mba-1-sem-accounting-for-managers-march-2011

mba-1-sem-accounting-for-managers-march-2011

March 2011

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.         Explain the need of depreciation. What factors should be considered for determining amount of depreciation?

2.         (a)        Describe objects of preparing a Trial Balance.

(b)        Explain the reasons with suitable examples of difference between Cash Book and Bank Pass Book.

3. Write notes on the following :

(a)        Direct Cost

(b)        Batch Cost .

(c)        Abnormal Loss

(d)       Joint Cost.

4. How can you establish that accounting is an information system ? Discuss the nature of accounting information.

(Section B)

5. From the following particulars taken on 31-12-2009, you are required to prepare a Bank Reconciliation Statement to reconcile the bank balance shown in the Cash Book :

(a)        Balance as per Pass Book on 31-12-2009, OD Rs. 1,027.

(b)        Four cheques drawn on 31st December but not cleared till January following : Rs. 12, Rs. 1,021, Rs. 98, Rs. 113.

(c)        Interest on 0/D not entered in Cash Book Rs. 51.

(d)       Three cheques received on 30th December and entered in the Cash Book but not lodged in bank for collection till 3rd January next Rs. 1,160, Rs. 2,100 and Rs. 2,080.

(e)        Cost of cheque book Rs. 1.50 entered twice erroneously in cash book in November.

(0 A.B/R for Rs. 250 due on 29-12-2009 was passed to the bank for collection on 28-12-2009 and was entered in cash book forth

with whereas the proceeds were credited in the pass book only in January following.

(g)        Chamber of Commerce subscription Rs. 10 paid by bank on 1-12-2009 had not been entered in the cash book.   .

(h)        Bank charges of Rs. 5 had been debited in the pass book twice.

6. The following T. B. is extracted from the books of a merchant on 31-12- 2009 :

                                                                Rs.                                                                         Rs.

Furniture & Fittings                               640            Capital                                             12500

Motor Vehicle                                      6250            Provision for Bad Debts                     200

Buildings                                              7500            Su. Creditors                                     2500

Bad Debts                                              125            Sales                                                15450

Su. Debtors                                          3800            Bank Overdraft                                 2850

Opening Stock                                     3460            Purchase Return                                  125

Purchases                                             5475            Commission                                        375

Sales Return                                           200

Advertising                                            450

Interest on Bank Overdraft                   118

Cash                                                       650

Taxes and Insurance                            1250

General Expenses                                   782

Salaries                                                 3300

                                                             3400                                                                      3400

Adjustments : (1) Closing Stock was Rs. 3,250 (Market price Rs. 3,400 (2) Depreciate Buildings @ 5%, Furniture & Fittings @ 10% and Motor Vehicle @ 20% (3) Rs. 85 is due for interest on Bank Overdraft (4) Insurance amounting to Rs. 100 is prepaid (5) 1/3 of Commission is unearned (6) Write off a farther sum of Rs. 100 as bad debts and provide 10% provision for bad debts.

7.         (a) PN Ratio of a firm is 40%. He want to increase his profit by Rs. 60,000. Calculate the amount of sales to be increased.

(b Given : Variable Cost Rs. 15 P U., Fixed Cost Rs. 1,08,000, Selling Price Rs. 20. What should be the selling price per unit, if the B. E. P is, brought down to 12,000 units.

8.         In a brass foundry, the standard mixture consists of 60% of copper and 40% of zinc, the standard loss is 30%. Standards. mix are : Copper 60 kg @ Rs. 5 per kg

Zinc 40 kg @ Rs. 10 per kg

The actual mixture were :

Copper 80 kg @ Rs. 4.50 per kg

Zinc 70 kg @ Rs. 8 per kg

Actual production 115 kg.

Calculate material variances.

9.         Following was the expenditure on a contract for Rs. 12,00,000 commenced in January 2009:

Rs.                                                       Rs.

Material                                   2,40,000 Wages                                  3,28,000

Plant                                        40,000 Overheads                               17,200

Work Uncertified                    8,000

Cash received on account of the contract on 31-12-2009 was ,         Rs.

4,80,000 being 80% of the work certified. The value of material in hand was Rs. 12,000. The plant had undergone 20% depreciation. Prepare Contract A/c.