DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, MAY 2017.
Second Semester
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. What are the basic accounting concepts?
2. What is trial balance? What are the differences between
trial balance and balance sheet?
3. Define ratio. Explain the pros and cons of ratio analysis.
4. What is fund flow statement? Explain the steps involved
in the preparation of fund flow statement.
5. What is budgetary control? Briefly explain the different
types of budgets.
6. What are the methods of evaluation of capital investment
decisions?
7. Explain the uses of different types of financial
statements.
8. What is capital budgeting? Explain its need and
importance.
Sub. Code
21
DE-531
2
Sp 1
SECTION B — × 15 60 marks)
Answer any FOUR questions.
9. Define management accounting. Explain the functions
and limitations of management accounting.
10. Explain the various ratios that will be useful for testing
the liquidity, profitability and solvency of a company.
11. From the following, calculate: G/P ratio, N/P ratio
Return on total assets stock turnover current
ratio Network to debt working capital trun over
ratio
Rs.
Sales 25,20,000
Cost of sales 19,20,000
Net profit 3,60,000
Inventory 8,00,000
Other current assets 7,60,000
Fixed assets 14,40,000
Net worth 15,00,000
Debt 9,00,000
Current liabilities 6,00,000
12. Mr. X started business on 1st January 2012 with a capital
of Rs. 25,000. He immediately bought furniture for
Rs. 6,000. During the year he borrowed Rs. 15,000 from
his wife and introduced a further capital of his own
amounting to Rs. 9,500. He had withdrawn Rs. 900 at the
end of each month for family expenses. On 31.12.2012,
his position was as follows:
Cash Rs. 600, cash at bank Rs. 7,800, debtrors Rs. 14,400,
Stock Rs. 20,400, B/R Rs. 4,800, Creditors Rs. 1500 and
rent due Rs. 450.
Depreciate furniture 10%. find out the profit or loss
made by X during 20012.
DE-531
3
Sp 1
13. From the following balances, prepare a fund flow
statement.
2011 2012 2011 2012
Rs. Rs. Rs. Rs.
Liabilities: Assets
Share
capital
4,00,000 5,75,000Machinery 75,000 1,00,000
Trade
creditors
1,06,000 70,000Stock 1,21,000 1,36,000
P L a/c 14,000 31,000 Debtors 1,81,000 1,70,000
Cash 1,43,000 2,70,000
5,20,000 6,76,000 5,20,000 6,76,000
14. Prepare a flexible budget for production at 80% and 100%
activity on the basis of the following information:
Rs.
Production at 50% capacity 5000 units
Raw materials 80 per unit
Direct labour 50 per unit
Direct expenses 15 per unit
Factory expenses Rs. 50,000 fixed)
Administration expenses Rs. 60,000 variable)
15. Evaluate the following two projects on pay back period
criterion and on post pay back profitability criterion:
Project Project
X Y
Rs. Rs.
Original investment 35,000 15,000
Annual cash in flows 15,000 7,500
Economic life of project 7 years 3 years