Download JNTUH MBA 1st Semester 2018 Jan Financial Accounting and Analysis Question Paper

Download JNTUH (JNTU Hyderabad) MBA First Year (1st Semester) 2018 Jan 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)-January,2018
Regulation: .?R16
FinancialAccountingandAnalysis
(MASTEROFBUSINESSADMINISTRATION)
Time: 3Hours MaxMarks: 70
AnswerONEQuestionfromeachUnit
AllQuestionsCarryEqualMarks
Allpartsofthequestionmustbeansweredinoneplaceonly
UNIT?I
1. (a) Demonstratethemeaningandsigni?canceofthefollowingaccountingconceptsandconventions:
i. Matchingconcept
ii. Goingconcernconcept
iii. Conventionofconsistency
iv. Conventionofmateriality [7M]
(b) Describethedi?erenttypesoftransactions. Explaintheclassi?cationofaccountsandrulesof
doubleentrysystemforeachcategoryofaccounts. [7M]
2. (a) Discussthemeaningofbookkeepingandaccounting.Explainthemainfunctionsof
accounting. [7M]
(b) Classifythefollowingintopersonal,realandnominalaccounts:
i. DrawingsA/c
ii. DiscountA/c
iii. SalaryA/c
iv. ReservefordoubtfuldebtA/c
v. PrepaidrentA/c
vi. SalesA/c
vii. BaddebtA/c
viii. CreditorsA/c
ix. CapitalA/c
x. PurchasesA/c
xi. PatentrightsA/c
xii. BankoverdraftA/c
xiii. OutstandingcommissionA/c
xiv. MachineryA/c [7M]
Page1of5


FirstRanker.com - FirstRanker's Choice

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)-January,2018
Regulation: .?R16
FinancialAccountingandAnalysis
(MASTEROFBUSINESSADMINISTRATION)
Time: 3Hours MaxMarks: 70
AnswerONEQuestionfromeachUnit
AllQuestionsCarryEqualMarks
Allpartsofthequestionmustbeansweredinoneplaceonly
UNIT?I
1. (a) Demonstratethemeaningandsigni?canceofthefollowingaccountingconceptsandconventions:
i. Matchingconcept
ii. Goingconcernconcept
iii. Conventionofconsistency
iv. Conventionofmateriality [7M]
(b) Describethedi?erenttypesoftransactions. Explaintheclassi?cationofaccountsandrulesof
doubleentrysystemforeachcategoryofaccounts. [7M]
2. (a) Discussthemeaningofbookkeepingandaccounting.Explainthemainfunctionsof
accounting. [7M]
(b) Classifythefollowingintopersonal,realandnominalaccounts:
i. DrawingsA/c
ii. DiscountA/c
iii. SalaryA/c
iv. ReservefordoubtfuldebtA/c
v. PrepaidrentA/c
vi. SalesA/c
vii. BaddebtA/c
viii. CreditorsA/c
ix. CapitalA/c
x. PurchasesA/c
xi. PatentrightsA/c
xii. BankoverdraftA/c
xiii. OutstandingcommissionA/c
xiv. MachineryA/c [7M]
Page1of5



