Pondicherry University 2007 M.B.A Accounting for Managers - Question Paper
M.B.A. DEGREE EXAMINATION, JUNE 2007
FIRST SEMESTER
PAPER three Accounting for Managers
MBA 03
M.B.A. DEGREE EXAMINATION, JUNE 2007.
First Semester
Paper III ACCOUNTING FOR MANAGERS
(Common for HRM/Marketing/Finance/International
Business)
Time : Three hours Maximum: 100 marks
SECTION A (5 x 6 = 30 marks)
Answer any FIVE out of the following.
1. What are the functions of Accounting?
2. Explain the usage of Tally package.
3. What are the causes of depreciation?
4. What are Financial statements?
5. What are the assumptions of BEP analysis?
6. Pass necessary Journal entries for the following :
2005, Jan. 1 X Started business with cash Rs. 1,00,000
4 Cash paid into Bank Rs. 50,000
8 Goods purchased for Rs. 20,000 with 5% Trade discount
10 Sold goods to Mani Rs. 10,000
14 Purchased a motor cycle for his son Rs. 15,000 by cheque.
18 i Paid Rent Rs. 1,000
7. A plant has the original value of Rs. 10,000. The management depreciates the plant at 10% p.a. on diminishing Balance method. How will the plant be shown in the Balance Sheet at the end of the fourth year?
8. The following data are available from the records of a company.
Sales Rs. 60,000
Variable cost Rs. 30,000
Fixed cost Rs. 15,000
Calculate p/v ratio, BEP, and margins of safety.
Calculate
(a) BEB, P/V ratio, and margins of safe by for each company.
(b) State which company is likely to earn more profit in the condition of
(i) Heavy Demand and
(ii) Low demand for the product.
|
Rs. | ||
|
Direct wages |
75,000 | |
|
Direct Expenses |
25,000 | |
|
Factory Expenses |
37,500 | |
|
Office expenses |
62,500 | |
|
Selling expenses |
25,000 | |
|
You are required to prepare cost per unit and total cost at each |
a cost sheet showing stage. | |
|
SECTION C |
(1x20 = |
= 20 marks) |
|
17. Compulsory | ||
|
The following are the budgeted data relating to Shoba Ltd. and Selva Ltd. producing identical products. | ||
|
Shoba Ltd. |
Selva Ltd. | |
|
Rs. |
Rs. |
Rs. Rs. |
|
Sales |
3,00,000 |
3,00,000 |
|
Fix cost 30,000 |
70,000 | |
|
Variable cost 2,40,000 |
2,70,000 |
200000 2,70,000 |
|
Profit budgets |
30,000 |
30,000 |
9. Explain the various accounting concepts.
10. Distinguish between capital and revenue expenditure.
11. What are the methods of depreciation?
12. Explain the elements of cost.
13. From the following trial balance prepare trading, and profit and loss a/c and Balance Sheet.
|
Particulars Capital Sales Purchases Salaries Rent Insurance Drawings Machinery Bank Cash Stock Debtor and creditor |
Debit Credit Rs. Rs. 40.000 25.000 15.000 2,000 1.500 300 5.000 28.000 4.500 2,500 1,000 |
(a) Closing Stock Rs. 4,900
(b) Outstanding salaries Rs. 300.
(c) Pre paid Rent Rs. 200
(d) Insurance prepaid Rs. 90
(e) Goods taken for own use Rs. 200 in the month of December.
14. From the following details, make out the balance sheet with as detail are possible :
|
(a) |
Stock velocity |
6 |
|
(b) |
Capital turnover ratio |
2 |
|
(c) |
Fixed assets turnover ratio |
4 |
|
(d) |
Gross profit turnover ratio |
20% |
|
(e) |
Debtor velocity |
2 months |
|
(f) |
Creditor velocity |
73 days |
|
The |
gross profit was Rs. 60,000. Reserve | |
surplus amounts to Rs. 20,000. Closing stock was Rs. 5,000 in excess on opening stock.
15. Balance sheets of m/s ABI as on 1st Jan. and 31st December 2005 were as follows :
|
Liabilities |
1-1-2005 |
31.12.05 |
Assets |
1.1.2005 |
31.12.05 |
|
Capital |
1,50,000 |
1,90,000 Cash |
20,000 |
26,000 | |
|
Loan |
30,000 |
- |
Debtors |
54,000 |
76,000 |
|
Bank o/d |
60,000 |
80,000 Stock |
48,000 |
42,000 | |
|
Creditors |
50,000 |
56,000 Furniture |
2,000 |
2,000 | |
|
Machinery |
90,000 |
65,000 | |||
|
Land |
36,000 |
45,000 | |||
|
Buildings |
40,000 |
70,000 | |||
|
2,90,000 |
3,26,000 |
2,90,000 |
3,26,000 | ||
During the year a machine costing Rs. 12,000 (accumulated depreciation Rs. 4,000) was sold for Rs. 5,500. The provision for depreciation against machinery as on 1-1-2005 and 31-12-2005 Rs. 24,000 and Rs. 37,000 respectively. Net profit for the year amounted to Rs. 60,000.
Prepare fund flow statement.
16. During the year 2005, Koki Ltd, produced 50,000 units of a product. The following were the expenses.
Rs.
Stock of raw materials on 1-1-2006 10,000 Stock of raw materials on 31-12-2006 20,000 Purchases 1,60,000
|
Attachment: |
| Earning: Approval pending. |
