Punjabi University 2007 M.Com Accounting and Finance FINANCIAL MANAGEMENT AND ACCOUNTING - Question Paper

M.com exam May 2006 - FINANCIAL MANAGEMENT AND ACCOUNTING


Paper – II FINANCIAL MANAGEMENT AND ACCOUNTING

Time: 3 hours Maximum: 100 marks

part A ans ALL the ques.. (8 x five =40 marks)


1. (a) State the rules of double entry system and discuss the advantages of double entry system of
Bookkeeping?
Or
(b) What is trial balance? Why is it prepared?


2. (a) Distinguish ranging from Profit and Loss account and Balance sheet.
Or
(b) discuss the role of ratio analysis in the interpretation of financial statements.


3.(a) What do you mean by variance analysis?
Or
(b) elaborate the objectives of budgetary control?


4. (a) elaborate the limitations of funds flow statement? ..
Or
(b) provide 5 points of differences ranging from cost accounting and financial accounting.


5. (a) Determine the value of closing stock from the subsequent details.
Sales Rs. 4,00,000
G.P. ratio1 10% on sales
Stock velocity four times
Closing stock was Rs. 10,000 in excess of opening stock.
Or
(b) From the subsequent balances extracted at the close of the year ended 31st December, 1998,
prepare the profit and loss alc as at that date:
Rs.
Gross profit 1,53,000
Carriage outward 7,500
Salaries 27,500
Discount (Dr.) 1,500
Apprentice premium (Cr.) 4,500
Rent 3,300
Travelling expenses 600
Fire insurance premium 2,700
Rates and taxes 1,050
Printing and stationary 750
Trade expenses 900
Bad debts 6,300



6. (a) What do you mean by perpetual inventory?
Or
(b) A worker completes a job in a certain number of hours. The standard time allowed for the
job is 10 hours, and the hourly rate of wages is Re. 1. The worker earns at the 50% rate of
bonus Rs. 2' under Halsey plan.
Ascertain his total wages under the Rowan Premiurn Plan.


7. (a) What do you mean by labour turnover?
Or
(b) Distinguish ranging from Balance sheet and Fund Flow Statement.


8. (a) elaborate the advantages of standard costing?
Or
(b) From the subsequent data calculate:
(i) PN ratio
(ii) Profit when sales are Rs. 20,000
(iii)Fixed expenses Rs. 4,000
(iv)Break even sales Rs. 10,000.


part B ans ALL the ques.. (5 x 12 = 60 marks)


9. (a) "Marginal costing is a valuable aid for Managerial Decisions" - explain.
Or
(b) discuss the procedures for the preparation of fund flow statement.


10. (a) describe the term "financial statements". explain their purposes.

Earning:   Approval pending.