Jawaharlal Nehru Technological University Kakinada 2010-1st Sem M.B.A Subject Code: MB913 [R09] Regular s, FINANCIAL ACCOUNTING AND ANALYSIS - Question Paper

Time: three Hours

Max Marks: 60


ans any 5 ques. including Q.No8 which is compulsory

All ques. carry EQUAL marks




1State the Principles of Double Entry system of Accounting. provide briefly its chief advantages.


2. What is depreciation and how it is caused? Distinguish ranging from the straight line Method and
the written down value method of depreciation of capital assets.

3 Which inventory costing method assumes that the goods available for sale are homogeneous?

4 SNN Ltd. Issued 5,000 equity shares of Rs.25 per share, payable as follows:
On application: Rs. 11: On allotment: Rs.7: On 1st and final calls: Rs. 7:
All the shares were subscribed by the public. Shares were fully called-up and money
received other than on allotment and call on 200 share.
Pass necessary entries in the books of the company.

5. How do you treat payments made to debenture holders of transfer company by transferee
company?

6. provide the relation ranging from capital and income of an enterprise.

7. What is Trail Balance? Is it actual to say that outcome are right if Trial Balance tallies?

8 XYZ Ltd.has engaged the services of ABC Ltd. To design an office tower (over18 months)
ABC
agrees to accept 5000 shares of XYZ at Rs. 10 par value and 1000 choices on shares in
exchange for this service, but it will only receive half the number of shares if it delivers
completed drawing after due date. Also if the value of XYZs stock declines beow Rs.150 a share
at any point during the 6 months following to the issuance of shares, XYZ agrees to problem
additional shares to bring ABCs total compensation back up to Rs.150/shares. Which is capped
at a maximum additional stock issuance 2000 shares. The shre price of XYZ on commitment day
was Rs. 180 and the value of the stock choice is Rs.90 every.
XYZs stock price declines beneath Rs.180 immediately after the design is completed, so ABC
never exercise the stock choice.
The value of XYZ stock subsequently declines to Rs.100/share.
How do you recognize the share based payments in the financial statements of XYZ Ltd.

Earning:   Approval pending.