West Bengal Institute of Technology (WBIT) 2010-7th Sem B.Tech Computer Science and Engineering Computer Science -Financial Management and Accounts - Question Paper
Name :...............................'TT7..............................
Roll No. :....................................................................
Invigilators Signature :...............................................
CS/B.TECH (CSE/IT/EIE (OJ/EE (0+N)/CT/ICE/SEM-7/HU-701/2010-11
2010-11
FINANCIAL MANAGEMENT & ACCOUNTS
Time Allotted : 3 Hours Full Marks : 70
The figures in the margin indicate full marks.
Candidates are required to give their answers in their own words
as far as practicable.
GROUP-A ( Multiple Choice Type Questions )
1. Choose the correct answers for any ten of the following :
10x1 = 10
i) Agreement of Trial Balance ensures
a) the arithmetic accuracy of recording transactions
b) the arithmetic accuracy of Ledger posting
c) the arithmetic accuracy of all accounting records
d) the arithmetic accuracy of cash position of business.
ii) Working capital means
a) Current Assets (-) Non-current Liabilities
b) Non-current Assets (-) current Liabilities
c) Current Assets (-) Current Liabilities
d) Current Assets (-) Inventory (of work in process)
iii) The Break-even point is the point at which the firm makes
a) Zero profit -
b) Super profit
c) Normal profit
d) Optimal profit (in units).
iv) Margin of safety means
a) BEP sales (-) Actual sales
b) Budgeted sales (-) BEP sales
c) Actual sales (-) BEP sales
d) BEP sales (-) total contribution.
v) The debit balance of P/L account indicates .
a) Gross Loss
b) Net Profit
c) Net Loss
d) the presence of a suspense account.
vi) Wages paid for erection of new plant is
a) Revenue expenditure
b) Capital Expenditure
c) Deferred revenue expenditure
d) Miscellaneous expenditure.
vii) Stores ledger is maintained in
a) Store Department
b) Accounts Department
c) Cost Accounts Department
d) Purchase Account Department.
viii) Direct wages is a .
a) Fixed cost b) Variable cost
c) Semi-variable cost d) Step cost.
ix) Liquid assets is equal to
a) Current assets-Stock
b) Current assets-Stock and prepaid
c) Current assets-Fictitious assets
d) Current assets-Prepaid expenses.
x) Current ratio measures
a) the solvency of the business
b) the liquidity of the business
c) the profitability of the business
d) the efficiency of the business.
xi) The maintenance department of a thermal power plant is a
a) Revenue centre b) Critical centre
c) Profit centre d) Cost centre.
* -
GROUP -B ( Short Answer Type Questions)
Answer any three of the following. 3x5=15
2. Using the information given below, compute the payback period under discounted payback method :
Initial investment Rs. 1,20,000. Estimated life 4 years. Profit after tax (at the end of) four years are Rs. 40,000, Rs. 45,000, Rs. 50,000 and Rs. 35,000 respectively. Expected scrap value after four years estimated Rs. 20,000.
Depreciation has been calculated under the straight line method. The cost of capital may be taken at 20% p.a. and the present value of Re. 1 at 20% p.a. is given below :
Year; l 2 3 4
PV factor: 0.83 0.69 0.58 0.48
3. What is meant by "Accounting Rate of Return" method of capital budgeting ?
4. Distinguish between Cash book and Cash flow statement.
5. XYZ Ltd. gives you the following information :
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Rs. |
Rs. | ||
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Stock-in-trade : |
80,000 |
Debtors : |
60,000 |
|
Bills Receivable : |
20,000 |
Cash-in-hand: |
20,000 |
|
Cash-at-bank: |
50,000 |
Creditors : |
40.000 |
|
Bills Payable : |
10,000 |
Outstanding expenses : |
4,000 |
|
Furniture : |
30,000 |
Preliminary expenses : |
6,000 |
|
Short term investment |
: 40,000 |
Short term loan : |
10,000 |
|
Compute the (a) Gross working capital (b) Net working capital 2 + 3 | |||
6. State the purpose of preparing Cost Sheet with at least three examples.
GROUP -C ( Long Answer Type Questions)
Answer any three of the following.
