Service charges as Rs. 150 per assignment.
24 x 7 hours
PROGRAM - MBA
SEMESTER 1
SUBJECT CODE & NAME - MB0041
FINANCIAL AND MANAGEMENT ACCOUNTING
1. Give the classification of
Accounts according to accounting equation approach with its meaning and
examples. Compare the traditional approach with modern approach of accounting
equation approach. Analyze the transaction under traditional approach.
a. 20.1.2011 Paid salary Rs.
30,000
b. 20.1.2011 Paid rent by cheque
Rs. 8,000
c. 21.1.2011 Goods withdrawn for
personal use Rs. 5,000
d. 25.1.2011 Paid an advance to
suppliers of goods Rs. 1,00,000
e. 26.1.2011 Received an advance
from customers Rs. 3,00,000
f. 31.1.2011 Paid interest on loan
Rs. 5,000
g. 31.1.2011 Paid instalment of
loan Rs. 25,000
h. 31.1.2011 Interest allowed by
bank Rs. 8,000
Classification of accounting equation approach with meaning and examples
SI. No.
|
Types of Accounts
|
Meaning
|
Examples
|
1
|
Asset account
|
Deals with tangible and intangible real assets
|
Land account, building account, plant and machinery account,
cash account, goodwill account, trademark account, patents account,
investments account
|
2
|
Liabilities account
|
Deals with the financial obligations of the firm on outsiders
|
Long term loans, debentures, bank loans, trade creditors,
outstanding expenses
|
2 The following
trial balance was
extracted from the
books of Chetan,
a small businessman. Do you think
it is correct? If not, rewrite it in the correct form.
Debits
|
Rs.
|
Credits
|
Rs.
|
Stock
|
8250
|
Capital
|
10000
|
Purchases
|
12750
|
Sales
|
15900
|
Returns outwards
|
700
|
Returns inwards
|
1590
|
Discount received
|
800
|
Discount allowed
|
800
|
Wages and salaries
|
2500
|
Scooty
|
1750
|
Rent and rates
|
1850
|
Carriage charges
|
700
|
Sundry debtors
|
7600
|
Sundry creditors
|
7250
|
Bank Overdraft
|
2450
|
Bills payable
|
690
|
Answer:
The correct form of
Trial Balance is as below:
Debits
|
Rs.
|
Credits
|
Rs.
|
Stock
|
8250
|
Capital
|
10000
|
Purchases
|
12750
|
Sales
|
15900
|
Returns inwards
|
1590
|
Returns outwards
|
700
|
Service charges as Rs. 150 per assignment.
3. From the given trial balance
draft an Adjusted Trial Balance.
Trial
Balance as on 31.03.2011
Debit
balances
|
Rs.
|
Credit
balances
|
Rs.
|
Furniture and Fittings
|
10000
|
Bank Over Draft
|
16000
|
Buildings
|
500000
|
Capital Account
|
400000
|
Sales Returns
|
1000
|
Purchase Returns
|
4000
|
Bad Debts
|
2000
|
Sundry Creditors
|
30000
|
Sundry Debtors
|
25000
|
Commission
|
5000
|
Purchases
|
90000
|
Sales
|
235000
|
Advertising
|
20000
|
||
Cash
|
10000
|
||
Taxes and Insurance
|
5000
|
||
General Expenses
|
7000
|
||
Salaries
|
20000
|
||
TOTAL
|
690000
|
TOTAL
|
690000
|
Adjustments:
1. Charge depreciation at 10% on
Buildings and Furniture and fittings.
2. Write off further bad debts
1000
3. Taxes and Insurance prepaid
2000
4. Outstanding salaries 5000
5. Commission received in
advance1000
Preparation of ledger accounts
Preparation of trial balance
Answer:
Ledger
accounts
Furniture and fittings a/c
|
|||
Dr.
|
Cr.
|
||
Particulars
|
Rs.
|
Particulars
|
Rs.
|
To bal b/d
|
10000
|
By Depreciation
By bal c/d |
1000
9000 |
Total
|
10000
|
||
To bal b/d
|
9000
|
Total
|
10000
|
4. Compute trend ratios
and comment on
the financial performance
of Infosys Technologies Ltd. from
the following extract of its income statements of five years.
(in Rs.
Crore)
Particulars
|
2010-11
|
2009-10
|
2008-09
|
2007-08
|
2006-07
|
Revenue
|
27,501
|
22,742
|
21,693
|
16,692
|
13,893
|
Operating Profit
(PBIDT) |
8,968
|
7,861
|
7,195
|
5,238
|
4,391
|
PAT from ordinary
activities |
6,835
|
6,218
|
5,988
|
4,659
|
3,856
|
(Source: Infosys Technologies Ltd.
– Annual Report)
Answer:
Infosys Technologies Ltd.
Trend Analysis
Particulars
|
2010-11
|
2009-10
|
2008-09
|
2007-08
|
2006-07
|
Revenue
|
27,501
|
22,742
|
21,693
|
16,692
|
13,893
|
Operating Profit
(PBIDT) |
8,968
|
7,861
|
7,195
|
5,238
|
4,391
|
PAT from ordinary
activities |
6,835
|
6,218
|
5,988
|
4,659
|
3,856
|
5. Give the
meaning of cash
flow analysis and
put down the
objectives of cash
flow analysis. Explain the preparation of cash flow statement.
Meaning of Cash Flow Analysis
Cash flow analysis is
an important tool of financial analysis. It is the process of understanding the
change in position with respect to
cash in the current year and
the reasons responsible
for such a
change. Incidentally, the analysis
also helps us
to understand whether
the investing and
financing decision taken by the company during the year are appropriate
are not. Cash flow analysis
is presented in the form
of a statement.
Such a statement is called a cash
flow statement.
6. Write the assumptions of
marginal costing. Differentiate between absorption costing and marginal
costing.
Assumptions of marginal costing (all 7 points)
Marginal costing is
based on the following assumptions:
1. Segregation of cost into fixed and variable
The whole principle
of marginal costing is based on the idea
that some costs vary with
production while some
costs don’t. Therefore,
it is assumed that
a clear bifurcation
between fixed and
variable costs is possible.
Even if some
costs do not
entirely qualify as
fixed or as variable, it is still possible to separate
such mixed cost with respect to the amount,
which remains fixed
and the
Service charges as Rs. 150 per assignment.
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