M.B.A. DEGREE EXAMINATION, NOVEMBER 2017
Health Service Management
BASICS OF ACCOUNTING
(2016 onwards)
Time 3 Hours Maximum 75 Marks
Part A (10 x 2 20)
Answer all questions.
1. State the ruler for debiting and crediting?
2. What is a ledger?
3. What is a trial balance?
4. What is inflation accounting?
5. What is cost sheet?
6. What is allocation?
7. What is contribution?
8. What is three column as cash book?
9. What is purchase return?
10. What is carriage inward?
Sub. Code
12
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Part B x 5 25)
Answer all questions.
11. What are the various branches of accounting?
Or
Prepare a bank reconciliation statement from the
following data as on 31-12-2016.
Balance as per cash book Rs. 12,500
Cheques issued but not presented for payment
Rs. 900.
Cheques deposited in bank but not collected
Rs. 1,200.
Bank paid insurance premium Rs. 500.
Direct deposit by a customer Rs. 800.
Interest on investment collected by bank
Rs. 200.
Bank charges Rs. 100.
12. What are the advantages of ratio analysis?
Or
Calculate the earnings per share from the following
data
Net profit before taxes Rs. 1,00,000.
Taxation at 50% of net profit
10% preference share capital (Rs. 10 each)
Rs. 1,00,000. Equity share capital (Rs. 10 each)
Rs. 1,00,000.
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13. What are the differences between cash flow and
funds flow.
Or
From the following, calculate cash from operations
Particulars December 31st
2015 2016
Debtors 50,000 47,000
Bills receivable 10,000 12,500
Creditors 20,000 25,000
Bills payable 8,000 6,000
Outstanding expenses 1,000 1,200
Prepaid expenses 800 700
Accured income 600 750
Income received in advance 300 250
Profit made during the year 1,30,000
14. Explain cost sheet and cost centre by giving suitable
examples.
Or
Prepare a proforma cost sheet. (Assume the figure
by yourself) or answer it as XXX.
15. What are the usefulness of standard costing?
Or
Explain break-even analysis.
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Part C 10 30)
Answer all questions.
16. Explain various accounting conventions.
Or
Prepare trading, P L a/c and balance sheet as on
31st December 2016.
Rs.
Credit balances capital 72,000
Creditors 17,440
Bills payable 5,054
Sales 1,56,364
Loan 24,000
Debit balances
Debtors 7,770
Salaries 8,000
Discount 2,000
Postage 546
Bad debts 574
Interest 2,590
Insurance 834
Machinery 20,000
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Stock 19,890
Purchases 1,24,184
Wages 8,600
Buildings 47,560
Furniture 32,310
Value of goods on hand on 31-12-16 Rs. 28,600.
17. Calculate the current assets, current liabilities and
stock turnover ratio from the following
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
Or
How is marginal costing useful in decision making?
18. Explain application of accounting for human
resources.
Or
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From the following particulars find B.E.P in units.
Variable cost per unit Rs. 15.
Selling price per unit Rs. 24.
Fixed cost Rs. 54,000.
What should be the selling price per unit. If the
company wants to bring down B.E.P to 9,000 units?
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