UNIT?II
3. (a)Inthetrialbalancegivenbelow,someaccountshavebeenincludedinthewrongcolumn(debit
orcredit).Asaresult,thebalanceisnotmatching.Preparethecorrecttrialbalance.Also?nd
outthemissing?gureofretainedearnings. [7M]
Table1
Accounts Debit(Rs) Credit(Rs)
Cash 7,500
Salariespayable 900
Taxespayable 3,000
Accountsreceivable 16,500
Inventory 21,000
Capitalstock 60,000
Longtermdebt 34,000
Land 6,000
Buildings(net) 60,000
Otherassets 2,000
Accountspayable 7,000
Dividendspayable 2,500
Retainedearnings ?
Total 90,000 130,400
(b)ThetrialbalanceofMr.Xason31December,2015wasasfollows: [7M]
Table2
DebitBalance Rs. CreditBalance Rs.
Purchases 162,505 Sales 252,400
Sundrydebtors 50,200 Provisionfordoubtfuldebts 5,200
Openingstock 26,725 Sundrycreditors 30,526
Wages 23,137 Billspayable 3,950
Salaries 5,575 Outstandingwages 2,000
Furniture 7,250 Tradeexpensesaccruedbutnotpaid 700
Postage 4,226 Capitalaccount 10,000
Powerandfuel 1,350
Tradeexpenses 5,831
Baddebts 525
Loanat10%perannumtoRam1stSept.2015 3,000
Cashonhandandatbank 10,000
Drawingsaccount 4,452
304,776 304,776
Preparethetradingandpro?tandlossaccountfortheyearended31December,2015andthebalance
sheetasatthatdatetakingintoaccountthefollowinginformation:
?Depreciationonfurnitureistobechargedat10%perannum.
?Provisionfordoubtfuldebtsistobemaintainedat5%onsundrydebtors.
?Stockasat31December,2015wasRs.12,550
4. (a)A?rmpurchasesatruckforasumofRs.100,000on1January,2015.Itcharges20%depreciation
perannumonDecember,31accordingtothediminishingbalancemethod. Thetruckwassold
on1July,2016forasumofRs.80,000.Preparethetruckaccountfor2015and2016. [7M]
(b)PreparesalesbookandsalesreturnsbookinthebooksofM/sAishwaryaenterprisesfromthe
followingtransactions: [7M]
Page2of5


FirstRanker.com - FirstRanker's Choice

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)-January,2018
Regulation: .?R16
FinancialAccountingandAnalysis
(MASTEROFBUSINESSADMINISTRATION)
Time: 3Hours MaxMarks: 70
AnswerONEQuestionfromeachUnit
AllQuestionsCarryEqualMarks
Allpartsofthequestionmustbeansweredinoneplaceonly
UNIT?I
1. (a) Demonstratethemeaningandsigni?canceofthefollowingaccountingconceptsandconventions:
i. Matchingconcept
ii. Goingconcernconcept
iii. Conventionofconsistency
iv. Conventionofmateriality [7M]
(b) Describethedi?erenttypesoftransactions. Explaintheclassi?cationofaccountsandrulesof
doubleentrysystemforeachcategoryofaccounts. [7M]
2. (a) Discussthemeaningofbookkeepingandaccounting.Explainthemainfunctionsof
accounting. [7M]
(b) Classifythefollowingintopersonal,realandnominalaccounts:
i. DrawingsA/c
ii. DiscountA/c
iii. SalaryA/c
iv. ReservefordoubtfuldebtA/c
v. PrepaidrentA/c
vi. SalesA/c
vii. BaddebtA/c
viii. CreditorsA/c
ix. CapitalA/c
x. PurchasesA/c
xi. PatentrightsA/c
xii. BankoverdraftA/c
xiii. OutstandingcommissionA/c
xiv. MachineryA/c [7M]
Page1of5



