Enroll. No.

_________

MARWADI UNIVERSITY

Faculty of Management Studies

[ MBA ]
SEM: 1 MU FINAL EXAM/ MU FINAL REMEDIAL June 2023
_________________________________________________________________________
Subject: - (Accounting For Managers) (04MB0101) Date:-13/06/2023
Total Marks:-100 Time: - 3 HOURS
Instructions:
1. All Questions are Compulsory.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
4. Do not write/sign/indication/tick mark anything other than Enroll No. at a specific place on the question paper.

Question: 1.

(a) Objective MCQ [10]

(i) Trial Balance is the process of _______ the financial information.

I. Recording III. Summarizing
II. Classifying IV. None of the above

(ii) Balance Sheet can be prepared at ________?

I. At any point of time III. Both I and II
II. Only at the end of period IV. None of the above

(iii) There are _____ Conventions given in GAAP?

I. 11 III. 4
II. 10 IV. 6

(iv) Accounting Standard 1 Define

I. Cash flow III. Inventory
II. Fund flow IV. None of the above

(v) The process of closing Ledger Accounts is called?

I. Marshaling III. Posting
II. Recording IV. Balancing

(vi) Which of the following is a direction in trend analysis?

I. Constant Trend III. Both I & II
II. Upward Trend IV. None of these

(vii) Dividend Paid to Equity Shareholder is what type of Cash flow?

I. Operating III. Investing
II. Financing IV. None of these

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(viii) The amount of depreciation is constant in which of the following method?

I. Straight Line Method III. Annuity Method
II. Written Down Method IV. None of these

(ix) Which of the following analysis is otherwise known as Dynamic Analysis?

I. Horizontal Analysis III. Trend Analysis
II. Vertical Analysis IV. None of these

(x) Which of the following is a Ratio under Solvency Ratio?

I. Gross Profit Ratio III. Proprietary Ratio
II. Current Ratio IV. None of these

(b) Short Questions (answer in one sentence: No. of Questions 10) [10]

1. Bad Debt, Provision for Doubtful Debt and Provision for Discount. How to be adjusted?
2. Based on which Accounting concept all relevant information must be stated in financial statement.
3. Explain Earnings Per Share.
4. What Accounting Standard AS 3 Define?
5. Current Ratio, Explain.
6. Define Depreciation.
7. Common Size statement determines the percentage of Factory Cost with a base to ______.
8. Depreciation = ___________.
9. Vertical Balance Sheet of a company prepared under Section which of Companies Act.
10. Upon which Tangible asset depreciation is not charged?

Question: 2.

(a) Explain the Accounting Concepts and Conventions in detail. [08]

(b) Find Current Ratio, Liquid Ratio and Absolute Liquid Ratio. [08]

Current assets ₹ 5, 50,000

Current liabilities ₹ 2, 75,000
Inventory ₹ 1, 10,000
Prepaid expenses ₹ 22,000
Bank Overdraft ₹ 11,000
Absolute Liquid Assets for the year is ₹ 2, 00,000

OR

(b) Show the Format of Balance Sheet and Income Statement of A Company in Vertical Form. [08]

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Question: 3.

(a) Journalize the following transactions and post them into necessary ledger accounts. [08]

May 1 – Srihari started his business with cash of ₹ 70,000, Building ₹ 2, 00,000, Furniture ₹
20,000 and a Computer ₹ 25,000.
May 2 – Deposited cash into bank ₹80,000.
May 3 – Purchase furniture ₹ 10,000 through a cheque.
May 4 – Paid staff salary ₹30,000 by cheque.
May 5 - Cheque received ₹ 7,000 as Commission.
May 8 – Sold goods to RanMay ₹ 2,00,000. Half cash received immediately.
May 12 – Purchased goods for ₹ 1,00,000 from Mehul on credit.
May 15 – Paid to Mehul with full settlement of ₹ 97,500.

