Karnataka State Open University (KSOU) 2010 M.Com Commerce Accounting Theory and Practice - Question Paper
MCO (P) 94
M.Com. (Previous) Examination, June 2010 COMMERCE (SIM)
Course - IV : Accounting Theory and Practice
Time : 3 Hours Max. Marks : 90
PART - A
Answer any three questions. Each question carries 15 marks. (15x3=45)
1. Define accounting. Explain in detail the need and scope of accounting.
2. What is Human Resource Accounting ? Discuss the various methods of valuation of human resources in India.
3. What is financial statement analysis ? Explain the various tools of financial statement analysis.
4. From the following information, you are required to prepare a Balance Sheet.
Current Ratio 1.75
Quick Ratio 1.25
Stock Turnover Ratio (Based on Closing Stock) 9 times
Gross Profit Ratio 25%
Average Collection Period (in months) 1.5
Ratio of Reserves to Capital 0.2
Turnover of Fixed Assets 1.2
Debt-Equity 0.6
Fixed Assets to Net Worth 1.25
Sales for the year Rs. 24,00,000
5. From the following summarized Balance Sheets of Sri. Raghavendra Co. Ltd., as on 31-03-2008 and 31-03-2009, prepare
a) Statement showing changes in working capital
b) Funds flow statement.
|
Liabilities |
31-03-2008 |
31-03-2009 |
|
Rs. |
Rs. | |
|
Share Capital |
4,50,000 |
5,00,000 |
|
General Reserve |
3,00,000 |
3,10,000 |
|
Profit and Loss Account |
56,000 |
68,000 |
|
Creditors |
1,68,000 |
1,34,000 |
|
Mortgage Loan |
- |
2,20,000 |
|
Provision for taxation |
75,000 |
10,000 |
|
10,49,000 |
12,42,000 | |
|
Assets |
31-03-2008 |
31-03-2009 |
|
Rs. |
Rs. | |
|
Fixed Assets |
4,00,000 |
3,20,000 |
|
Investments |
50,000 |
60,000 |
|
Stock |
2,40,000 |
2,10,000 |
|
Debtors |
2,10,000 |
4,55,000 |
|
Bank |
1,49,000 |
1,97,000 |
|
10,49,000 |
12,42,000 |
Additional information :
a) Investments costing Rs. 8,000 were sold during the year for Rs. 8,500.
b) Provision for taxation made during the year amounted to Rs. 9,000.
c) During the year, a part of the fixed assets costing Rs. 10,000 were sold for Rs. 12,000.
d) Dividend paid during the year amounted to Rs. 40,000.
PART - B
Answer any three questions. Each question carries 10 marks. (10x3=30)
6. Give an account of procedures followed in government system of accounting in India.
7. Discuss the various accounting conventions which influence the preparation of financial statements.
8. Explain the concept of Responsibility Accounting.
9. The Balance Sheet of Aashish Ltd. revealed the following among other things.
|
31-3-2006 |
31-3-2007 | |
|
Inventories |
5,50,000 |
6,10,000 |
|
Book Debts |
4,50,000 |
5,50,000 |
|
Cash at Bank |
60,000 |
80,000 |
|
Advances for supply of materials |
1,00,000 |
1,26,500 |
|
Due to suppliers |
2,50,000 |
3,22,000 |
During 2006-07, material prices rose by 15% and those of finished goods by 10%. Calculate the monetary working capital adjustment to be made under current cost accounting system.
10. The working capital of ABC Ltd. has deteriorated in recent years and now stands as under.
Current Assets : Inventory 5,60,000; Debtors 3,50,000 and Cash 70,000 Current Liabilities : Creditors 4,90,000 and Bank Loan 2,10,000
a) Compute the current and quick ratios.
b) A further bank loan of Rs. 50,000 against debtors is under negotiation. Assuming the loan is revised, calculate the revised current and quick ratios.
PART - C
Answer any three sub-questions. Each sub-question carries five marks. (5x3=15)
11. a) Give a brief account of Indian GAAP.
b) What is meant by inflation accounting ?
c) How are cash flows classified in a cash flow statement ?
d) Write a note on bench marking.
e) What are the limitations of ratio analysis ?
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Attachment: |
| Earning: Approval pending. |