UNIT?II
3. (a)Inthetrialbalancegivenbelow,someaccountshavebeenincludedinthewrongcolumn(debit
orcredit).Asaresult,thebalanceisnotmatching.Preparethecorrecttrialbalance.Also?nd
outthemissing?gureofretainedearnings. [7M]
Table1
Accounts Debit(Rs) Credit(Rs)
Cash 7,500
Salariespayable 900
Taxespayable 3,000
Accountsreceivable 16,500
Inventory 21,000
Capitalstock 60,000
Longtermdebt 34,000
Land 6,000
Buildings(net) 60,000
Otherassets 2,000
Accountspayable 7,000
Dividendspayable 2,500
Retainedearnings ?
Total 90,000 130,400
(b)ThetrialbalanceofMr.Xason31December,2015wasasfollows: [7M]
Table2
DebitBalance Rs. CreditBalance Rs.
Purchases 162,505 Sales 252,400
Sundrydebtors 50,200 Provisionfordoubtfuldebts 5,200
Openingstock 26,725 Sundrycreditors 30,526
Wages 23,137 Billspayable 3,950
Salaries 5,575 Outstandingwages 2,000
Furniture 7,250 Tradeexpensesaccruedbutnotpaid 700
Postage 4,226 Capitalaccount 10,000
Powerandfuel 1,350
Tradeexpenses 5,831
Baddebts 525
Loanat10%perannumtoRam1stSept.2015 3,000
Cashonhandandatbank 10,000
Drawingsaccount 4,452
304,776 304,776
Preparethetradingandpro?tandlossaccountfortheyearended31December,2015andthebalance
sheetasatthatdatetakingintoaccountthefollowinginformation:
?Depreciationonfurnitureistobechargedat10%perannum.
?Provisionfordoubtfuldebtsistobemaintainedat5%onsundrydebtors.
?Stockasat31December,2015wasRs.12,550
4. (a)A?rmpurchasesatruckforasumofRs.100,000on1January,2015.Itcharges20%depreciation
perannumonDecember,31accordingtothediminishingbalancemethod. Thetruckwassold
on1July,2016forasumofRs.80,000.Preparethetruckaccountfor2015and2016. [7M]
(b)PreparesalesbookandsalesreturnsbookinthebooksofM/sAishwaryaenterprisesfromthe
followingtransactions: [7M]
Page2of5



Table3
Date Transaction
13/5/16 GoodsofMRPRs.55,000soldtoNaveenenterprises@20%tradediscount.
16/5/16 GoodsofMRPRs.49,500soldtoRamenterprises@10%tradediscount.
21/5/16 GoodsofvalueRs.5,000returnedbyNitishenterprises
22/5/16 GoodsofvalueRs.15,400soldtoNitishenterprisesoncash.
24/5/16 GoodsofvalueRs.16,500soldtoSimsonLtd.
26/5/16 GoodsofvalueRs.1,500returnedbyRamenterprises
1/6/16 GoodsofvalueRs.4,500returnedbySimsonLtd.
UNIT?III
5. (a)Thefollowingtransactionsoccurinthepurchaseandissueofamaterial: [7M]
Table4
2016April
1 Openingstock 100units@Rs.500
5 Purchases 300units@Rs.6perunit
6 Issued 250units
8 Purchases 500units@Rs.7perunit
10 Issued 400units
12 Purchases 600units@Rs.8perunit
30 Issued 500units
PreparestoresledgerunderLIFOmethodfromtheabovetransactions
(b)Discussthemeaningandtypesofpreferenceshares. [7M]
6. (a)J.K.Ltdinvitedapplicationtoissue30,000equitysharesoffacevalueRs.10eachat10%premium.
TheamounttobepaidastoRs.6atthetimeofapplication,Rs.4(includingpremium)on
allotment,Re.1pershareon?rstand?nalcall.Thecompanyreceivedtheapplicationfor35,000
sharesapplicantsfor5,000shareswererefusedallotmentandremainingapplicantsweregiven
allotment. Oneshareholderholding300sharespaidonlytheapplicationmoney. Restofthe
shareholderspaidthedueamountintime.Showthenecessaryjournalentries. [7M]
(b)Discussthemeaningandmodesofredemptionofdebentures. [7M]
UNIT?IV
7. (a)FromthefollowingbalancesheetsofJoshwacompanyLtdason31December,2014and2015,
preparefunds?owstatementfortheyearended31December,2015: [7M]
Table5
Liabilities 2014(Rs.) 2015(Rs.) Assets 2014(Rs) 2015(Rs.)
Sharecapital 1,00,000 100,000 Goodwill 12,000 12,000
Generalreserve 14,000 18,000 Building 40,000 36,000
Pro?t/loss 16,000 13,000 Plant 37,000 36,000
Creditors 8,000 5,400 Investments 10,000 11,000
Billspayable 1,200 800 Stock 30,000 23,400
Provisionfortaxation 16,000 18,000 Billsreceivable 2,000 3,200
Provisionfordoubtfuldebts 400 600 Debtors 18,000 19,000
Cashatbank 6,600 15,200
155,600 155,800 155,600 155,800
Page3of5


