DAVV MBA 1 SEM ACCOUNT FOR MANAGERS DEC 2015QUESTION PAPERS


 
 

Dec 2015
Master of Business Administration (MBA) Examination
I Semester
Accounting for Managers
Time : 3 Hours ] [ Max. Marks : 80


Note : Attempt any two questions from Section A. Each question, of Section A carries 10 marks. Attempt any three questions from Section B. Each question of Section B carries 20 marks.
Section A
1. What do you mean by Accounting Concept ? Explain different Accounting Concept.
2. What do you mean by Trial Balance? Explain the objectives of preparing Trial Balance. Do you agree that "Tallying of Trial Balance ensures the accuracy of accounting" ?
3. Write short notes on any two of the following :
(a) Petty Cash Book.
(b) Cost Control and Cost Reduction.
(c) Relationship of Management, Accounting with Financial Accounting and Cost Accounting.

4. "So many Managerial Decisions are taken on the basis of Accounting
Information." Explain the statement and elaborate the different Managerial Decision criteria which are based on Accounting Information.


( Section B )


5. A company, which closes its books every year on 31st December, purchased on 1st January, 2001 certain machinery for Rs. 60,000 Additional machinery was purchased on 1st October, 2002 for Rs. 20,000 and on 1st July, 2003 for Rs. 10,000. Out of machinery which was purchased on 1st January, 2001 the company sold 1/3rd part on 1st April, 2003 for Rs. 6,000. Calculate depreciation at 10%per annum by Reducing Balance Method and prepare Machinery Account from year 2001 to 2003.


6. From the following Trial Balance of Mr. Y, prepare Trading arid Profit and Loss Account for the year ended 31st March, 2012 and Balance Sheet as on that date :
Particulars Amount (Re.) Amount (Rs.)
Capital 2,70,000
Drawings 42,600 -
Furniture 57,000
Stock 87,600
Purchase and Sales 6,21,720 7,14,360
Returns 12,600 17,460
Salaries 26,400
Rent 7,200
Rates and Taxes 15,000
Bank Overdraft 19,500
Bad Debts 10,320
Sundry Debtors 1,92,000
Cash in Hand 2,880
Sundry Creditors 60,000
Provision for Bad Debts - 6,000
Bills Receivable 14,400
Bills Payable 10,800
Discount 3,600
Land 12,000
11,01,720 11,01,720
Consider the following adjustments :
(1) Stock on 31st March, 2012 was valued at Rs. 2,10,000.
(2) Provide for doubtful debts at 5% on Sundry Debtors.
(3) Rent due for payment was Rs. 2,000.
(4) Taxes paid in advance Rs. 5,000.
(5) Depreciate furniture at 10%.


(6) Provide for provision for discount on debtors @ 5% and discount on creditors @ 2.5%.
7. From the following transactions prepare a Three Column Cash Book and balance it :
2012
March 1 Cash in Hand Rs. 1,327, Bank Overdraft Rs. 75.
March 2 Deposited into Bank Rs. 250.
March 5 Received from Mr. Jaikishan Rs. 88 and allowed discount Rs. 2.
March 6 Goods purchased in cash Rs. 1,120.
March 8 Paid Ramlal by cheque Rs. 47 and received discount Rs. 3.
March 11 Cash Sales Rs. 75.
March 17 Withdrawn from Bank Rs. 45.
March 19 Received a cheque from Roshan Rs. 75.
March 21 Paid to Dipesh by cheque Rs. 80 and discount availed Rs. 5.
March 25 Received a cheque from Monica Rs. 63 and allowed discount Rs. 2.
March 27 Deposited Roshan's cheque in the bank.
March 29 Sent to the bank Rs. 160 including Monica's cheque.
March 31 Paid wages by cheque Rs. 15.
March 31 Paid postage in cash Rs. 30.
March 31 Withdrawn from Bank Rs. 50.

8. Moon Industries produces a forged product "Moonbeam" after it passes through three distinct processes. The following information is obtained from the Cost Accounts for the month ending 31st December, 2012.
Processes
I II III
Items Total Rs. Rs. Rs.
Direct Materials 7,542 2,600 1,980 2,962
Direct Wages 9,000 2,000 3,000 4,000
Production Overheads 9,000
1000 units at Rs. 3 each were introduced in Process I. There was no stock of materials, work-in-progress and finished goods at the beginning or at the end of the period. The output of each process passes direct to the next process and finally to finished stock. Production overheads are recovered at 100 percent of Direct Wages. The following additional data are obtained :
Process Output % of Normal Value of Scrap
in units Loss to inputs per unit
Process I 950 5% Rs. 2
Process II 840 10% Rs. 4
Process III 750 15% Rs. 5
Prepare Process Cost Accounts and Abnormal Wastage Account. There are two plants under the same management. The management wishes to merge these two plants and to run them as one integrated plant. The details are as follow : •
Particulars Plant I Plant II
Capacity in Operation 60% 100%
Sales (Rs.) 1,20,000 3,00,000
Variable Cost (Rs.) 90,000 2,20,000
Fixed Cost (Rs.) 25,000 40,000
You are required to state :
(a) What would be the capacity of merged plant to be operated for Break-Even?
(b) What would be the profitability on working at 75% of the integrated capacity?
(c) What turnover would give an overall. Profit of Rs. 90,000?