Maharishi Markandeshwar University (MMU) 2008 M.B.A Financial Management accounting - Question Paper

M.B.A first SEMESTER exam
PAPER: CP-204
FINANCIAL MANAGEMENT ACCOUNTING
Time allowed: three Hours Maximum Marks:60
Attempt any five ques. in all.All ques. carry equal marks.

UNIT-A

1.What are Basic accounting concepts? discuss their implications.

2.Why Depreciation is charged? discuss fixed installment and diminishing balance methods by taking practical examples.

3.What is the difference ranging from fund flow statement and cash flow statement?Discuss.

4.What is meant by budgetary control system? Mention the kinds of budgets prepared by the big industrial undertaking.

UNIT-B

5.Prepare a trading and profit & loss account for the year ended 31st march 2007 and a B/S on that date making the subsequent adjustments:
(a) Depreciate furniture by 10% on original cost.
(b) Make a provision for bad debts equal to 5% on debtors.
(c) Salary for the month March 2007 amounting to Rs.900 were unpaid.The balance in this account including Rs.600 paid in advance.
(d) Insurance is prepaid to the extent of Rs.1200.
(e) give Rs.2400 for office expenses.
(f) Closing stock was valued at Rs.18000.

Trial Balance as on 31-3-2007

Name of account Dr.Balances Cr.Balances

Purchase & Sales 45,000 96,300
Debtors and Creditors 60,000 36,000
Sale and Purchase returns 3,000 1,500
Interest earned --- 1,200
Salaries 9,000 ---
Wages 6,000 ---
Rent 4,500 ---
Bad debts 2,000 ---
Capital --- 30,000
Drawings 7,200 ---
Provision for bad debts --- 1800
Printing and stationary 2,400 ---
Insurance 3,600 ---
Opening Stock 15,000 ---
Office expenses 3,600 ---
Furniture 6,000 ---
Provisions for Depreciation --- 1,200
Prepaid insurance on 1-4-2006 700 ---
_________ __________
1,68,000 1,68,000

6. From the subsequent data you are needed to compute :
(a) P/V Ratio.
(b) Break even salary with the help of P/V ratio.
(c) Salary needed to earn profit of Rs.4,50,000.
Given-
Fixed expenses= Rs.90,000
Variable Cost per unit:
Direct Material=RS.5
Direct Labour = Rs.2
Direct overheads = 100% of direct labour
Selling Price per unit= Rs.12

7. The standard materials needed for producing 100 units is 120 kgs.A standard price of 0.50 paisa per kg. is fixed and 2,40,000 units were produced during the period.Actual material purchased were 3,00,000 kgs at a cost of Rs.1,65,000.Calculate Material Variances.

8.Write notes on:
(a) Revenue Recognition
(b) Deffered liabilties.

Earning:   Approval pending.