FirstRanker.com - FirstRanker's Choice

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)-January,2018
Regulation: .?R16
FinancialAccountingandAnalysis
(MASTEROFBUSINESSADMINISTRATION)
Time: 3Hours MaxMarks: 70
AnswerONEQuestionfromeachUnit
AllQuestionsCarryEqualMarks
Allpartsofthequestionmustbeansweredinoneplaceonly
UNIT?I
1. (a) Demonstratethemeaningandsigni?canceofthefollowingaccountingconceptsandconventions:
i. Matchingconcept
ii. Goingconcernconcept
iii. Conventionofconsistency
iv. Conventionofmateriality [7M]
(b) Describethedi?erenttypesoftransactions. Explaintheclassi?cationofaccountsandrulesof
doubleentrysystemforeachcategoryofaccounts. [7M]
2. (a) Discussthemeaningofbookkeepingandaccounting.Explainthemainfunctionsof
accounting. [7M]
(b) Classifythefollowingintopersonal,realandnominalaccounts:
i. DrawingsA/c
ii. DiscountA/c
iii. SalaryA/c
iv. ReservefordoubtfuldebtA/c
v. PrepaidrentA/c
vi. SalesA/c
vii. BaddebtA/c
viii. CreditorsA/c
ix. CapitalA/c
x. PurchasesA/c
xi. PatentrightsA/c
xii. BankoverdraftA/c
xiii. OutstandingcommissionA/c
xiv. MachineryA/c [7M]
Page1of5



UNIT?II
3. (a)Inthetrialbalancegivenbelow,someaccountshavebeenincludedinthewrongcolumn(debit
orcredit).Asaresult,thebalanceisnotmatching.Preparethecorrecttrialbalance.Also?nd
outthemissing?gureofretainedearnings. [7M]
Table1
Accounts Debit(Rs) Credit(Rs)
Cash 7,500
Salariespayable 900
Taxespayable 3,000
Accountsreceivable 16,500
Inventory 21,000
Capitalstock 60,000
Longtermdebt 34,000
Land 6,000
Buildings(net) 60,000
Otherassets 2,000
Accountspayable 7,000
Dividendspayable 2,500
Retainedearnings ?
Total 90,000 130,400
(b)ThetrialbalanceofMr.Xason31December,2015wasasfollows: [7M]
Table2
DebitBalance Rs. CreditBalance Rs.
Purchases 162,505 Sales 252,400
Sundrydebtors 50,200 Provisionfordoubtfuldebts 5,200
Openingstock 26,725 Sundrycreditors 30,526
Wages 23,137 Billspayable 3,950
Salaries 5,575 Outstandingwages 2,000
Furniture 7,250 Tradeexpensesaccruedbutnotpaid 700
Postage 4,226 Capitalaccount 10,000
Powerandfuel 1,350
Tradeexpenses 5,831
Baddebts 525
Loanat10%perannumtoRam1stSept.2015 3,000
Cashonhandandatbank 10,000
Drawingsaccount 4,452
304,776 304,776
Preparethetradingandpro?tandlossaccountfortheyearended31December,2015andthebalance
sheetasatthatdatetakingintoaccountthefollowinginformation:
?Depreciationonfurnitureistobechargedat10%perannum.
?Provisionfordoubtfuldebtsistobemaintainedat5%onsundrydebtors.
?Stockasat31December,2015wasRs.12,550
4. (a)A?rmpurchasesatruckforasumofRs.100,000on1January,2015.Itcharges20%depreciation
perannumonDecember,31accordingtothediminishingbalancemethod. Thetruckwassold
on1July,2016forasumofRs.80,000.Preparethetruckaccountfor2015and2016. [7M]
(b)PreparesalesbookandsalesreturnsbookinthebooksofM/sAishwaryaenterprisesfromthe
followingtransactions: [7M]
Page2of5



