionfromeachUnit
AllQuestionsCarryEqualMarks
Allpartsofthequestionmustbeansweredinoneplaceonly
UNIT?I
1. (a) ?Accountingisthelanguageofbusiness?-Explainthestatementwithitspracticalimplications.
[7M]
(b) ?Accountingisaserviceactivity. Itsfunctionistoprovidequalitativeinformation,Primarily
?nancialinnature,abouteconomicentitiesthatisintendedtobeusefulinmakingeconomic
decisions.? [7M]
2. (a) ?AccountingConventionsareadoptedtomakethe?nancialstatementsclearandmeaningful?.
Elucidatethestatementwithimportantconventionsofaccounting. [8M]
(b) ?EverybusinesstransactionhastwoelementsORaspects?Justifyandexplainthestatement
withsuitableexamples. [6M]
UNIT?II
3. (a) GiveaccountingequationforthefollowingtransactionsofHiteshfortheyear2015. [8M]
i. StartedbusinesswithcashRs.18,000.
ii. PaidrentinadvanceRs.400.
iii. PurchasedgoodsforcashRs.5000andoncreditRs.2,000.
iv. SoldgoodsforcashRs.4,000(costingRs.2,400).
v. RentpaidRs.1,000andrentoutstandingRs.200.
vi. Boughtmotor-cycleforpersonaluseRs.500.
vii. PurchasedequipmentsforcashRs.500.
viii. PaidtocreditorsRs.600.
(b) TheTable1TrialBalancehasbeenpreparedwrongly.Youareaskedtopreparethetrialbalance
correctly. [6M]
Page1of5



Table1
Nameofaccounts Debitbalance Creditbalance
Cashinhand 2,000
Purchasesreturns 4,000
Wages 8,000
Establishmentexpenses 12,000
Capital 22,000
Carriageoutward 2,000
Discountreceived 1,200
Commissionearned 800
Machinery 20,000
Stock 10,000
Creditors 12,000
Sales 28,000
Purchases 28,000
Bankoverdraft 14,000
Grandtotal 58,000 58,000
4. (a)RamandShyamBros.acquiredamachineonJuly1,2014atacostof?70,000andspent?5,000
onitsinstallation. The?rmwriteso?depreciation@10%onstraightlinemethod. Thebooks
areclosedonDecember31everyyear. Showthemachineryanddepreciationaccountforthree
years. [6M]
(b)FromtheTable2TrialbalanceofRavienterprises,preparethe?nalaccountsfortheyearended
31stMarch,2015: [8M]
Table2
Particulars Debit(Rs) Credit(Rs)
Landandbuilding 50,000
Purchases 1,10,000
Stock 40,000
Returns 1,500 2,500
Wages 10,000
Salaries 9,000
O?ceexpenses 2,400
Carriageinwards 1,200
Carriageoutwards 2,000
Discounts 750 1,200
Baddebts 1,200
Sales 2,05,000
Capitalaccount 1,30,000
Insurance 1,500
Commission 1,500
Plantandmachinery 50,000
Furnitureand?xtures 10,000
Billsreceivable 20,000
Sundrydebtors 40,000
Sundrycreditors 25,000
Cashinhand 1,500
Cashatbank 4,500
O?ceequipment 12,000
Billspayable 2,350
Total 3,67,550 3,67,550
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HallTicketNo QuestionPaperCode:CMB002
J a w a h a r l a l N e hr u T e c h n ol o g i c a l U n i v e r s i t y H yd e r a b a d
.
MBAISemesterEndExaminations(Regular)-February,2017
Regulation: .?R16
FINANCIALACCOUNTINGANDANALYSIS
(MasterofBusinessAdministration)
Time: 3Hours MaxMarks: 70
AnswerONEQuestionfromeachUnit
AllQuestionsCarryEqualMarks
Allpartsofthequestionmustbeansweredinoneplaceonly
UNIT?I
1. (a) ?Accountingisthelanguageofbusiness?-Explainthestatementwithitspracticalimplications.
[7M]
(b) ?Accountingisaserviceactivity. Itsfunctionistoprovidequalitativeinformation,Primarily
?nancialinnature,abouteconomicentitiesthatisintendedtobeusefulinmakingeconomic
decisions.? [7M]
2. (a) ?AccountingConventionsareadoptedtomakethe?nancialstatementsclearandmeaningful?.
Elucidatethestatementwithimportantconventionsofaccounting. [8M]
(b) ?EverybusinesstransactionhastwoelementsORaspects?Justifyandexplainthestatement
withsuitableexamples. [6M]
UNIT?II
3. (a) GiveaccountingequationforthefollowingtransactionsofHiteshfortheyear2015. [8M]
i. StartedbusinesswithcashRs.18,000.
ii. PaidrentinadvanceRs.400.
iii. PurchasedgoodsforcashRs.5000andoncreditRs.2,000.
iv. SoldgoodsforcashRs.4,000(costingRs.2,400).
v. RentpaidRs.1,000andrentoutstandingRs.200.
vi. Boughtmotor-cycleforpersonaluseRs.500.
vii. PurchasedequipmentsforcashRs.500.
viii. PaidtocreditorsRs.600.
(b) TheTable1TrialBalancehasbeenpreparedwrongly.Youareaskedtopreparethetrialbalance
correctly. [6M]
Page1of5



