Annamalai University 2008-2nd Year B.B.A " 220 FINANCIAL ACCOUNTING " ( - V ) ( PART - III ) ( ) 6 7 8 7 - Question Paper
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19. Explain briefly the steps to be following in preparing funds flow statement.
20. Lakshmi & Co. is desirous to purchase a business and has consulted you and one point on which you are asked to advise them is the average amount of working capital which will be required in the first years working.
You are given the following estimates and instructed to add 10 % to your completed figure to allow for contingencies.
Figures for the year Rs.
(i) Amount blocked up for stocks :
Stock of finished product - 5,000 Stock of stores, material, etc. - 8,000
(ii) Average credit given :
Inland sales 6 weeks credit - 3,12,000
Export sales W2 weeks
credit - 78,000
Name of the Candidate :
6 7 8 7 B.B.A. (Applied Management) DEGREE EXAMINATION, 2008
(SECOND YEAR)
(PART - III)
(PAPER - V)
December ] [ Time : 3 Hours
Maximum : 100 Marks
SECTION - A (10x2 = 20)
Answer ALL questions.
All questions carry equal marks.
1. What is ledger ?
2. What are real accounts ?
3. Write a short note on Prime Cost.
4. Write a note on Cost Volume Profit Analysis.
5. State the term Financial Statement.
6. What is Funds Flow Statement ?
7. What is P/V ratio ?
8. What is the concept of working capital ?
9. Write any two importance of financial management.
10. Define marginal cost.
Answer any FOUR questions.
All questions carry equal marks.
11. Journalise the following :
(a) Booked an order with Mr. Rakesh for Rs. 4,000.
(b) Paid wages for construction of building Rs. 1,500.
(c) Goods given as charity worth Rs. 500.
(d) X closed his account by paying us Rs. 950 after deducing 5 % cash discount.
18. Mr. Muthu runs a tempo service in the town and has two vehicles. He furnishes you the following data and wants you to compute the cost per running km.
|
Vehicle - A |
Vehicle - B | |
|
Rs. |
Rs. | |
|
Cost of vehicle |
25,000 |
15,000 |
|
Road licence per year |
750 |
750 |
|
Supervision and salary (yearly) |
1,800 |
1,200 |
|
Drivers wages per hour |
4 |
4 |
|
Cost of fuel per litre |
1-50 |
1-50 |
|
Repairs and maintenance per km. |
1-50 |
2-00 |
|
Tyre cost per km. |
1-00 |
0-80 |
|
Garage rent per year |
1,600 |
550 |
|
Insurance (yearly) |
150 |
500 |
|
Km. run per litre |
6 |
5 |
|
Km. run during the year |
15,000 |
6,000 |
|
Estimated life of vehicle |
1,00,000 |
75,000 |
|
km. |
km. |
Charge interest at 10 % p.a. on the cost of the vehicle. The vehicles run 20 km. per hour on an average.
Rs.
Carriage on purchases - 3,600 Provision for doubtful debts- 1,000 Bad debts written - off - 1,600 Adjustments :
(i) Stock on 31-12-2005 was estimated as Rs. 40,120.
(ii) Write - off depreciation on business premises Rs. 600 and furniture Rs. 520.
(iii) Make a provision of 5 % on debtors for bad and doubtful debts.
(iv) Allow interest on capital at 5 % and carry forward Rs. 1,400 for unexpired insurance.
Prepare final account for the year ended 31-12-2005.
(e) Paid Rs. 600 to Shyam on account of Mohan.
(f) Received commission from Harish Rs. 100.
12. What are main objectives of cost accounting ?
13. What are the types of financial analysis ?
14. The following information of a company is given:
Current ratio 2-5:1;
Acid - test ratio 1-5:1;
Current liabilities Rs. 50,000.
Find out:
(a) Current assets.
(b) Liquid assets.
(c) Inventory.
15. Explain scope of financial management.
16. The sales turnover and profit during two years were as follows :
|
Year |
Sales Rs. |
Profit Rs. |
|
2004 2005 |
1.40.000 1.60.000 |
15.000 20.000 |
You are required to calculate :
(i) P/V ratio.
(ii) Sales required to earn a profit of Rs. 40,000.
(iii) Profit when sales are Rs. 1,20,000.
SECTION - C (2 x 20 = 40)
Answer any TWO questions.
All questions carry equal marks.
17. The following are the ledger balances extracted from books of Raja :
Rs.
Rajas capital - 50,000
Business premises Creditors Opening stock Debtors
Rent from tenants
Rs.
5,200
40.000 26,600
44.000
36.000 2,000
2,20,000
3,01,000
5.000 800
4.000
8.000
18.000 4,400
Purchases
Sales
Return inwards Discount (Cr.)
Taxes and insurance General expenses Salaries
Commission allowed
Figures for the year Rs.
(iii) Lag in payment of wages
and other out going :
Wages W2 weeks - 2,60,000
Stock, materials, etc.
IV2 months - 48,000
Rent, royalty etc. 6 months - 10,000
Clerical staff Vi month - 62,400
Manager Vi month - 4,800
Miscellaneous expenses
W2 months - 48,000
(iv) Payment in advance :
Sundry expenses (paid
quarterly in advance) - 8,000
(v) Undrawn profit on the
average throughout the year - 11,000
Set up your calculations for the average amount of working capital required.
Figures for the year Rs.
(iii) Lag in payment of wages
and other out going :
Wages W2 weeks - 2,60,000
Stock, materials, etc.
IV2 months - 48,000
Rent, royalty etc. 6 months - 10,000
Clerical staff Vi month - 62,400
Manager Vi month - 4,800
Miscellaneous expenses
W2 months - 48,000
(iv) Payment in advance :
Sundry expenses (paid
quarterly in advance) - 8,000
(v) Undrawn profit on the
average throughout the year - 11,000
Set up your calculations for the average amount of working capital required.
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Attachment: |
| Earning: Approval pending. |