(b) Discuss about different types of personal accounts in the Accounting with examples. [04]

(c) X purchased machinery on 1st January 2005 for ₹ 180000. Its installation costs ₹ 20,000 and scrap
value is ₹ 30,000. X charge depreciation @ 10% p.a. Under SLM and closed his accounts on 31st
December each year. Prepare machinery account for 2 years [04]

OR

(a) Calculate Gross Profit Ratio, Operating Profit Ratio And Net Profit Ratio from the data given as: [08]

COGS ₹ 4,00,000, Gross profit 25% on COGS, Operating Expenses ₹ 50,000 And Non-
Operating Expenses ₹12,000, operating Revenues ₹ 20,000, Non- operating Revenues ₹
45,000.

(b) Explain Various Turnover Ratios in Detail with Formula to Calculate the Ratios. [04]

(c) How SLM different from WDV method of charging depreciation? Explain With 5 points. [04]

Question: 4.

(a) From the following information of WINGS Wire ltd. Find out the following ratios. [08]

1) Stock turnover Ratio

2) Current Ratio
3) Liquid Ratio
4) Net Profit Ratio
5) Debt-Equity Ratio
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Liabilities Amount Assets Amount

Equity Share Capital 4,00,000 Land 3,00,000
General Reserve 2,00,000 Building 2,00,000
P&L (Cr. Balance) 2,00,000 Investment 1,50,000
10% Debenture 3,00,000 Stock 1,90,000
Creditors 1,00,000 Debtor 1,75,000
Bills Payable 50,000 Prepaid expenses 1,00,000
Provision for Provided Fund 50,000 Advance Income 95,000
Bank Overdraft 30,000 Bills Receivables 60,000
Outstanding Expenses 20,000 Cash at bank 80,000
13,50,000 13,50,000

Additional Information:
i. Return (Net Profit) For the year is ₹1,25,000
ii. Net Sales is ₹ 6,00,000
iii. G.P Ratio is 35%
iv. Opening Stock is 2.5 times of closing stock.
v. Closing Stock is Valued at ₹ 25,000

(b) From the following ledger Balances Prepare a Trial Balance as on 31.03.2023 [08]

Sl No Particulars Amount
1 Purchase 2,00,000
2 Sales 5,43,200
3 Wages 25,000
4 Carriage Inward 15,000
5 Salary 70,000
6 Advertisement 32,000
7 Outstanding Rent 50,000
8 Accrued Dividend 19,000
9 Commission paid 4,500
10 Electricity bill 1,800
11 Building 4,15,000
12 Land 3,00,000
13 Carriage outward 4,000
14 Bank loan 5,00,000
15 Creditors 1,20,000
16 Debtors 87,000
17 Cash in hand 94,000
18 Cash at Bank 1,24,900
19 Bills payable 80,000
20 Bills Receivable 36,000
21 Machine 2,15,000
22 Capital 3,50,000

OR

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(a) From the following Information, prepare a Comparative Income Statement. [08]

Particulars 31.12.2021 31.12.2022

Sales 3,00,000 3,75,000
Cost of goods sold 1,50,000 2,25,000
Administrative and selling expenses 52,500 75,000
Other incomes 7,500 15,000
Non -operating Incomes 10,000 14,000
Tax 40% 50%

(b) From the following Information Prepare a Trend Percentage analysis. [08]

Year Sales Cost Profit

2015 3,00,000 2,00,000 2,00,000
2016 4,00,000 3,00,000 2,25,000
2017 3,70,000 2,80,000 2,85,000
2018 4,20,000 3,20,000 3,00,000
2019 5,10,000 4,00,000 3,10,000

Question: 5.