Table1
Nameofaccounts Debitbalance Creditbalance
Cashinhand 2,000
Purchasesreturns 4,000
Wages 8,000
Establishmentexpenses 12,000
Capital 22,000
Carriageoutward 2,000
Discountreceived 1,200
Commissionearned 800
Machinery 20,000
Stock 10,000
Creditors 12,000
Sales 28,000
Purchases 28,000
Bankoverdraft 14,000
Grandtotal 58,000 58,000
4. (a)RamandShyamBros.acquiredamachineonJuly1,2014atacostof?70,000andspent?5,000
onitsinstallation. The?rmwriteso?depreciation@10%onstraightlinemethod. Thebooks
areclosedonDecember31everyyear. Showthemachineryanddepreciationaccountforthree
years. [6M]
(b)FromtheTable2TrialbalanceofRavienterprises,preparethe?nalaccountsfortheyearended
31stMarch,2015: [8M]
Table2
Particulars Debit(Rs) Credit(Rs)
Landandbuilding 50,000
Purchases 1,10,000
Stock 40,000
Returns 1,500 2,500
Wages 10,000
Salaries 9,000
O?ceexpenses 2,400
Carriageinwards 1,200
Carriageoutwards 2,000
Discounts 750 1,200
Baddebts 1,200
Sales 2,05,000
Capitalaccount 1,30,000
Insurance 1,500
Commission 1,500
Plantandmachinery 50,000
Furnitureand?xtures 10,000
Billsreceivable 20,000
Sundrydebtors 40,000
Sundrycreditors 25,000
Cashinhand 1,500
Cashatbank 4,500
O?ceequipment 12,000
Billspayable 2,350
Total 3,67,550 3,67,550
Page2of5



Adjustments:
1.ClosingstockamountedtoRs.60,000.
2.Outstandingliabilities;WagesRs.2,000andRentRs.3,000.
3.Depreciation;Landandbuildingsat5%,Plantandmachineryat10%,O?ceequipmentsat
10% andFurnitureandFixturesat10%.
4.Providefurtherbaddebtsreserveat5%onSundrydebtors.
5.InsurancepremiumprepaidRs.200.
6.Provideinterestoncapitalat5%.
UNIT?III
5. (a)A?rmmaintainsitsstoresledgeronthebasisofFIFOmethod.Followingisthesummaryofthe
receiptsandissuesofrawmaterialsduringthemonthofApril2006: [8M]
April01Openingbalance300units@Rs.22perunit?03IssuevideMaterialrequisitionNo.14,
150units.
?08PurchaseorderNo.07,200units@25perunit.
?12PurchaseorderNo.09,400units@23perunit
?17IssuevideMaterialrequisitionNo.16,500units.
?20IssuevideMaterialrequisitionNo.18,100units.
?23PurchaseorderNo.11,600units@20perunit.
?25IssuevideMaterialrequisitionNo.26,600units.
?28PurchaseorderNo.12,200units@26perunit.
?29IssuevideMaterialrequisitionNo.32,300units.
?30Shortage10units
(b)Criticallyexaminethedi?erenttypesofpreferenceShares. [6M]
6. (a)Whatisanordinaryshare?Howdoesitdi?erfromapreferenceshareanddebenture?Explain
itsmostimportantfeatures. [8M]
(b)FashionFabricsLtd.issued100000sharesofRs.10eachon1stApril,2006. [6M]
Theamountpayableontheseshareswasasunder:
Rs2pershareonapplication.
Rs3pershareonallotment.
Rs5pershareoncall.
Makenecessaryjournalentriesinthebooksofcompany.
UNIT?IV
7. (a)?AFund?owstatementisabettersubstituteforanincomestatement?Comment. [6M]
(b)Table3istheBalancesheetofAnandandSons. [8M]
DuringtheyearamachinecostingRs. 10000(accumulateddepreciationRs. 3000)soldfor
Rs.5000.TheprovisionfordepreciationagainstMachineryason1.1.2015wasRs.25000andon
31.12.2015Rs.40000.Netpro?tfortheyearamounttoRs.45000.Youarerequiredtoprepare
Cash?owstatement.
Page3of5


