Alagappa University 2007 Post Graduate Diploma BUSINESS ACCOUNTING - Question Paper

DISTANCE EDUCATION
P.G.D.E.M. EXAMINATION, DECEMBER 2007.


BUSINESS ACCOUNTING


Time : 3 hours Maximum : 100 marks
PART A — (5 ? eight = 40 marks)
ans any 5 ques..
All ques. carry equal marks.


1. Define Business Accounting.
2. What are the mistakes that the Trial Balance indicates and what mistakes does it not show?
3. Briefly discuss profitability ratios.
4. Distinguish ranging from cash flow and funds flow statements.
5. What are the functions of Cost Accounting?
6. What do you understand by ABC analysis? elaborate its advantages?
7. What are the applications of computers in business?
8. What are the advantages of Budgetary Control?


PART B — (4 ? 15 = 60 marks)
ans any 4 ques..
All ques. carry equal marks.


9. Pandian’s books show the subsequent balances. Prepare his Trading and Profit and Loss Account for the year ended
31st December 2002 and Balance sheet as on that date.
Rs. Rs.
Stock 15,000
Purchases 13,000
Sales 30,000
Carriage inwards 200
Salaries 5,000
Printing and stationery 800
Drawings 1,700
Sundry creditors 2,000
Sundry debtors 18,000
Furniture 1,000
Capital 25,000
Postage and telephone 750
Interest paid 550
Machinery 3,500
Cash 500
Loan 3,000
60,000 60,000
The stock on 31st December 2002 was Rs. 12,000.
10. The subsequent is the comparative Balance sheet of A Ltd. Prepare a funds flow statement.
Balance Sheet
Liabilities 31st Dec. Assets 31st Dec.
2003
Rs. 2004
Rs. 2003
Rs. 2004
Rs.
Share Capital 8,000 8,500 Land 5,000 5,000
Profit & Loss Plant 2,400 3,400
appropriation a/c 1,450 2,450 Debtors 1,650 1,950
Creditors 900 500 Stock 900 700
Mortgage loan 500 Cash at bank 400 900
10,350 11,950 10,350 11,950
11. For production of 10,000 electrical automatic irons, the subsequent are the budgeted expenses :
Per Unit
Rs.
Direct materials 60
Direct labour 30
Variable overheads 25
Fixed overheads (Rs. 1,50,000) 15
Variable expenses (direct) 5
Selling expenses (10% fixed) 15
Administration expenses (Rs. 50,000
rigid for all levels of production) 5
Distribution expenses (20% fixed) 5
Total cost of sale per unit 160
Prepare a budget for production of 6,000; 7,000 and
8000 irons showing distinctly marginal cost and total costs.
12. From the particulars provided beneath prepare a statement of cost giving the subsequent info :
(a) Cost of materials used
(b) Works cost
(c) Cost of production
(d) Percentage of works overhead to productive wages
(e) Percentage of general overhead to works cost.
Rs.
Stock of materials on first January 40,000
Purchase of raw materials in January 11,00,000
Stock of finished goods on first January 50,000
Productive wage 5,00,000
Finished goods sold 24,00,000
Works overhead charges 1,50,000
Office and general expenses 1,00,000
Stock of materials on 31st January 1,40,000
Stock of finished goods on 31st January 60,000
13. Explain the various techniques of inventory management.
14. What are the factors to be considered for deciding the size of working capital?
15. Describe any 5 methods of costing.

Earning:   Approval pending.