3 x 15 = 45
7. a) What do you mean by Benefit cost ratio method ?, How
is this applied in a company decided to invest in a nuclear power project ?
b) Distingnish between Master budget and Flexible budget
(5 + 5) + 5 = 15
8. XY Company Limited manufactures two products A and B. An estimate of the number of units expected to be sold in the first seven months of 2011 is given below :
|
MONTH |
PRODUCTA |
PRODUCT B |
|
January |
500 |
1400 |
|
February |
600 |
1400 |
|
March |
800 |
1200 |
|
April |
1000 |
1000 |
|
May |
1200 |
800 |
|
June |
1200 |
800 |
|
July |
1400 |
1000 |
It is anticipated that there will be no work-in-progress at the end of any month, and finished units equal to half the anticipated sales for the next month will be in stock at the . end of each month(including December, 2010).
The budgeted production costs for the year ending 31st Dec., 2011 are as follows :
Product A Product B
Production (units) 11000 12000
Direct materials per unit (Rs.) 12 19
Direct wages per unit (Rs.) 5 7
Other manufacturing charges
apportionable to each type of
product (Rs.) 33,000 48,000
You are required to prepare (a) Production budget showing the number of units to be manufactured each month (b) a summarized production cost budget for 6 month period-Januaiy to June 2011.
9. Following ratios are extracted from the books of Basumati Ltd. :
i) Gross Profit Ratio 20%
ii) Debtors Turnover / Velocity 2 months
iii) Stock Turnover 6 times
iv) Creditors velocity 1 month
v) Gross profit for the year Rs. 1,20,000
vi) Bills Receivable Rs. 26,000
vii) Bills Payable Rs. 3,833
Find out : (a) Sales (b) Sundry Debt6rs (c) Closing Stock which is Rs. 10,000 more than the Opening Stock (d) Sundry Creditors.
10. From the following information prepare a statement showing the estimated Working Capital to be required by a newly formed manufacturing company with the production capacity of 9000 units per year, for 2008.
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Following are the further information : | ||||||||||||||
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2 months 1 month
3 months 5 months
4 months V2 month
1 month Rs. 12,000
Raw Materials are in stock on an average Raw Materials are in process on an average Finished Goods are in stock Credit allowed to Debtors Credit allowed by Creditors Credit allowed by employees
Lag in payment in overheads
Cash in hand & at bank
Production is not carried on evenly diiring the year and wages & overheads not accrued similarly.
11. A project costs Rs. 16,000 and is expected to generate cash inflows of Rs. 8,000, Rs. 7,000 and Rs. 6,000 at the end of each year for next 3 years. Calculate IRR at 15% and 16% discount rate.
P.V. Factor 16% 15%
1st year 0.862 0.870
2nd year 0.743 0.756 3rd year 0.641 0.658
Also calculate the net present value at 15% discount factor and comment on the acceptability of the project.
12. The following details are available in respect of a consignment of 1250 kgs of material X.
a) Invoice Price Rs. 20 per kg.
b) Excise duty 25%
c) Sales Tax 8% on Invoice Price including
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d) Trade Discount e) Insurance |
f) Delivery charges excise duly 10% on Invoice price 1% of aggregate Net Price Rs. 250 |
g) Cost of containers @ Rs. 60 per container for 50 kgs of materials. Rebate is allowed @ Rs. 40 per container if returned within 6 weeks, which is a normal feature.
h) One container load of materials was rejected on inspection and not accepted.
i) Cost of unloading and handling @ 0.25% of the cost of materials ultimately accepted.
On the basis of above, you are required td find out the landed cost per kg of material X.
7001 8
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Attachment: |
| Earning: Approval pending. |