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HallTicketNo QuestionPaperCode:CMB002
J a w a h a r l a l N e hr u T e c h n ol o g i c a l U n i v e r s i t y H yd e r a b a d
.
MBAISemesterEndExaminations(Regular)-February,2017
Regulation: .?R16
FINANCIALACCOUNTINGANDANALYSIS
(MasterofBusinessAdministration)
Time: 3Hours MaxMarks: 70
AnswerONEQuestionfromeachUnit
AllQuestionsCarryEqualMarks
Allpartsofthequestionmustbeansweredinoneplaceonly
UNIT?I
1. (a) ?Accountingisthelanguageofbusiness?-Explainthestatementwithitspracticalimplications.
[7M]
(b) ?Accountingisaserviceactivity. Itsfunctionistoprovidequalitativeinformation,Primarily
?nancialinnature,abouteconomicentitiesthatisintendedtobeusefulinmakingeconomic
decisions.? [7M]
2. (a) ?AccountingConventionsareadoptedtomakethe?nancialstatementsclearandmeaningful?.
Elucidatethestatementwithimportantconventionsofaccounting. [8M]
(b) ?EverybusinesstransactionhastwoelementsORaspects?Justifyandexplainthestatement
withsuitableexamples. [6M]
UNIT?II
3. (a) GiveaccountingequationforthefollowingtransactionsofHiteshfortheyear2015. [8M]
i. StartedbusinesswithcashRs.18,000.
ii. PaidrentinadvanceRs.400.
iii. PurchasedgoodsforcashRs.5000andoncreditRs.2,000.
iv. SoldgoodsforcashRs.4,000(costingRs.2,400).
v. RentpaidRs.1,000andrentoutstandingRs.200.
vi. Boughtmotor-cycleforpersonaluseRs.500.
vii. PurchasedequipmentsforcashRs.500.
viii. PaidtocreditorsRs.600.
(b) TheTable1TrialBalancehasbeenpreparedwrongly.Youareaskedtopreparethetrialbalance
correctly. [6M]
Page1of5



Table1
Nameofaccounts Debitbalance Creditbalance
Cashinhand 2,000
Purchasesreturns 4,000
Wages 8,000
Establishmentexpenses 12,000
Capital 22,000
Carriageoutward 2,000
Discountreceived 1,200
Commissionearned 800
Machinery 20,000
Stock 10,000
Creditors 12,000
Sales 28,000
Purchases 28,000
Bankoverdraft 14,000
Grandtotal 58,000 58,000
4. (a)RamandShyamBros.acquiredamachineonJuly1,2014atacostof?70,000andspent?5,000
onitsinstallation. The?rmwriteso?depreciation@10%onstraightlinemethod. Thebooks
areclosedonDecember31everyyear. Showthemachineryanddepreciationaccountforthree
years. [6M]
(b)FromtheTable2TrialbalanceofRavienterprises,preparethe?nalaccountsfortheyearended
31stMarch,2015: [8M]
Table2
Particulars Debit(Rs) Credit(Rs)
Landandbuilding 50,000
Purchases 1,10,000
Stock 40,000
Returns 1,500 2,500
Wages 10,000
Salaries 9,000
O?ceexpenses 2,400
Carriageinwards 1,200
Carriageoutwards 2,000
Discounts 750 1,200
Baddebts 1,200
Sales 2,05,000
Capitalaccount 1,30,000
Insurance 1,500
Commission 1,500
Plantandmachinery 50,000
Furnitureand?xtures 10,000
Billsreceivable 20,000
Sundrydebtors 40,000
Sundrycreditors 25,000
Cashinhand 1,500
Cashatbank 4,500
O?ceequipment 12,000
Billspayable 2,350
Total 3,67,550 3,67,550
Page2of5



