DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, DECEMBER 2017.
Second Semester
FINANCIAL AND MANAGEMENT ACCOUNTING
(Upto 2012-13 Academic Year 2013 Calendar Year)
Time Three hours Maximum 100 marks
SECTION A — × 8 40 marks)
Answer any FIVE questions.
1. What are accounting principles? Also explain the rules of
accounting equation.
2. What do you understand by subsidiary books? Describe
the objects of preparing such books.
3. What is the significance of accounting ratios in the
analysis of Financial Statements?
4. Describe the various methods which are used to analyse
the financial statements.
5. Explain the meaning of cash flow statement. What are its
managerial uses and limitations?
6. Discuss the advantages and limitations of budgetary
control.
7. What is capital budgeting? Explain its need and
importance.
Sub. Code
21
DE-2834
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WS 20
8. From the details given below, find out
Current assets
Current liabilities
Liquid assets
Stock
Current ratio 2.5
Liquid ratio 1.5
Working capital Rs.1,20,000.
SECTION B — × 15 60 marks)
Answer any FOUR questions.
9. Define Management Accounting. Distinguish
Management Accounting from Financial Accounting.
10. What are the advantages of double entry system? How it
differs from single entry system?
11. From the following balance sheet extracts, compute trend
percentages taking 2003 as the base year

2003 2004 2005
Inventory 2,30,000 2,20,000 2,00,000
Debtors 90,000 1,00,000 1,00,000
Cash 60,000 90,000 10,000
B/P 2,80,000 2,40,000 2,00,000
12. From the following data, you are required to prepare a
balance sheet
Working capital Rs. 75,000
Reserves and surplus Rs.1,00,000
Bank O/D Rs. 60,000
Current ratio 1.75 1
Liquid ratio 1.15 1
Fixed assets to proprietors funds 0.75
DE-2834
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WS 20
13. What are the various sources and uses of funds? How a
fund flow statement is prepared?
14. Prepare a flexible budget for production at 80% and 100%
activity on the basis of the following information
Production at 50%
Capacity 5000 units
Raw materials Rs. 80 per unit
Direct Labour Rs. 50 per unit
Direct expenses Rs.15 per unit
Factory expenses Rs. 50,000 fixed)
Administration expenses Rs. 60,000 variable).
15. Each of the following projects requires a cash outlay of
Rs.10,000. You are required to suggest which project
should be accepted if the standard pay-back period is
5 years.
Cash inflows

Year Project X Project Y Project Z
1 2,500 4,000 1,000
2 2,500 3,000 2,000
3 2,500 2,000 3,000
4 2,500 1,000 4,000
5 2,500
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