Fall 2012

Master of Business Administration- MBA Semester 1 MB0041 Financial And Management Accounting - 4 Credits (Book ID: B1624) Assignment Set - 1 (60 Marks) Note: Each question carries 10 Marks. Answer all the questions.
1. Explain the process involved in accounting. 2. The salaries paid in 2004 is Rs. 5,00,000; Salaries outstanding is Rs. 20,000; Salaries paid in advance for 2004 is Rs. 30,000. What is the actual salary expenditure for 2004? Which accounting principle is involved in this and explain that principle. 3. Find the value of the following: a. If the total assets are Rs. 87,000 and the liabilities are Rs. 47,000, find out the amount of capital. b. If the capital of proprietor is Rs. 4,00,000 and the total assets are Rs. 6,00,000, what is the amount of liabilities to outsiders? c. If creditors are Rs. 56,000, bank overdraft is Rs.1,00,000, and outstanding expenses are Rs. 8,000, what is the total amount of assets? d. Fixed assets are Rs.70,000 and current assets are Rs.1,00,000 and the creditors are Rs.30,000. What is capital? 4. Enter the following transactions in the single column cash book of Gopichand. March, 2003 1st. Commenced business with cash 2nd. Bought goods for cash 3rd. Sold goods for cash 4th. Goods purchased from Ravi Kumar 10th. Paid to Ravi Kumar 14th. Cash sales 18th. Purchased furniture for office 22nd. Paid wages 20000 5000 4000 10000 7000 8000 4000 500

Fall 2012 25th. Paid rent 30th. Received commission 30th. Withdrew for personal purpose Cash balance 170000 Hint: Goods Purchased from Ravi Kumar is a credit purchase. 5. Find out the missing figures. Office stationery Opening stock Purchased during the year Closing stock Consumed for the year 5000 25000 3000 ? Consumables 8000 ? 6000 24000 600 4000 1000

Hint : Office stationery consumed for the year =27000 Consumables purchased during the year = 22000 6. Explain the tools of management accounting.

Master of Business Administration- MBA Semester 1

Fall 2012

MB0041 Financial and Management Accounting- 4 Credits (Book ID: B1624) Assignment Set - 2 (60 Marks) Note: Each question carries 10 Marks. Answer all the questions.
1. 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 Revenue Operating Profit (PBIDT) PAT from ordinary activities 2010-11 27,501 8,968 6,835 2009-10 22,742 7,861 6,218 2008-09 21,693 7,195 5,988 2007-08 16,692 5,238 4,659 2006-07 13,893 4,391 3,856

(Source: Infosys Technologies Ltd. Annual Report) Hint: The Revenue and Operating Profit (PBIDT) have almost doubled in four years. The

PAT from ordinary activities has increased by 77.26% in the same period. 2. What is fund flow analysis? What are the objectives of analysing flow of fund? From the following balance sheets of Joy Ltd., prepare a cash flow statement under indirect method.
Liabilities Equity share capital 8% redeemable pref. share capital General reserve Profit and loss Proposed dividend Sundry creditors Bills payable Provision for taxation Total Assets Goodwill Land and building Plant Sundry debtors Stock Bills receivable 1,15,000 2,00,000 80,000 1,60,000 77,000 20,000 90,000 1,70,000 2,00,000 2,00,000 1,09,000 30,000 2005 3,00,000 1,50,000 40,000 30,000 42,000 55,000 20,000 40,000 6,77,000 2006 4,00,000 1,00,000 70,000 48,000 50,000 83,000 16,000 50,000 8,17,000

Fall 2012
Cash Bank Total 15,000 10,000 6,77,000 10,000 8,000 8,17,000

Additional Information a) Depreciation of Rs.10,000 and Rs.20,000 has been changed on plant and building during the current year. b) An interim dividend of Rs.20,000 has been paid during the current year. c) Rs.35,000 was paid during the current year for income tax. Hint: Cash flow from operating activities Rs.1,25,000; Cash flow from investing activities (Rs.1,20,000); Cash flow from financing activities (Rs.12,000). 3. Calculate the cost of raw materials purchased from the following data: Opening stock of raw materials Rs.10,000 Closing stock of raw materials Rs.15,000 Expenses on purchases Rs.5,000 Direct wages Rs.50, 000 Prime costs Rs.1, 00,000 Hint: Cost of Raw Materials purchased is Rs.50,000 4. Distinguish between absorption costing and marginal costing 5. The Anchor Company Ltd. produces most of its electrical parts in its own plant. The company is at present considering the feasibility of buying a part from an outside supplier for Rs.4.50 per part. If this is done, monthly costs would increase by Rs.1,000. The part under consideration is manufactured in department 1 along with numerous other parts. On account of discontinuing the production of this part, department 1 would have somewhat reduced operations. The average monthly usage production of this part is 20,000 units. The costs of producing this part on per unit basis are as follows.
Material Labour (half-hour) Fixed overheads Total costs Rs. 1.80 2.40 0.80 5.00

Should the company produce this part or should it buy from an outside supplier?

Fall 2012 Hint:

Differential costs Favouring making of the parts 7,000 per month 0.35 er unit

6. Explain the essential features of budgetary control.