Table3
Date Transaction
13/5/16 GoodsofMRPRs.55,000soldtoNaveenenterprises@20%tradediscount.
16/5/16 GoodsofMRPRs.49,500soldtoRamenterprises@10%tradediscount.
21/5/16 GoodsofvalueRs.5,000returnedbyNitishenterprises
22/5/16 GoodsofvalueRs.15,400soldtoNitishenterprisesoncash.
24/5/16 GoodsofvalueRs.16,500soldtoSimsonLtd.
26/5/16 GoodsofvalueRs.1,500returnedbyRamenterprises
1/6/16 GoodsofvalueRs.4,500returnedbySimsonLtd.
UNIT?III
5. (a)Thefollowingtransactionsoccurinthepurchaseandissueofamaterial: [7M]
Table4
2016April
1 Openingstock 100units@Rs.500
5 Purchases 300units@Rs.6perunit
6 Issued 250units
8 Purchases 500units@Rs.7perunit
10 Issued 400units
12 Purchases 600units@Rs.8perunit
30 Issued 500units
PreparestoresledgerunderLIFOmethodfromtheabovetransactions
(b)Discussthemeaningandtypesofpreferenceshares. [7M]
6. (a)J.K.Ltdinvitedapplicationtoissue30,000equitysharesoffacevalueRs.10eachat10%premium.
TheamounttobepaidastoRs.6atthetimeofapplication,Rs.4(includingpremium)on
allotment,Re.1pershareon?rstand?nalcall.Thecompanyreceivedtheapplicationfor35,000
sharesapplicantsfor5,000shareswererefusedallotmentandremainingapplicantsweregiven
allotment. Oneshareholderholding300sharespaidonlytheapplicationmoney. Restofthe
shareholderspaidthedueamountintime.Showthenecessaryjournalentries. [7M]
(b)Discussthemeaningandmodesofredemptionofdebentures. [7M]
UNIT?IV
7. (a)FromthefollowingbalancesheetsofJoshwacompanyLtdason31December,2014and2015,
preparefunds?owstatementfortheyearended31December,2015: [7M]
Table5
Liabilities 2014(Rs.) 2015(Rs.) Assets 2014(Rs) 2015(Rs.)
Sharecapital 1,00,000 100,000 Goodwill 12,000 12,000
Generalreserve 14,000 18,000 Building 40,000 36,000
Pro?t/loss 16,000 13,000 Plant 37,000 36,000
Creditors 8,000 5,400 Investments 10,000 11,000
Billspayable 1,200 800 Stock 30,000 23,400
Provisionfortaxation 16,000 18,000 Billsreceivable 2,000 3,200
Provisionfordoubtfuldebts 400 600 Debtors 18,000 19,000
Cashatbank 6,600 15,200
155,600 155,800 155,600 155,800
Page3of5