Adjustments:
1.ClosingstockamountedtoRs.60,000.
2.Outstandingliabilities;WagesRs.2,000andRentRs.3,000.
3.Depreciation;Landandbuildingsat5%,Plantandmachineryat10%,O?ceequipmentsat
10% andFurnitureandFixturesat10%.
4.Providefurtherbaddebtsreserveat5%onSundrydebtors.
5.InsurancepremiumprepaidRs.200.
6.Provideinterestoncapitalat5%.
UNIT?III
5. (a)A?rmmaintainsitsstoresledgeronthebasisofFIFOmethod.Followingisthesummaryofthe
receiptsandissuesofrawmaterialsduringthemonthofApril2006: [8M]
April01Openingbalance300units@Rs.22perunit?03IssuevideMaterialrequisitionNo.14,
150units.
?08PurchaseorderNo.07,200units@25perunit.
?12PurchaseorderNo.09,400units@23perunit
?17IssuevideMaterialrequisitionNo.16,500units.
?20IssuevideMaterialrequisitionNo.18,100units.
?23PurchaseorderNo.11,600units@20perunit.
?25IssuevideMaterialrequisitionNo.26,600units.
?28PurchaseorderNo.12,200units@26perunit.
?29IssuevideMaterialrequisitionNo.32,300units.
?30Shortage10units
(b)Criticallyexaminethedi?erenttypesofpreferenceShares. [6M]
6. (a)Whatisanordinaryshare?Howdoesitdi?erfromapreferenceshareanddebenture?Explain
itsmostimportantfeatures. [8M]
(b)FashionFabricsLtd.issued100000sharesofRs.10eachon1stApril,2006. [6M]
Theamountpayableontheseshareswasasunder:
Rs2pershareonapplication.
Rs3pershareonallotment.
Rs5pershareoncall.
Makenecessaryjournalentriesinthebooksofcompany.
UNIT?IV
7. (a)?AFund?owstatementisabettersubstituteforanincomestatement?Comment. [6M]
(b)Table3istheBalancesheetofAnandandSons. [8M]
DuringtheyearamachinecostingRs. 10000(accumulateddepreciationRs. 3000)soldfor
Rs.5000.TheprovisionfordepreciationagainstMachineryason1.1.2015wasRs.25000andon
31.12.2015Rs.40000.Netpro?tfortheyearamounttoRs.45000.Youarerequiredtoprepare
Cash?owstatement.
Page3of5



Table3
Liabilities 1.1.2015 31.12.2015 Assets 1.1.2015 31.12.2015
(Rs.) (Rs.) (Rs.) (Rs.)
Creditors 40000 44000 Cash 10000 7000
Mrs.A?sLoan 25000 Debtors 30000 50000 ? ? ?
LoanfromBank 40000 50000 Stock 35000 25000
Capital 125000 153000 Machinery 80000 55000
Land 40000 50000
Building 35000 60000
230000 247000 230000 247000
8. (a)Discussbrie?ythemajorclassi?cationofcash?owasperAS-3(revised) [6M]
(b)Table4summariesoftheBalancesheetofABCLtd.,fortwoyears. [8M]
Table4
31.12.2014 31.12.2015
ShareCapital 200000 260000
P&LAccount 39690 41220
Reserves 50000 50000
Sundrycreditors 39500 41135
Billspayable 33780 11525
Bankoverdraft 59510 ? ? ?
Provisionfortaxation 40000 50000
462480 453880
Goodwill 20000 ? ? ?
LandandBuilding 112450 116200
PlantandMachinery 148000 144250
Stocks 111040 97370
SundryDebtors 85175 72625
Billsreceivable 2315 735
Cash 2500 2700
461480 453880
Additionalinformation:
1.Duringtheyearending31.12.2015,aninterimdividendofRs.2600waspaid.
2.IncometaxpaidduringtheyearamountedtoRs.25000
3.Thenetpro?tfortheyearbeforetaxwasRs. 62530Youarerequiredtopreparestatementof
changesonworkingcapital,treatingprovisionfortaxationasacurrentliability.
UNIT?V
9. (a)?Financialanalysisisacontinuousprocessbeingapplicabletoeverybusinesstoevaluateitspast
performanceandcurrent?nancialposition?Comment. [7M]
(b)FromthebalancesheetgiveninTable5,calculate: [7M]
i.Workingcapital
ii.CurrentRatio
Page4of5


