Oriental College of Management, Bhopal

MBA I Sem-Mid Sem

Quantitative Methods (CP-102)
Total Time: 2 hr.
Attempt all questions:

Max. Marks: 50
Section A (8 Marks Each)

Q1. What is the generally accepted accounting principle (GAAP)?

Q2. On 1/1/2002, Mr. A purchased a Machine at a cost of rs 80,000. Its life was estimated to be
20 years with a residual value of Rs. 10000. Calculate the amount of depreciation to be charged
at the end of each year.
Q3. Trial balance is a conclusive proof of accuracy of account. Justify

Section-B (13 Marks Each)

Q4. From the following Trial Balance of ABC and co., prepare a trading and profit & loss a/c for
the year ended31-12-2001 and prepare balance sheet.
Particulars
Capital
Drawings
Purchase & sales
Sales & Purchases Return
Stock (1-1-2001)
Wages
Building
Freight & carriage
Trade expenses
Advertisement
Interest
Taxes & Insurance
Debtors & Creditors
Bills Receivable & Bills Payable
Cash at bank
Cash in hand
Salaries

Debit
760
8900
280
1200
800
22000
2000
200
240

Credit
29000
15000
450

350
130
6500
1500
1200
190
800
46700

1200
700

Total
46700
Additional information (a) Stock as on 31-12-2001 was value at 1500
(b) Prepaid insurance-Rs 40, outstanding salaries Rs 200 & outstanding taxes Rs 130.
(c) Depreciate building at 2% per annum.
Q5. Infosys Ltd. has a current ratio of 2.5 & liquid ratio of 1.5. If working capital is Rs 1,00,000
ascertain current assets and inventory.