(a) Prepare a Common Size Balance Sheet as on 31.03.2020 for Global Accounts Ltd. [08]

Particulars Balance as on 31.03.2022

Share Capital 4,25,000
Reserve & Surplus 25,000
Debenture 3,00,000
Bank Loan 1,00,000
Unsecured loan 50,000
Long-term Borrowings 65,000
Current Liabilities 82,000
Provisions 18,000
TOTAL LIABILITIES 10,65,000
Fixed Assets 4,00,000
Investments 2,00,000
Government Bonds 1,25,000
Current Assets 85,000
Loans and Advances 1,00,000
Miscellaneous expenditure 1,30,000
Profit & Loss Account (Dr.) 25,000
TOTAL ASSETS 10,65,000

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(b) Current Assets = ₹ 3, 00,000, Inventory = ₹ 60,000 and Current Liabilities are 2/3 of Current Assets. Find
Net Working Capital and also Gross Working Capital.

(c) State from the following, the Nature of account: Personal, Real or Nominal [04]

(i) Machinery
(ii) Bank Balance
(iii) Koyal Traders
(iv) Commission Accrued
(v) Drawings
(vi) Sales
(vii) Purchase
(viii) Bank Loan

OR

(a) Show the Format with Contents of the Balance Sheet and Income Statement of A Company in Vertical
Form Prescribed Under Schedule III of Companies Act 2013. [08]

(b) Explain Different Activities of Cash Flows with Examples of inflows and outflows in each activity. [04]

(c) Net Sale is ₹ 6, 25,000, Gross Profit is 38%. Opening Stock given ₹ 42,000 and Closing stock is 3/5th of
Opening Stock. Find Inventory Turnover Ratio and Also Inventory Conversion Period, if the number of
working days is 360.

Question: 6.

(a) Explain the following Ratios with details on how to calculate it, Impact on Financial performance. [16]

(i) G.P Ratio

(ii) Operating Profit ratio
(iii) Operating ratio
(iv) Net Profit ratio

OR

(a) Prepare Trading, Profit and loss account and balance sheet from the following information of Amulya
Pvt. Ltd. for the year ending 31.03.2021. [16]

Adjust the followings while preparing final account.

(a) Stock on 31st march 2021 Rs 14000.

(b) Outstanding wages and prepaid salary Rs 1200 & 2800.

(c) Depreciation @ 5% p.a. on all fixed assets.

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(d) Write off bad debt Rs 1500.

(e) Insurance premium paid in advance Rs 400.

(f) Provide 6% interest on capital.

(g) Provisions for doubtful debt on debtors 8%.

Particulars Debit Amount Particulars Credit Amount

Stock 1.4.2020 50000 Capital 320000

Furniture 16000 Creditors 80000

Building 160000 Purchase return 2000

Debtor 60000 Commission 1000

Drawings 20000 Sales 455600

Plant & machine 120000 Bad debt recovered 1400

Addition to plant 1.10.20 20000

Wages 24000

Salaries 40000

Bad debts 2000

Purchase 240000

Electricity charge 16800

Sales return 1800

Insurance premium 3000

Cash in hand 6400

Cash at bank 80000

8,60,000 8,60,000

---Best of Luck---

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– Bloom’S Taxonomy Report –

Sub: Accounting For Managers

Sem. 1
Branch: MBA

Que. Paper weightage as per Bloom’s Taxonomy

LEVEL % of weightage Question No. Marks of
Que.

Remember/Knowledge 15% Q.1 (a) – All, Q.3 (b), Q.2 30

OR (b), Q.2 (a)
Understand 12% Q.1 (b) – All, Q.5 (c), Q.3 22
OR (b) (c)
Apply 18% Q.5 OR (a)(b), Q.3 (a)(c) OR 32
(a)
Analyze 18% Q.6 (a) OR, Q.4 (a)(b) 32
Evaluate 20% Q.6 (a), Q.5 OR (c), Q.4 OR 36
(a)(b)
Higher order 17% Q.5 (a)(b), Q.2 (b) 20
Thinking/ Creative

Chart/Graph of Bloom’s Taxonomy

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