DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, MAY 2017.
First Semester
FINANCIAL AND MANAGEMENT ACCOUNTING
(Upto 2012-13 Academic Year and 2013 Calendar Year)
Time Three hours Maximum 100 marks
PART A — 8 40 marks)
Answer any FIVE questions.
1. Explain the accounts concepts in detail.
2. Differentiate between single entry and double entry.
3. List out the differences between cash flow and fund flow
analysis.
4. Define budget. What are the essentials of a budget?
5. What is meant by payback period? What are its merits?
6. What are the factors carried influence capital
expenditure decisions?
7. A project cost Rs. 5,00,000 and yields annually a profit of
Rs. 80,000 after depreciation at 12% p.a. but before tax of
50%. Calculate pay back period.
8. Differentiate between journal entry and ledger.
Sub. Code
14
DE-796
2
Ws19
PART B — 15 60 marks)
Answer any FOUR questions.
9. What do you understand by accounting ratio. Explain the
importance of ratio analysis.
10. Explain the various functions of management accounting.
11. Briefly explain the various methods of evaluating capital
expenditure proposals.
12. Compute funds from operations from the following.
Income statement
Rs. Rs.
To salaries 10,000 By G/P Ltd 2,000
To Rent 4,000 By Rent 10,000
To Depreciation 2,000 By Interest 8,000
To preliminary expenses 4,000 By Net loss 10,000
To loss on sale of furniture 10,000
30,000 30,000
13. Manian Ltd is considering expansion of its production
facilities it has collected details about two models of a
machine model costs Rs. 5,40,000 and has an economic
life of 6 years where as model B costs Rs. 1,40,000 and
has a life of 7 years.
The following are the estimates of sales and cost per year.
Machine Machine
Cost A B
Materials 40,000 40,000
Labour 20,000 80,000
Overheads (excluding depreciation) 50,000 50,000
Sales 2,50,000 2,50,000
Depreciation is to be charged on straight line basis. Tax
rate may be taken at 30% calculate the ARR on the basis
of original investment for both machines. Which machine
do you recommend?
DE-796
3
Ws19
14. Explain the advantages and limitations of management
accounting.
15. The following is the revenue statement of Hind traders
limited for the year ended 31st March 2009.
Rs.
Sales 5,00,000
Less Cost of goods sold 3,00,000
Gross profit 2,00,000
Less Operating expenses 1,20,000
Operating profit 80,000
Add Non Operating income 12,000
92,000
Less Non Operating expenses 4,000
Net profit 88,000
Less Tax 50% 44,000
Net profit after tax 44,000
Calculate
Gross profit ratio
Operating ratio
Operating profit ratio and
Net profit ratio.