Amrita Vishwa Vidyapeetham 2007 M.C.A Financial Management - Question Paper

M.C.A. MAY 2007

Financial Management

Time : 3 hours Maximum : 100 marks
ans any 5 of the subsequent
1. (a) What do you mean by journal and ledger? discuss with suitable examples. (10)
(b) Rectify the subsequent errors :
(i) Purchases book is over cast by Rs. 300 (for the month of March).
(ii) Sales book has been under cast by Rs. 200.
(iii) Purchase returns book has been over cast by Rs. 75.
(iv) Sales returns book has been under cast by
Rs. 50.
(v) Sales returns a/c has been credited with
Rs. 50.
2. (a) What is Balance Sheet? Draw a Balance Sheet with imaginary figures. (10)
(b) Discuss the concept of financial statements and limitations of financial statements. (10)
3. Following is the Profit and Loss A/c of VSM Company for the year ending 31.03.2007 :
Rs. Rs.
Opening stock 1,00,000 Sales 5,60,000
Purchases 3,50,000 Closing stock 1,00,000
Wages 9,000
Gross profit 2,01,000
6,60,000 6,60,000
Administrative Gross profit 2,01,000
expenses 20,000 Interest on
Selling and investments
distribution (outside
expenses 89,000 business) 10,000
Non-operating Profit on sale of
expenses 30,000 investments 8,000
Net profit 80,000
2,19,000 2,19,000
Calculate :
(a) Gross profit ratio.
(b) Net profit ratio.
(c) Operating ratio.
(d) Operating profit ratio.
4. (a) What is a ‘funds flow statement’? Examine its use.
(10)
(b) What is a direct cost? discuss its significance. (10)
5. (a) What are the important requirements of a system of materials control? (10)
(b) Define Labour turnover. State its causes and effects. (10)
6. (a) What do you mean by allocation and apportionment of overheads? (10)
(b) What is ‘cost and profit’? Bring out its importance.
(10)
7. (a) Calculate Break Even Point from the subsequent :
Sales 1000 units at Rs. 10 every Rs. 10,000
Variable cost Rs. six per unit
Fixed cost Rs. 8,000.
(b) If the selling price is decreased to Rs. 9, what is the new break even point?
8. Draw up a flexible budget for production at 75% and 100% capacity on the basis of the subsequent data for a 50% activity.
Per unit
Rs.
Materials 100
Labour 50
Variable expenses (direct) 10
Administrative expenses (50% fixed) 40,000
Selling and distribution expenses (60% fixed) 50,000
current production (50% activity) 1,000 units

Earning:   Approval pending.