Additionalinformation:
i.DepreciationchargedtoplantRs.4,000.
ii.ProvisionfortaxationofRs.19,000wasmadeduringtheyear2015.
iii.InterimdividendofRs.8,000waspaidduringtheyear2015.
(b)Describethemeaningoffundsfromoperationsanditscomputationprocedure. [7M]
8. (a)ThebalancesheetsofXYZLimitedason31March,2015and2016wereasfollows: [7M]
Table6
2015 2016
Assets:
Landandbuildings 80,000 120,000
Plantandmachinery 500,000 800,000
Stock 100,000 75,000
Sundrydebtors 140,000 150,000
Prepaidexpenses 14,000 12,000
Cashatbank 16,000 18,000
8,50,000 11,75,000
Liabilitiesandcapital:
Sharecapital 500,000 700,000
Pro?t&lossaccount 100,000 160,000
Generalreserve 50,000 70,000
Sundrycreditors 163,000 200,000
Billspayable 30,000 40,000
Outstandingexpenses 7,000 5,000
850,000 1175,000
Additionalinformation:
?Rs.50,000depreciationhasbeenchargedonplantandmachineryduringtheyear,2016
?ApieceofmachinerywassoldforRs.8,000during2016. IthadcostRs.12,000,depreciation
ofRs.7,000hasbeenprovidedonit.
Preparecash?owstatementofXYZLimited
(b)Discusstheusefulnessofcash?owstatement.Explainthetypesofcashtransactionsrecordedin
cash?owstatement. [7M]
UNIT?V
9. (a)TheSummarisedbalancesheetofPAItradersLtdfotheyearended31March,2016isgiven
below: [7M]
Table7
Capitalandliabilities Rs.inLakhs Assets Rs.inLakhs
Equitysharecapital 140 Fixedasset(atcost)210
Less:Depreciation25 185
Reservesandsurplus 45 CurrentAssets:
Pro?tandlossaccount 20 Stock 25
Provisionfortaxation 10 Debtors 30
Sundrycreditors 40 cash 15
255 255
Page4of5


FirstRanker.com - FirstRanker's Choice

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)-January,2018
Regulation: .?R16
FinancialAccountingandAnalysis
(MASTEROFBUSINESSADMINISTRATION)
Time: 3Hours MaxMarks: 70
AnswerONEQuestionfromeachUnit
AllQuestionsCarryEqualMarks
Allpartsofthequestionmustbeansweredinoneplaceonly
UNIT?I
1. (a) Demonstratethemeaningandsigni?canceofthefollowingaccountingconceptsandconventions:
i. Matchingconcept
ii. Goingconcernconcept
iii. Conventionofconsistency
iv. Conventionofmateriality [7M]
(b) Describethedi?erenttypesoftransactions. Explaintheclassi?cationofaccountsandrulesof
doubleentrysystemforeachcategoryofaccounts. [7M]
2. (a) Discussthemeaningofbookkeepingandaccounting.Explainthemainfunctionsof
accounting. [7M]
(b) Classifythefollowingintopersonal,realandnominalaccounts:
i. DrawingsA/c
ii. DiscountA/c
iii. SalaryA/c
iv. ReservefordoubtfuldebtA/c
v. PrepaidrentA/c
vi. SalesA/c
vii. BaddebtA/c
viii. CreditorsA/c
ix. CapitalA/c
x. PurchasesA/c
xi. PatentrightsA/c
xii. BankoverdraftA/c
xiii. OutstandingcommissionA/c
xiv. MachineryA/c [7M]
Page1of5



