DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, DECEMBER 2017.
First Semester
FINANCIAL AND MANAGEMENT ACCOUNTING
(Upto 2012-13 Academic Year and 2013 Calendar Year)
Time Three hours Maximum 100 marks
PART A — X 8 40 marks)
Answer any FIVE questions.
1. Discuss the accounting concepts in brief.
2. Write note on
Errors of principle.
Errors of omission.
3. What are financial statements? Discuss the nature of
financial statements.
4. "Ratio analysis is a tool of management for measuring
efficiency and guiding business policies" Discuss.
5. What is "fund flow statement"? Explain its various uses.
6. Distinguish between fund flow and cash flow statement.
7. Describe the essentials of a good budgetary control
system.
8. Write short notes on
Master budget.
Flexible budget.
Sub. Code
14
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PART B — X 15 60 marks)
Answer any FOUR questions.
9. Differentiate Financial accounting and Management
accounting.
10. Prepare Trial balance on 31st December, 2015 from the
following balances.
Rs.
Capital account 1,29,440
Drawing account 11,550
Bills receivable 9,500
Plant and machinery 28,800
Sundry debtors 62,000
Loan account at 20,000
Wages 40,970
Return inwards 2,780
Purchases 2,66,590
Interest paid 3,400
Sundry creditors 66,190
Sales 3,50,430
Commission received 5,640
Rent and taxes 5,620
Stock 1st Jan. 2015 89,680
Salaries 11,000
Travelling expenses 1,880
Insurance 400
Cash in hand 530
Cash at Bank 18,970
Repairs 3,370
Bad debts 66,190
Furniture 8,800
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11. Calculate Current assets, Current liability, Stock
turnover ratio from the following information
Current ratio 2.5
Working capital Rs. 60,000
Opening stock Rs. 29,000
Closing stock Rs. 31,000
Sales Rs. 3,20,000
Gross profit ratio 25% on sales
12. Explain the sources and applications of funds.
13. Enumerate the procedure for preparation of comparative
and common size statements.
14. John Co. produces two products X and Y. Number of
units to be sold in the first 7 months are given below
Product/Month Jan. Feb. March April May June July
X 1000 1200 1600 2000 2400 2400 2000
Y 2000 2800 2400 2000 1600 1600 1800
Finished units equal to half the sales for the next month
will be in stock at the end of each month (including the
previous December)
Budgeted production X 22,000 units; Y 24,000 units
Prepare production budget for six months ending
30th June.
15. From the following information relating to Quick Ltd.,
you are required to find out
P.V. ratio
Break-even point
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Profit
Margin of safety
Volume of sales to earn profit of Rs. 6,000.
Rs.
Total fixed costs 4,500
Total variable cost 7,500
Total sales 15,000
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