Madras University (UnOM) 2006 M.C.A Computer Aplications Financia Accounting and Analysis - Question Paper

Time: 3 hours
Maximum: 75 marks

PART A - [5 x five = Marks 25]

ans ALL ques..
All ques. carry equal marks.

1. (a) What is a trial balance? Why is it prepared?

Or

(b) What is a Petty cash book? How will you maintain it on imprest, system?

2. (a) elaborate the mangerial uses of funds flow statements?

Or

(b) describe an asset. elaborate the classifications of assets?



3. (a) discuss the significance of ratio analysis.

Or

(b) discuss the importance of 'quick ratio'.

4. (a) What is material usage variance? discuss.

Or

(b) How marginal costing helps in decision making?

5. (a) What is a flexible budget? discuss.

Or

(b) elaborate the merits and limitations of payback method?

PART B - [5 x 10 = Marks 50]
ans any 5 ques..
All ques. carry equal marks.

6. A Newly started company wishes to prepare cash budget from January. Prepare a cash budget for the 1st 6 months from the subsequent estimated revenues and expenses :


Months Total Materials Wages Overheads sales
Rs. Rs. Rs. Rs.
Jan 20,000 20,000 4,000 4,000
Feb 22,000 14,000 4,400 4,200
March 24,000 14,000 4,600 4,100
April 26,000 12,000 4,600 4,300
May 28,000 12,000 4,800 4,400
June 30,000 16,000 4,800 4,600
Cash balance on first Jan. was Rs. 10,000. A New Machine is to be installed at Rs. 30,000 to be paid in 2 equal instalments in March and April. Sales commission @ 5% on total sales is to be paid with in the month subsequent true sales. Call money is to be received Rs. 12,000 in March.

Period of credit allowed by suppliers - two months
Period of credit allowed to customers - one month
Delay in payment of ' - one month Delay in payment of wages two month

presume cash sales to be 50% of total sales.

7. A Ltd. provides the subsequent info. For making 10 kg of GEMCO the standard material requirement is
Material Quantity (Kg) Catering (Rs.)
A 8 6.00
B 4 4.00
During April 2000, 1,000 Kgs of GEMCO were produced. The true consumption of materials is as under:
Material Quantity (Kgs) Rate/Kg (Rs.)
A 750 7.00
B 500 5.00
compute :
(a) Material price variance
(b) Material usage variance
(c) Material cost variance.

8. From the subsequent data, compute
(a) P/V ratio
(b) Profit when sales are Rs. 20,000
(c) Sales needed to earn a profit of Rs. 10,000
(d) New BEP if selling price is decreased by 20%

Fixed costs - Rs. 4,000
BEP - Rs. 10,000.

9. From the subsequent balance sheets prepare a funds flow statement:
Dec.31, 2000 Dec. 31, 2001
Rs. Rs.
Share capital 3,00,000 3,75,000
Creditors 1,06,000 70,000
P&LA/c 14,000 31,000
4,20,000 4,76,000
Machinery 70,000 1,00,000
Stock 1,21,000 1,36,000
Debtors 1,81,000 1,70,000
Cash 48,000 70,000
4,20,000 4,76,000
Depreciation on Machinery Rs. 20,000. Dividends paid Rs. 20,000.

10. From the subsequent information, prepare the balance sheet with as many details as possible
Current ratio - 2.5
Liquid ratio - 1.5
Fixed assets/Prop. funds - 0.75
Net-working capital Rs. 60,000
Reserve and surplus Rs. 40,000
Bank overdraft Rs. 10,000

There is no long term loan or any intangible asset.

11. From the subsequent info compute the NPV of the 2 projects and suggest which of the 2 projects should be accepted assuming a discount rate of 10%.
Project X Project Y
Initial investment Rs. 20,000 Rs. 30,000
Estimated life 5 yrs 5 yrs
Scrap value Rs. 1,000 Rs. 2,000

The profits before depreciation and after taxes (cash flows) are as follows:
Years 1 2 3 4 5
Project X: Rs. 5,000 10,000 10,000 4,000 4,000
ProjectY: Rs.14,000 10,000 6,000 6,000 6,000

12. A consignment consisted of 2 chemicals A and B. The invoice gave the subsequent data:
Rs.
Chemical A - four tonnes @ Rs. 5/Kg 20,000
Chemical B - two tonnes @ Rs. 2/Kg 4,000

Sales tax 1,200
Freight 900
26,100

A shortage of 200 kgs in A and 100 kgs in B was noticed and it was considered Normal. What rate per kg would you adopt for pricing problems assuming a provision of 20% towards further deterioration.

13. The subsequent Trading and P & L account has been prepared by a Junior accountant of a firm. Redraft it correctly.

Trading Account
Rs. Rs.
To Opening stock 7,352 By Closing stock 9,368



Purchases 63,681 " Sales 1,70,852



Creditors 25,375 " Debtors 40,659


Carriage inwards 2,654 " Gross loss 8,182

Rs. Rs.


Carriage outwards 394


Salaries 24,370



Wages 51,963


Rent and rates 3,981


Repairs to factory 35,368


Insurance 13,923



-2,29,061 2,29,061


P & L A/c


Rs. Rs.


Gross loss b/d 8,182 Bank O.D. 17,681


Interest on loan 6,180 Interest on


Dividend from Bank OD 123

investments 9,375 Net loss 39,691

Rs. Rs.

Furniture 17,681


Telephone charges 985


Electric charges 2,756


Depreciation 663


General expenses 11,673


57,495 57,495

Earning:   Approval pending.