UNIT?II
3. (a)Inthetrialbalancegivenbelow,someaccountshavebeenincludedinthewrongcolumn(debit
orcredit).Asaresult,thebalanceisnotmatching.Preparethecorrecttrialbalance.Also?nd
outthemissing?gureofretainedearnings. [7M]
Table1
Accounts Debit(Rs) Credit(Rs)
Cash 7,500
Salariespayable 900
Taxespayable 3,000
Accountsreceivable 16,500
Inventory 21,000
Capitalstock 60,000
Longtermdebt 34,000
Land 6,000
Buildings(net) 60,000
Otherassets 2,000
Accountspayable 7,000
Dividendspayable 2,500
Retainedearnings ?
Total 90,000 130,400
(b)ThetrialbalanceofMr.Xason31December,2015wasasfollows: [7M]
Table2
DebitBalance Rs. CreditBalance Rs.
Purchases 162,505 Sales 252,400
Sundrydebtors 50,200 Provisionfordoubtfuldebts 5,200
Openingstock 26,725 Sundrycreditors 30,526
Wages 23,137 Billspayable 3,950
Salaries 5,575 Outstandingwages 2,000
Furniture 7,250 Tradeexpensesaccruedbutnotpaid 700
Postage 4,226 Capitalaccount 10,000
Powerandfuel 1,350
Tradeexpenses 5,831
Baddebts 525
Loanat10%perannumtoRam1stSept.2015 3,000
Cashonhandandatbank 10,000
Drawingsaccount 4,452
304,776 304,776
Preparethetradingandpro?tandlossaccountfortheyearended31December,2015andthebalance
sheetasatthatdatetakingintoaccountthefollowinginformation:
?Depreciationonfurnitureistobechargedat10%perannum.
?Provisionfordoubtfuldebtsistobemaintainedat5%onsundrydebtors.
?Stockasat31December,2015wasRs.12,550
4. (a)A?rmpurchasesatruckforasumofRs.100,000on1January,2015.Itcharges20%depreciation
perannumonDecember,31accordingtothediminishingbalancemethod. Thetruckwassold
on1July,2016forasumofRs.80,000.Preparethetruckaccountfor2015and2016. [7M]
(b)PreparesalesbookandsalesreturnsbookinthebooksofM/sAishwaryaenterprisesfromthe
followingtransactions: [7M]
Page2of5



Table3
Date Transaction
13/5/16 GoodsofMRPRs.55,000soldtoNaveenenterprises@20%tradediscount.
16/5/16 GoodsofMRPRs.49,500soldtoRamenterprises@10%tradediscount.
21/5/16 GoodsofvalueRs.5,000returnedbyNitishenterprises
22/5/16 GoodsofvalueRs.15,400soldtoNitishenterprisesoncash.
24/5/16 GoodsofvalueRs.16,500soldtoSimsonLtd.
26/5/16 GoodsofvalueRs.1,500returnedbyRamenterprises
1/6/16 GoodsofvalueRs.4,500returnedbySimsonLtd.
UNIT?III
5. (a)Thefollowingtransactionsoccurinthepurchaseandissueofamaterial: [7M]
Table4
2016April
1 Openingstock 100units@Rs.500
5 Purchases 300units@Rs.6perunit
6 Issued 250units
8 Purchases 500units@Rs.7perunit
10 Issued 400units
12 Purchases 600units@Rs.8perunit
30 Issued 500units
PreparestoresledgerunderLIFOmethodfromtheabovetransactions
(b)Discussthemeaningandtypesofpreferenceshares. [7M]
6. (a)J.K.Ltdinvitedapplicationtoissue30,000equitysharesoffacevalueRs.10eachat10%premium.
TheamounttobepaidastoRs.6atthetimeofapplication,Rs.4(includingpremium)on
allotment,Re.1pershareon?rstand?nalcall.Thecompanyreceivedtheapplicationfor35,000
sharesapplicantsfor5,000shareswererefusedallotmentandremainingapplicantsweregiven
allotment. Oneshareholderholding300sharespaidonlytheapplicationmoney. Restofthe
shareholderspaidthedueamountintime.Showthenecessaryjournalentries. [7M]
(b)Discussthemeaningandmodesofredemptionofdebentures. [7M]
UNIT?IV
7. (a)FromthefollowingbalancesheetsofJoshwacompanyLtdason31December,2014and2015,
preparefunds?owstatementfortheyearended31December,2015: [7M]
Table5
Liabilities 2014(Rs.) 2015(Rs.) Assets 2014(Rs) 2015(Rs.)
Sharecapital 1,00,000 100,000 Goodwill 12,000 12,000
Generalreserve 14,000 18,000 Building 40,000 36,000
Pro?t/loss 16,000 13,000 Plant 37,000 36,000
Creditors 8,000 5,400 Investments 10,000 11,000
Billspayable 1,200 800 Stock 30,000 23,400
Provisionfortaxation 16,000 18,000 Billsreceivable 2,000 3,200
Provisionfordoubtfuldebts 400 600 Debtors 18,000 19,000
Cashatbank 6,600 15,200
155,600 155,800 155,600 155,800
Page3of5



