Jawaharlal Nehru Technological University Hyderabad 2010-1st Sem M.B.A -ester Supplementary s FINANCIAL ACCOUNTING AND ANALYSIS - Question Paper

Code No: 11004
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA-I Semester Supplementary exams July 2010
FINANCIAL ACCOUNTING AND ANALYSIS
Time: 3hours Max.Marks:60
ans any 5 ques.
All ques. carry equal Marks
- - -
1. explain briefly about the Generally Accepted Accounting Principals(GAAP)
2. discuss about different subsidiary books prepared by an organization
3. What is Goodwill? discuss about the methods of evaluation of Goodwill
4. What is forfeiture and re- problem of forfeited shares? State the steps involved in
re- problem of forfeited shares.
5. explain about the techniques of financial statement analysis
6. The balance sheets of M & Co. and N & co. are as follows
Balance sheets as Dec 31,2009
Liabilities M & Co Rs N & Co
Rs.
Preference share capital
Equity share capital
Reserves and surpluses
Long term loans
Bills payable
Creditors
Outstanding expenses
Proposed dividend
Total
Assets;
Land and buildings
Plant and machinery
Temporary investments
Inventories
Book debts
Prepaid expenses
Cash and Bank
Total
120000
150000
14000
115000
2000
12000
15000
10000
438000
80000
334000
1000
10000
4000
1000
8000
438000
160000
400000
18000
130000
---
4000
6000
90000
808000
123000
600000
40000
25000
8000
2000
10000
808000
Compare the financial position of the 2 companies with the help of Common
size Balance Sheet.
Cont…2
7. subsequent is the Profit and Loss account of Manyam Electricals Ltd for the year
ended 31st September,2009.
To Opening stock
To Purchases
To Wages
To Gross profit
To Administrative
expenses
To Selling and
Distribution
expenses
To Non operating
expenses
To Net Profit
1,00,000
3,50,000
9,000
2,01,000
6,60,000
20,000
89,000
30,000
80,000
----------
2,19,000
-----------
By Sales
By Closing stock
By Gross profit b/d
By interest on
investments(outside
business)
By Profit on sale of
investments
5,60,000
1,00,000
6,60,000
2,01,000
10,000
8,000
2,19,000
----------
You are needed to compute ;
1. Gross profit Ratio
2. Net profit Ratio
3. Operating Ratio
4. Operating profit Ratio
5. Administrative Expenses Ratio
8. From the subsequent Balance Sheets of Crompton Co. Ltd Prepare (a) Schedule of
modifications in Working Capital and (b) Funds Flow Statement
Liabilities 31 Dec2008 31st Dec.2009 Assets 31 Dec2008 31st Dec.2009
Capital
Creditors
Bills
payable
Profit &
Loss a/c
Total
120000
37000
15000
60000
---------
232000
150000
25000
17000
69000
---------
261000
Plant
Land and
Buildings
Patents
Cash
Debtors
Total
100000
75000
7000
17000
33000
---------
232000
125000
90000
9500
23000
13500
---------
261000
Additional information:
Depreciation of Rs. 20,000 and Rs 25,000 have been charged on plant,
land and buildings respectively in 2009.
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Earning:   Approval pending.