M.B.A. DEGREE EXAMINATION, APRIL 2016
FINANCIAL AND MANAGEMENT ACCOUNTING
(Common for
(2012 onwards)
Time 3 Hours Maximum 75 Marks
Part A 3 15)
Answer all the questions.
1. What is meant by double entry system? What are its
advantages?
2. What is trial balance? Why it is prepared?
3. Discuss briefly the different methods of financial
statement analysis.
4. What is cash flow statement? What are its uses?
5. Explain the importance of capital budgeting.
Part B 10 50)
Answer all the questions, choosing either or
All questions carry equal marks.
6. Define the terms journal and ledger. What are the
differences between journal and ledger?
Or
Distinguish between financial accounting and
management accounting.
Sub. Code
641103/632103/
622103/652103/
643103
RW-10973
2
Sp 6
7. From the following information, prepare a trial
balance.
Cash 12,000, Capital 10,00,000, Purchases
12,00,000, B/P 2,20,000, Opening stock 3,50,000,
Debtors 5,00,000, Creditors 2,40,000, Wages
1,60,000, Plant 6,00,000, Sales 20,02,000,
Furniture 1,50,000, O/D 10,000, B/R 2,00,000,
Rent 1,00,000, Salaries 2,00,000.
Or
Prepare trading account for the year ending
31.3.2010.
Opening stock 4,00,000, Purchases 43,00,000,
Carriage in 2,60,000, Wages 1,20,000, Credit
sales 72,00,000, Cash sales 18,00,000, Sales
returns 15,80,000, Purchase returns 50,000,
Closing stock 5,00,000.
8. Calculate CA, CL, liquid assets and stock.
Current ratio 2.8
Quick ratio 1.5
Working capital Rs. 1,62,000.
Or
Discuss the different types of ratios used to judge
liquidity, profitability and solvency.
9. From the following, prepare the schedule of changes
in working capital.
Liabilities 2007 2008 Assets 2007 2008
Creditors 98,000 75,000 Stock 1,10,000 80,000
Wages due 2,000 5,000 Debtors 30,000 36,000
Capital 4,00,000 4,20,000 Cash 5,000 4,000
Plant 3,55,000 3,80,000
5,00,000 5,00,000 5,00,000 5,00,000
Or
Discuss the steps involved in the preparation of
fund flow statement.
RW-10973
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Sp 6
10. Prepare a production budget from the following
information (estimated).
Product Opening stock Sales Closing stock
X 2,000 10,000 3,000
Y 3,000 15,000 5,000
Z 4,000 13,000 3,000
Find out the total production in units.
Or
Evaluate the following two projects on pay back
period criterion.
Project A
Rs.
Project B
Rs.
Original investment 35,000 15,000
Annual cash inflows 15,000 7,500
Economic life of project 7 years 3 years
Part C 10 10)
11. Case Study Compulsory questions.
The following are the data obtained from the income
statements of X Ltd for the 6 years ending 2009. You are
required to calculate trend percentages, taking 2004 as
the base year and given your comments.
(Rs.
Particulars 2004 2005 2006 2007 2008 2009
Sales 300 340 420 480 520 600
Cost of goods sold 180 204 256 287 300 330
Office expenses 40 42 45 50 55 60
Selling expenses 20 25 30 40 50 60
Net profit loss 60 69 89 103 115 150