Get Answers of Following Questions Here: MB0041 - Financial and Management Accounting

Get Answers of following Questions here
Master of Business Administration- MBA Semester 1 Spring 2015

MB0041 Financial and Management Accounting
Q1. Analyze the following transaction under traditional approach
18.1.2011 Received a cheque from a customer, Sanjay at 5 p.m. Rs.20,000
19.1.2011 Paid Ramu by cheque Rs.1,50,000
20.1.2011 Paid salary Rs. 30,000
20.1.2011 Paid rent by cheque Rs. 8,000
21.1.2011 Goods withdrawn for personal use Rs. 5,000
25.1.2011 Paid an advance to suppliers of goods Rs. 1,00,000
26.1.2011 Received an advance from customers Rs. 3,00,000
31.1.2011 Paid interest on loan Rs. 5,000
31.1.2011 Paid instalment of loan Rs. 25,000
31.1.2011 Interest allowed by bank Rs. 8,000
Answer:
Sl. Accounts
Nature of
Affects
No. Involved
Account
Cash a/c
Real
Cash (cheque) is coming in
Sanjay a/c
Personal
Sanjay is the giver
Debit/
Credit
Debit
Credit
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Q2. The trial balance of Nilgiris Co Ltd., as taken on 31st December, 2002 did not tally and the
difference was carried to suspense account. The following errors were detected subsequently. a)
Sales book total for November was under cast by Rs. 1200.
b) Purchase of new equipment costing Rs. 9475 has been posted to Purchases a/c.
c) Discount received Rs.1250 and discount allowed Rs. 850 in September 2002 have been posted
to wrong sides of discount account.
d) A cheque received from Mr. Longford for Rs. 1500 for goods sold to him on credit earlier,
though entered correctly in the cash book has been posted in his account as Rs. 1050.
e) Stocks worth Rs. 255 taken for use by Mr Dayananda, the Managing Director, have been
entered in sales day book.
f) While carrying forward, the total in Returns Inwards Book has been taken as Rs. 674 instead
of Rs. 647.
g) An amount paid to cashier, Mr. Ramachandra, Rs. 775 as salary for the month of November
has been debited to his personal account as Rs. 757.
Pass journal entries and draw up the suspense account.
Answer: Nilgiris Co Ltd.
Date
Particulars
31-12-2002 Suspense account
LF
Dr
Debit Rs. Credit Rs.

1,200
To Sales account
(Being under casting of sales
bookrectified)
1,200

Q3. 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
Answer:
Ledger accounts:
Furniture and fittings a/c
Dr.
Cr.
Particulars
Rs.
Particulars
Rs.
To bal b/d
10000 By Depreciation
1000
By bal c/d
9000
Total 10000 Total 10000
To bal b/d
9000
Q4. Compute trend ratios and comment on the financial performance of Infosys Technologies
Ltd. from the following extract of its income statements of five years.
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
Answer: 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

Revenue is increasing every year from 2006-07 to 20010-11.Operatin profit has also increased.
Q5. Give the meaning of cash flow analysis and put down the objectives of cash flow analysis.
Explain the preparation of cash flow statement.
Answer: 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.
Q6.Write the assumptions of marginal costing. Differentiate between absorption costing and
marginal costing.
Answer: 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 dont. Get complete Answers on www.smuHelp.com

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Master of Business Administration- MBA Semester 1 Spring 2015

Get complete Answers on www.smuHelp.com

Debit Rs. Credit Rs.

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PAT from ordinary activities 6,835 6,218 5,988 4,659 3,856

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