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HallTicketNo QuestionPaperCode:CMB002
J a w a h a r l a l N e hr u T e c h n ol o g i c a l U n i v e r s i t y H yd e r a b a d
.
MBAISemesterEndExaminations(Regular)-February,2017
Regulation: .?R16
FINANCIALACCOUNTINGANDANALYSIS
(MasterofBusinessAdministration)
Time: 3Hours MaxMarks: 70
AnswerONEQuestionfromeachUnit
AllQuestionsCarryEqualMarks
Allpartsofthequestionmustbeansweredinoneplaceonly
UNIT?I
1. (a) ?Accountingisthelanguageofbusiness?-Explainthestatementwithitspracticalimplications.
[7M]
(b) ?Accountingisaserviceactivity. Itsfunctionistoprovidequalitativeinformation,Primarily
?nancialinnature,abouteconomicentitiesthatisintendedtobeusefulinmakingeconomic
decisions.? [7M]
2. (a) ?AccountingConventionsareadoptedtomakethe?nancialstatementsclearandmeaningful?.
Elucidatethestatementwithimportantconventionsofaccounting. [8M]
(b) ?EverybusinesstransactionhastwoelementsORaspects?Justifyandexplainthestatement
withsuitableexamples. [6M]
UNIT?II
3. (a) GiveaccountingequationforthefollowingtransactionsofHiteshfortheyear2015. [8M]
i. StartedbusinesswithcashRs.18,000.
ii. PaidrentinadvanceRs.400.
iii. PurchasedgoodsforcashRs.5000andoncreditRs.2,000.
iv. SoldgoodsforcashRs.4,000(costingRs.2,400).
v. RentpaidRs.1,000andrentoutstandingRs.200.
vi. Boughtmotor-cycleforpersonaluseRs.500.
vii. PurchasedequipmentsforcashRs.500.
viii. PaidtocreditorsRs.600.
(b) TheTable1TrialBalancehasbeenpreparedwrongly.Youareaskedtopreparethetrialbalance
correctly. [6M]
Page1of5



Table1
Nameofaccounts Debitbalance Creditbalance
Cashinhand 2,000
Purchasesreturns 4,000
Wages 8,000
Establishmentexpenses 12,000
Capital 22,000
Carriageoutward 2,000
Discountreceived 1,200
Commissionearned 800
Machinery 20,000
Stock 10,000
Creditors 12,000
Sales 28,000
Purchases 28,000
Bankoverdraft 14,000
Grandtotal 58,000 58,000
4. (a)RamandShyamBros.acquiredamachineonJuly1,2014atacostof?70,000andspent?5,000
onitsinstallation. The?rmwriteso?depreciation@10%onstraightlinemethod. Thebooks
areclosedonDecember31everyyear. Showthemachineryanddepreciationaccountforthree
years. [6M]
(b)FromtheTable2TrialbalanceofRavienterprises,preparethe?nalaccountsfortheyearended
31stMarch,2015: [8M]
Table2
Particulars Debit(Rs) Credit(Rs)
Landandbuilding 50,000
Purchases 1,10,000
Stock 40,000
Returns 1,500 2,500
Wages 10,000
Salaries 9,000
O?ceexpenses 2,400
Carriageinwards 1,200
Carriageoutwards 2,000
Discounts 750 1,200
Baddebts 1,200
Sales 2,05,000
Capitalaccount 1,30,000
Insurance 1,500
Commission 1,500
Plantandmachinery 50,000
Furnitureand?xtures 10,000
Billsreceivable 20,000
Sundrydebtors 40,000
Sundrycreditors 25,000
Cashinhand 1,500
Cashatbank 4,500
O?ceequipment 12,000
Billspayable 2,350
Total 3,67,550 3,67,550
Page2of5



