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Seat No.: Enrolment
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (PART TIME)- SEMESTER EXAMINATION WINTER 2018
Subject Code: 3519901 Date:24/12/2018
Subject Name: Accounting For Managers
Time: 10.30A.M. to 1.30P.M. Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 Which financial statement provides the information about
the financial performance of a firm?
What is Accounting Standards?
What do you understand by the term Trial Balance?
Explain the Straight Line Method of depreciation.
Give the components of Financial Statement.
Mention the types of account.
Explain Trend Analysis.
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Q.2
Define Accounting and describe the Accounting Process. 07
What do you understand by the term GAAP? Explain any two
GAAP's.
07
OR
Journalise the following transactions:
April 01 Mr. Sachin started business with Rs.40,00,000/=.
April 05 Paid into the bank Rs.5,00,000/=.
April 10 Purchased goods from Mr. Rohit worth Rs.
for cash.
April 14 Paid Rs.50,000/= by cheque for purchase of
machinery.
April 18 Paid Rs.7,500/= for installation of machinery.
April 24 Sold goods to Mr. Ganguly of the list price of
Rs.10,00,000/= at a trade discount of 5%.
April 30 Mr. Ganguly returned 10% of the goods sold to him
as they were not as per his specifications.
07
Q.3 Explain LIFo, FIFO and WAM methods of inventory
valuation.
07
On 1st April, 2014 a firm purchased machinery worth
Rs.15,00,000/=. On 1st October, 2016 it bought additional
machinery worth Rs.3,00,000 and spent Rs.30,00/=on its
installation. The accounts are closed each year on 31st March.
Assuming the annual depreciation to be show the
machinery account for 4 years under Written Down Value
method..
07
OR
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Q.3 "Ratio analysis is one of the important tools for financial
statement analysis". Explain giving the relevance of ratio
analysis using some of the important ratios.
07
From the following details, prepare balance sheet with as much
details as possible:
Stock Turnover ratio 6 times
Net Worth Turnover ratio 2 times
Fixed Assets Turnover ratio 4 times
Gross Profit Margin 20%
Creditors Velocity 73 days
Debtors Velocity 73 days
Gross Profit Rs.60,000/=
Closing stock is Rs.5,000/= in excess of Opening stock
Reserve Surplus Rs.20,000/=
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Q.4 Give in detail the format of Corporate Profit Loss
Statement (Vertical form)
07
Give in detail the format of Corporate Balance Sheet (Vertical
form)
07
OR
Q.4 Discuss the objectives of IFRS and also its advantages. 07
From the following balance, you are required to prepare a Trial
Balance.
Particulars Amt.
Capital 25,000
Salary 6,000
Sales 47,000
Miscellaneous Expenses 1,000
Wages 7,800
Freight 400
Purchases 26,000
Return Inwards 500
Discount received 200
Commission paid 600
Postage 1,200
Accounts Receivable 30,000
Return Outwards 1,000
Accounts Payable 20,000
Plant Machinery 13,000
Insurance 400
Opening Stock 9,000
General Reserve 6,800
Cash Bank 4,100
Closing stock 6,000
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Q.5
The Balance Sheets of ABC Ltd as on 31/03/2015 and
31/03/2016 are as under:
Balance Sheet
Assets 31/03/2015
(in Rs.)
31/03/2016
(in Rs.)
Fixed Assets 46,700 83,000
Stock 11,000 13,000
Debtors 18,000 19,500
Cash 2,000 2,500
Preliminary Expenses 1,000 500
78,700 1,18,500
Liabilities
Equity Share Capital 45,000 65,000
General Reserve 5,000 7,500
P&L A/c 10,000 15,000
11% Debentures 10,000 20,000
Creditors 8,700 11,000
78,700 1,18,500
Additional information:
Depreciation on Fixed Assets for the year 2015-16 was
Rs.11,700/=.
You are required to calculate the Cash Flow from Operating
activities for ABC Ltd.
07
Also, find out the Cash Flow from Investing activities and
Cash Flow from Financing activities and Net increase or
decrease in cash or cash equivalent.
07
OR
Q.5 The following balances were extracted from the books of Mr.
R. Kumar as on 31/03/2014:
Particulars Dr. Cr.
Capital 1,94,000
Purchases Sales 4,14,000 5,51,400
Debtors Creditors 72,500 38,600
Opening stock 41,200
Purchase return Sales return 1,200 1,000
Bank 39,200
Drawings 46,000
Motor Van expenses 5,100
Motor Van 62,500
Rent 7,500
Salary 81,200
Reserve for Doubtful Debt 2,500
Bad Debt 2,300
General expenses 11,200
Discount allowed 10,500
Discount received 9,300
Insurance 2,400
7,96,800 7,96,800
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The following adjustments are required to be incorporated:
Salary and Rent accrued but not paid Rs.8,200/= and
Rs.1,500/= respectively.
Insurance paid in advance Rs.400/=
Maintain reserve for doubtful debt at Rs.3,000/=
Motor Van to be depreciated at 10%
Closing stock valued at Rs.50,400/=
You are required to prepare Trading Account and Profit Loss
Account for the year ended 31/03/2014.
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Also, prepare Balance Sheet as on 31/03/2014.
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