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

Its

Discount (Cr.) 5,000

Expenses paid 10,000


Taxes 5,000


Salaries 22,500


Commission (Dr.) 5,500


Carriage on purchases 4,500

Reserve for doubtful debts 5,000
8. From the subsequent data, prepare a profit and loss a/c and a balance sheet as on 31.3.2002.


Particulars Its Particulars Its
Drawings 10,000 Capital 30,000
Purchases 30,000 Purchase returns 1,000
Sales Returns 5,000 Sales 60,000
Carriage in 2,000 Wages outstanding 2,000
Carriage out 3,000 Rent received 1,000
Depreciation on Reserve for
Plant 4,000 doubtful debts 1,000
Plant account 20,000 Interest (Cr.) 5,000

Particulars Rs. Particulars Rs.

Salaries & wages 3,000 Sundry creditors 6,000
Bad debts 2,000 Loans 38,000
Premises 20,000
Interest 5,000
Stock 1.4.2001 25,000
Sundry debtors 15,000
1,44,000 1,44,000

Adjustments
(a) Stock on 31.3.2002 was Rs. 40,000. A fire broke-out in the godown and destroyed stock worth Rs. 5,000. Insurance company had accepted the claim in fun.

(b) give for bad debts @ 10% and give for discount on debtors @ 5% and on creditors @ 10%.

(c) Depreciate buildings at the rate of 15% Pa.

(iv) Rent outstanding amounted to Rs. 1,000.

(a) Closing stock includes samples worth of Rs. 2,000.

M give interest on drawings @ 10% and on capital @ 10%.

9. Prepare a Balance Sheet with as many details as possible from the subsequent information:

Gross profit ratio 20%
Debtors turnover six times
Fixed assets to net worth 0.80
Reserves to capital 0.50
Current ratio 2.50
Liquid ratio 1.50
Net working capital Rs. 3,00,000
Stock turnover ratio six times

10. The P/V ratio of a firm dealing in precision instruments is 50% and margin of safety is 40%. You are needed to work-out break even point and the net profit if the sales quantity is Rs. 50,00,000. If 25% of variable cost is Tabour cost, what will be the effect on BEP and profit when labour efficiency reduces by 5%?

11. Prepare a flexible budget on the basis of the data provided beneath and ascertain the total cost at 40% capacity and 80% capacity levels.
At 40% At 60% At 80%
Capacity Capacity Capacity
Rs. Rs. Rs.
Fixed Costs:
Salaries 30,000
Insurance 20,000
Variable Costs:
Materials 90,000
Wages 75,000
Semi variable costs
Maintenance
(60% variable) 24,000


Lighting
(50% fixed) 16,000


Supervision
(80% fixed) 30,000

Total Cost 2,85,000
12. 2 projects M and N which are mutually exclusive are being under consideration. Both of them require an investment of Rs. 1,00,000 every. The net cash inflows are estimated as under:
Year Project M Project N
Rs. Rs.
1 10,000 30,000
2 40,000 50,000
3 30,000 80,000
4 60,000 40,000
5 90,000 60,000
The company's targeted rate of return on investments is 12%. You are needed to assess the projects on the basis of their current values using (a) NPV method and (b) Profitability index method.

current values of Re. one at 12% Interest for 5 years are provided beneath :

I st year: 0.893; second year: 0. 797; third year: 0. 712; fourth year: 0.636; fifth Year: 0.567.

13. From the subsequent Balance Sheet of Geervani and Co. Ltd. you are needed to calculate :

(a) Fixed Assets Ratio; N Debt equity ratio; (c) Proprietary ratio; (d) Capital gearing ratio; (e) Solvency ratio (total debt ratio).

Balance Sheet as on 31.3.2001.


Liabilities Rs. Assets Rs.


5000 Equity share Goodwill 5,00,000


of Rs.100 each 5,00,000 Fixed Assets 20,00,000


4000 8% Preference Current Assets 10,00,000


shares of Rs. 100

each 4,00,000


Reserves &


Surplus 6,00,000


10% Debentures 10,00,000


Current Liabilities 10,00,000


35,00,000 35,00,000

Earning:   Approval pending.