DISTANCE EDUCATION
M.C.A./M.C.A. (Lateral) DEGREE EXAMINATION,
DECEMBER 2017.
Fourth Semester
ACCOUNTING AND FINANCIAL MANAGEMENT
(2005 to 2010 Calendar Year)
Time Three hours Maximum 100 marks
Answer any FIVE questions.
All questions carry equal marks.
1. Explain different types of errors with appropriate
examples.
2. Viswa's trial balance appeared as follows on 31st
December 2013.
Rs.
Capital 92,000
Creditors 18,852
Bills payable 6,930
Sales 1,21,850
Reserve for doubtful debts 1,320
Interest 340
Buildings 70,000
Motor trucks 12,000
Furniture 1,640
Debtors 15,600
Sub. Code
42
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Rs.
Opening stock 15,040
Cash in hand 988
Cash at bank 14,534
Bills receivable 5,844
Purchases 85,522
Carriage inwards 1,291
Carriage outwards 800
General expenses 6,085
Insurance 783
Bad debts 613
Audit fees 400
Travelling expenses 325
Discounts 620
Sales returns 285
Investments 8,922
Prepare the trading and profit and loss account for the
year ending 31st. December 2013 and a balance sheet as
on that date after making the following adjustments.
Stock on 31.12.2013 was valued at Rs. 15,500
Depreciate motor trucks by 10% and furniture by

Write off a further Rs. 140 as bad debts and
maintain reserve at on debtors
Insurance prepaid Rs. 150
Interest on investment outstanding Rs. 120.
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3. From the following details, prepare statement of
proprietary fund with as many details as possible
Stock velocity 6
Capital turnover ratio 2
Fixed assets turnover ratio 4
Gross profit turnover ratio 20%
Debtors velocity 2 months
Creditors velocity 73 days.
Gross profit was Rs. 60,000. Reserves and surplus
Rs. 20,000. Closing stock was Rs. 5,000 in excess of
opening stock.
4. Two components A and B are consumed as follows
Normal usage 100 units per week each
Minimum usage 50 units per week each
Maximum usage 150 units per week each
Re-order quantity A 400 units; B 600 units
Re-order period A 6 to 8 weeks B 3 to 5 weeks.
Calculate for each component
Reorder level
Minimum level
Maximum level
Average stock level.
5. You are given the following data for the year 2012 of the
company.
Variable cost Rs. 6,00,000
Fixed cost Rs. 3,00,000
Net profit Rs. 1,00,000
Sales Rs. 10,00,000
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Find
P/V ratio
B.E.P
Profit when sales amounted to Rs. 12,00,000
Sales required to earn a profit of Rs. 2,00,000.
6. With the following data for a 60% activity, prepare a
budget for production at 80% and 100% activity.
Production at 60% activity 600 units.
Materials Rs. 100 per unit
Labour Rs. 40 per unit
Expenses Rs. 10 per unit
Factory expenses Rs. 40,000 fixed)
Administration expenses Rs. 30,000 fixed)
7. What do you mean by ABC analysis? Explain its
advantages.
8. What is fund flow statement? Explain the procedure for
preparing a fund flow statement.
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