Additionalinformation:
i.DepreciationchargedtoplantRs.4,000.
ii.ProvisionfortaxationofRs.19,000wasmadeduringtheyear2015.
iii.InterimdividendofRs.8,000waspaidduringtheyear2015.
(b)Describethemeaningoffundsfromoperationsanditscomputationprocedure. [7M]
8. (a)ThebalancesheetsofXYZLimitedason31March,2015and2016wereasfollows: [7M]
Table6
2015 2016
Assets:
Landandbuildings 80,000 120,000
Plantandmachinery 500,000 800,000
Stock 100,000 75,000
Sundrydebtors 140,000 150,000
Prepaidexpenses 14,000 12,000
Cashatbank 16,000 18,000
8,50,000 11,75,000
Liabilitiesandcapital:
Sharecapital 500,000 700,000
Pro?t&lossaccount 100,000 160,000
Generalreserve 50,000 70,000
Sundrycreditors 163,000 200,000
Billspayable 30,000 40,000
Outstandingexpenses 7,000 5,000
850,000 1175,000
Additionalinformation:
?Rs.50,000depreciationhasbeenchargedonplantandmachineryduringtheyear,2016
?ApieceofmachinerywassoldforRs.8,000during2016. IthadcostRs.12,000,depreciation
ofRs.7,000hasbeenprovidedonit.
Preparecash?owstatementofXYZLimited
(b)Discusstheusefulnessofcash?owstatement.Explainthetypesofcashtransactionsrecordedin
cash?owstatement. [7M]
UNIT?V
9. (a)TheSummarisedbalancesheetofPAItradersLtdfotheyearended31March,2016isgiven
below: [7M]
Table7
Capitalandliabilities Rs.inLakhs Assets Rs.inLakhs
Equitysharecapital 140 Fixedasset(atcost)210
Less:Depreciation25 185
Reservesandsurplus 45 CurrentAssets:
Pro?tandlossaccount 20 Stock 25
Provisionfortaxation 10 Debtors 30
Sundrycreditors 40 cash 15
255 255
Page4of5



Thefollowingfurtherparticularsarealsogivenfortheyear:
Table8
Rs.inLakhs
Sales 120
Earningsbeforeinterestandtax(EBIT) 30
Netpro?taftertax(PAT) 20
Calculatethefollowingforthecompany:
(i)Currentratio.
(ii)Liquidratio
(iii)Pro?tabilityratio.
(iv)Debtor?sturnover
(v)Stockturnover
(vi)Returnonequity
(b)Discussthemeaningandtypesof?nancialstatementanalysis
[7M]
10. (a)Thefollowingisthepro?tandlossaccountofRupa&Cofortheyearendedon
March31,2016: [7M]
Table9
Rs. Rs.
Netsales 3,000,000
Less:costofgoodssold
Openingstock 500,000
Add:purchases 2,000,000
Less:closingstock 700,000 1,800,000
GrossPro?t 1,200,000
Less:operatingexpenses 480,000
Operatingpro?t 720,000
Less:Interestcharge 180,000
Pro?tbeforetax(PBT) 540,000
AdditionalInformation:
Table10
Currentassets Rs.975,000
Currentliabilities Rs.600,000
Fixedassets Rs.525,000
Fromtheaboveparticulars,calculatethefollowingratios:
(i)Costofgoodssoldratio
(ii)Stockturnoverratio
(iii)Operatingratio
(iv)Assetsturnoverratio
(v)Operatingpro?tratio
(vi)Returnoncapitalemployed.
(b)Demonstratethemeaning,signi?canceandcomputationofturnoverratios. [7M]
Page5of5


FirstRanker.com - FirstRanker's Choice