DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, DECEMBER 2017.
First Semester
Retail Management
FINANCIAL AND MANAGEMENT ACCOUNTING
(Upto 2012 2013 Academic Year and 2013 Calendar Year)
Time Three hours Maximum 100 marks
SECTION A — 8 40 marks)
Answer any FIVE questions.
1. Mention the managerial uses of management accounting.
2. A Book-keeper having failed to agree the Trial Balance,
open a Suspense Account and transferred the difference
Rs. 1,700 to the credit of Suspense Account. The following
errors were later discovered. Give journal entries and
show the Suspense
Sales book was under cast by Rs. 2,000.
Purchase of Machinery for Rs. 3,000 was passed
through the Purchase book.
Goods sold to Ram for Rs. 45 was posted to his
account as Rs. 54.
Purchase Return Book was overcast by Rs. 200.
Total of Sales Book was carried forward as Rs. 1,222
instead of Rs. 1 ,122.
3. State the limitations of ratio analysis.
Sub. Code
14
DE-3098
2
Sp 1
4. What are the differences between fund flow analysis and
cash flow analysis?
5. Write short notes on Master Budget.
6. State the merits and demerits of Accounting rate of
Return Method.
7. What are accounting conventions? Explain them.
8. From the following ledger balances, draw a Trial Balance.
Rs.
Premises 20,000
Machinery 8,500
Bad debts 1,400
Capital 36,000
Debtors 30,000
Creditors 25,000
Cash 1,000
Discount received 5,000
Bank O.D. 1,20,000
Purchases 1,25,100
SECTION B — × 15 60 marks)
Answer any FOUR questions.
9. Discuss the scope of accounting.
10. Sharad, who is a cloth merchant, commenced his business
with the capital of Rs. 10,000 on 1st January, 2015. On
the same day he purchased furniture of Rs. 3,000. His
books are kept according to single entry system.
Following particulars are available.
Rs.
Sales (including cash sales Rs.7000) 17,000
Purchases (including cash purchases of Rs.4,000) 15,000
DE-3098
3
Sp 1
Rs.
Expenses paid in cash 700
Drawings by shared in cash 1,200
Salaries paid in cash 2,000
Bad debts 500
Sharad took cloth of Rs. 500 from his shop for his
personal use and gave Rs. 200 to his son out of the cash of
the firm, these transaction were not recorded in the
books. On 31.12.2015 debtors were Rs. 5,200, creditors
Rs.3600 and stock Rs. 6,500.
Prepare Profit and Loss Account, Balance Sheet, Cash
Account, Debtors, Account and Creditors Account for the
year 1988 from the above information.
11. Examine the analysis and interpretation of financial
statements.
12. From the Balance Sheet of M/S. Ganga and Yamuna on
1.1.15 and 31.12.15, Prepare Cash Flow Statement
Liabilities 1.1.15 31.12.15 Assets 1.1.15 31.12.15
Creditors 40,000 44,000 Cash 10,000 7,000
Mrs.
Yamuna
loan
25,000 Debtors 30,000 50,000
Loan from Stock 35,000 25,000
Indian Bank 40,000 50,000 Machinery 80,000 55,000
Capital 1,25,000 1,53,000 Land 75,000 1,10,000
2,30,000 2,47,000 2,30,000 2,47,000
During the year machine costing Rs. 10,000 (accumulated
depreciation Rs. 3,000) was sold for Rs. 5,000. The
provision for depreciation against machinery as on 1.1.15
was Rs. 25,000 and on 31.12.15 was Rs. 40,000. Net profit
for 2014 was Rs. 45,000.
DE-3098
4
Sp 1
13. Draw up a flexible budget for overhead expenses on the
basis of the following data and determine the overhead
rates at 80% and 90% plant capacity.
At 70% At 80% At 90%
Capacity Capacity Capacity
Rs. Rs. Rs.
Variable overheads 12,000
Indirect labour
Stores including spares 4,000
Semi-Variable overheads
Power
fixed, 70% variable) 20,000
Repairs and maintenance
fixed, 40% variable) 2,000
Fixed overheads
Depreciation 11,000
Insurance 3,000
Salaries 10,000
Total over heads 62,000
Estimated direct labour hours: 1,24,000 hrs.
14. What do you understand by capital budgeting? Examine
its need and importance.
15. What are the advantages and disadvantages of budgetary
control?