Biju Patnaik University of Technology 2008-3rd Sem M.C.A Financial & Management Accounting - Question Paper

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Third Semester Examination - 2008 FINANCIAL AND MANAGEMENT ACCOUNTING Full Marks-70 Time: 3 Hours

Answer Question No, 1 which is compulsory and any five from the rest.

Figures in the right hand margin indicate marks.

II. Answer the following questions : 2x10

What do you mean by Accounting standards ?

Name two internal users of accounting Information.

(c) What do. you mean by .Marshalling of Assets and Liabilities ?

vd) In wtiJcti side oJ ihe Trial Balance the

following items appear ?

(i) Outstanding Rem

00 Apprentice Premium.

{&} Pass opening journal eniry from the following information:

R*    Rs.

Undl A BtJiJdmg 75.000    Creditors    10,000

Plant & Machinery 50,000    Furniture    10,000

loan    50,000    Cash    5,000

Dtibiora    20.000

JJ) Whai is meant by over subscription of shares ?

{5) Give two distinctions between equity share and preference share.

What is Debt Equity Ratio ?

Distinguish between Gross Concept and Net Concept of working capital,

Give one major difference between Funds flow and Cash flow anaiysis.

2. What do you mean by Generally Accepted Accounting Principles (GAAP) ? Explain the important concepts which form the backbone of Accounting,    2+8

What do you mean by Working Capital ? Discuss the factors influencing working capital requirements.    10

A. From the following prepare Trading, Profit / Loss A/c. and Balance Sheet as on 31 st December 2007 :    10

\

Particulars Amount JRs.) Particular Amount fRs.J' 1 Opening Slock iaooo Sales 90,000 Cash ai Bank 4,000 Bank overdraft 55,000 I Purchases 70,000 Returns outward 4,000 Return inward 3.000 Creditor? 21,000 Debtors 30.000 Capital 3O,QO0l Building 30,000 Provision for Furniture & Fillings 7,000 Bad Debt 2.000 Carnage inward 1,000 Commission 2.000 Salaries 11.000 Trade expanses 6,&00 Insurance 1,500 !l ,74.000 1,74,000

I

Additional Information :

(a)    Closing stock Rs. 15,000,

(b)    Building and Furniture / Fittings are to be depreciated @ 10% and 20% respectively.

(c)    Further Bad debts Rs, 1 _rGQ0 are to be written off and provision of 5% is to be ,maintarned.

(d)    Commission received in advance Rs, il_Jf000.

5. From the following Balance Sheet of Shoubhagya Ltd. prepare schedule of changes in Working CapitaJ and Funds Flow Statement:    10

Liabilities	005 (Rs.)	006 I (Rs,)	Assets	2005 (Rs,)	2006 (RS,)
Share Capital	1,00,000	1,25,000'	Land &
reserve	25.000	3C.0M	Bulltfirig	i.oa.ooo	95,0OQ
P/L Awounl	15,250	15,300	Plant 5
Loan	35,000	-	Machinety	75,000	B4.QQ0
Creditors	75.000	67.500	Stock	sohoot>	37,000
Bills payable	15,000	17,000	Debtors	40,000	32,000
			Cash	250	BOO
			Bank	-	4,000
			Bll)s
			Racavg bks	-	2,000
	2,65,250	rE5,300		2,65,250	2,55,300

Additional Information;

(a)    Dividend of Rs. 11,000 was paicl during 2006,

(b)    Depreciation on Plant and Machinery was written off @ 1.Q% p.a,

From the following particulars prepare a statement of working capital requirements. 10

Raw material    Rs. 40 per unit

Labour    Rs. 10 per unit

Overhead    Rs. 30 per unit

(a)    The level of activity is 1,30,000 units

(b)    Selling price is Rs. 1.20 per unit

(c)    Raw materials in stock - 6 weeks

(d)    Raw materials in process - 4 weeks fe) Finished goods in stock - 8 weeks

(f) Credit allowed by suppliers - 4 weeks ifg) Credit allowed to Debtors - 10 weeks

(h)    Tiifiie lag for payment of

wages     2 weeks

(i)    Cash requirement Rs. 1,00,000.

7. (a) What do you understand by issue of    shares at par, premium and discount ?

4

(b) Give joumaf entries for Issue of shares from application money to final call; 6

What is Ratio Analysis ? Explain the liquidity and profitability ratios with suitable examples.

2+S

s

4

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Attachment: biju-patnaik-university-of-technology-2008-m-c-a--36296-1.pdf

Earning:   Approval pending.