Adjustments:
1.ClosingstockamountedtoRs.60,000.
2.Outstandingliabilities;WagesRs.2,000andRentRs.3,000.
3.Depreciation;Landandbuildingsat5%,Plantandmachineryat10%,O?ceequipmentsat
10% andFurnitureandFixturesat10%.
4.Providefurtherbaddebtsreserveat5%onSundrydebtors.
5.InsurancepremiumprepaidRs.200.
6.Provideinterestoncapitalat5%.
UNIT?III
5. (a)A?rmmaintainsitsstoresledgeronthebasisofFIFOmethod.Followingisthesummaryofthe
receiptsandissuesofrawmaterialsduringthemonthofApril2006: [8M]
April01Openingbalance300units@Rs.22perunit?03IssuevideMaterialrequisitionNo.14,
150units.
?08PurchaseorderNo.07,200units@25perunit.
?12PurchaseorderNo.09,400units@23perunit
?17IssuevideMaterialrequisitionNo.16,500units.
?20IssuevideMaterialrequisitionNo.18,100units.
?23PurchaseorderNo.11,600units@20perunit.
?25IssuevideMaterialrequisitionNo.26,600units.
?28PurchaseorderNo.12,200units@26perunit.
?29IssuevideMaterialrequisitionNo.32,300units.
?30Shortage10units
(b)Criticallyexaminethedi?erenttypesofpreferenceShares. [6M]
6. (a)Whatisanordinaryshare?Howdoesitdi?erfromapreferenceshareanddebenture?Explain
itsmostimportantfeatures. [8M]
(b)FashionFabricsLtd.issued100000sharesofRs.10eachon1stApril,2006. [6M]
Theamountpayableontheseshareswasasunder:
Rs2pershareonapplication.
Rs3pershareonallotment.
Rs5pershareoncall.
Makenecessaryjournalentriesinthebooksofcompany.
UNIT?IV
7. (a)?AFund?owstatementisabettersubstituteforanincomestatement?Comment. [6M]
(b)Table3istheBalancesheetofAnandandSons. [8M]
DuringtheyearamachinecostingRs. 10000(accumulateddepreciationRs. 3000)soldfor
Rs.5000.TheprovisionfordepreciationagainstMachineryason1.1.2015wasRs.25000andon
31.12.2015Rs.40000.Netpro?tfortheyearamounttoRs.45000.Youarerequiredtoprepare
Cash?owstatement.
Page3of5



Table3
Liabilities 1.1.2015 31.12.2015 Assets 1.1.2015 31.12.2015
(Rs.) (Rs.) (Rs.) (Rs.)
Creditors 40000 44000 Cash 10000 7000
Mrs.A?sLoan 25000 Debtors 30000 50000 ? ? ?
LoanfromBank 40000 50000 Stock 35000 25000
Capital 125000 153000 Machinery 80000 55000
Land 40000 50000
Building 35000 60000
230000 247000 230000 247000
8. (a)Discussbrie?ythemajorclassi?cationofcash?owasperAS-3(revised) [6M]
(b)Table4summariesoftheBalancesheetofABCLtd.,fortwoyears. [8M]
Table4
31.12.2014 31.12.2015
ShareCapital 200000 260000
P&LAccount 39690 41220
Reserves 50000 50000
Sundrycreditors 39500 41135
Billspayable 33780 11525
Bankoverdraft 59510 ? ? ?
Provisionfortaxation 40000 50000
462480 453880
Goodwill 20000 ? ? ?
LandandBuilding 112450 116200
PlantandMachinery 148000 144250
Stocks 111040 97370
SundryDebtors 85175 72625
Billsreceivable 2315 735
Cash 2500 2700
461480 453880
Additionalinformation:
1.Duringtheyearending31.12.2015,aninterimdividendofRs.2600waspaid.
2.IncometaxpaidduringtheyearamountedtoRs.25000
3.Thenetpro?tfortheyearbeforetaxwasRs. 62530Youarerequiredtopreparestatementof
changesonworkingcapital,treatingprovisionfortaxationasacurrentliability.
UNIT?V
9. (a)?Financialanalysisisacontinuousprocessbeingapplicabletoeverybusinesstoevaluateitspast
performanceandcurrent?nancialposition?Comment. [7M]
(b)FromthebalancesheetgiveninTable5,calculate: [7M]
i.Workingcapital
ii.CurrentRatio
Page4of5



iii.AcidtestRatio
iv.DebtEquityRatio
v.AssetsProprietorshipRatio
Table5:BALANCESHEETOF?X?COMPANYLTD.,ason31stDecember2006
Liabilities Amount Assets Amount
Shareholders?fund: Fixedassets 1,80,000
Equitysharecapital:1,50,000 Currentassets:
12%Pref.sharecapital:30,000 CashinHand:2,000
Reservesandsurplus: 2,04,000 Cashatbank:4,000 24,000
15%Debentures 48,000 SundryDebtors:10,000
Bankoverdraft:12,000 Stores:12,000
Sundrycreditors:16,000 Stock-in-Trade:32,000 60,000
Proposeddividend:2,000 Preliminaryexpenses 48,000
Provisionfortaxation: 40,000 Discount 4,000 10,000
onissueofDebenture
2,92,000 2,92,000
10. (a)ExplainDupointanalysiswithchart [7M]
(b)Mentionany5AccountingStandards.Explainthesigni?canceofAccountingStandard. [7M]
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