|
PAPER CODE: MCA 112
|
PAPER ID: 7302
|
|
|
|
Section-A
|
|
Short Answer Questions
|
Marks (2*10=20)
|
|
|
|
(Answer are expected to be in 50-70 words)
|
|
Attempt all questions
|
|
|
|
1. Define Accounting. State its functions.
|
|
2. Explain the following concepts:
|
|
(a) Going concern concept
|
|
(b) Separate entity concept
|
|
(c) Consistency concept
|
|
3. Explain the meaning and types of personal account with examples.
|
|
4. Distinguish between trading and profit and loss account and balance sheet.
|
|
5. State the meaning and characteristics of depreciation.
|
|
6. Briefly describe the significance of ratio analysis?
|
|
7. Distinguish between funds flow statement and Cash flow statement.
|
|
8. Derive the formulae for calculating Debt-Equity ratio.
|
|
9. Pass journal entries of:
|
|
(a) Sunil started business with cash of Rs. 20,000
|
|
(b) Sold goods for cash Rs. 2500 for Rs. 3,000
|
|
10. What is an accounting equation? Derive it.
|
|
|
|
Section-B
|
|
Medium Answer Questions
|
Marks (10*3=30)
|
|
|
|
(Answer are expected to be in 100-200 words)
|
|
Attempt any three questions
|
|
|
|
1. With the help of the following Trial balance, prepare a Trading and Profit and
Los account for the year ending 31st march, 2010 and Balance Sheet as on that date.
|
|
Particulars
|
Amount (Dr.)
|
Particulars
|
Amount (Cr.)
|
|
Opening Stock
|
32,000
|
Capital
|
2,00,000
|
|
Purchases
|
1,75,000
|
Loan @ 10%
|
50,000
|
|
Wages
|
16,000
|
Creditors
|
30,000
|
|
Carriage and freight
|
8,000
|
Discount received
|
5,000
|
|
Salaries and allowances
|
16,000
|
Sales
|
2,60,000
|
|
Rent and rates
|
14,000
|
|
|
|
Bad debts
|
5,000
|
|
|
|
Advertisement
|
7,000
|
|
|
|
Stationery and postage
|
3,000
|
|
|
|
Telephone and mobile expenses
|
5,000
|
|
|
|
Office expenses
|
4,000
|
|
|
|
Cash and bank balance
|
12,000
|
|
|
|
Debtors
|
42,000
|
|
|
|
Furniture
|
20,000
|
|
|
|
Delivery van
|
30,000
|
|
|
|
Building
|
1,56,000
|
|
|
|
Total
|
5,45,000
|
|
5,45,000
|
|
Adjustments:
|
|
1. Closing stock Rs. 41,000.
|
|
2. Proprietor withdrawn goods of Rs. 4,000 for personal use and the goods worth
Rs. 2,000 were distributed as free samples.
|
|
3. Salaries are Rs. 1,500 per month and rent and rates are Rs. 1,000 per month.
|
|
4. Advertisement is to be written off in two years.
|
|
5. Provide Rs. 2,000 for Bad debts and 5% provision for bad debts
|
|
6. Provide 10% interest on capital and drawings.
|
|
7. Provide 10% depreciation on furniture and delivery van and 10% appreciation on
building.
|
|
2. (a) Calculate (i) Return on shareholders’ investment and (ii) Return on equity
shareholders’ funds:
|
|
10% Preference share capital
|
1,00,000
|
|
Equity share capital
|
5,00,000
|
|
Reserves and surplus
|
3,00,000
|
|
Net profit after tax
|
2,70,000
|
|
|
(b) Information regarding X ltd. For the year 2010 is as under: Profit before tax
Rs. 24,46,000; Tax rate 60%; Proposed Dividend 20%; capital consist of 9% preference
shares of Rs. 10,00,000; Equity shares Rs. 30,00,000 (each share of Rs. 100); Reserves
on 1-1-2010 Rs. 22,00,000.
|
Calculate:
(i) Earning per share;
(ii) Price earning Ratio;
(iii) Dividend per share;
(iv) Dividend yield ratio.
The current market price of equity share is Rs. 200 each.
|
|
3. Differentiate between accounting and book-keeping. Also discuss the objectives
of accounting.
|
|
4. Explain the meaning of depreciation and the factors determining the amount of
depreciation.
|
|
5. "Agreement of trial balance is not a conclusive evidence of accuracy of books
of accounts." Explain this statement.
|
|
|
|
|
|
Section-C
|
|
Long Answer Questions
|
Marks (10*5=50)
|
|
|
|
(Answer are expected to be in 300-500 words)
|
|
Attempt all Questions Each Question has internal Choice.
|
|
|
|
1. Justify the statement that Accounting Equation (A= L+ C) holds true under all
circumstances. Give at least two illustrations.
|
|
OR
|
|
What are accounting standards and why are they needed? Also give a brief description
of the procedure for issuing accounting standards in India.
|
|
|
|
2. on 1st January 2000, a machine was purchased by a trader of Rs. 20,000. On 1st
July 2001, additions were made to the extent of Rs. 4,000. On 1st April 2002, further
a machine costing Rs. 2560 was purchased. On June 30, 2003, a machine the original
value of which was Rs. 3200 on 1st January 2000 was sold for Rs. 2400. The trader
closes his books on 31st December each year. Prepare machinery account for four
years from 2000 to 2003, if depreciation is charged at 10% p.a as per Written Down
Value Method.
|
|
OR
|
|
"Depreciation is a process of allocation, not of valuation". Comment.
|
|
|
3. (a) Total Sales Rs. 2,60,000; sales return Rs. 10,000; cost of net goods sold
Rs. 2,00,000. Calculate Gross Profit Ratio.
(b) Cash sales Rs. 2, 00,000; Credit Sales 90% of Total Sales; Gross Profit Ratio
25%; Indirect Expenses Rs. 20,000. Find out Net Profit Ratio.
(c) Cost of Goods Sold Rs. 2, 30,000; Average Inventory Rs. 1, 00,000. Calculate
Inventory Turnover Ratio.
(d) Total Sales Rs. 5, 00,000; Cash Sales Rs. 1, 00,000; Sales Return Rs. 35,000;
Trade Debtors Rs. 45,000; Bills Receivable Rs. 10,000 and Provision for Bad debts
Rs. 5,000. Calculate Average collection Period.
|
|
OR
|
|
"Ratios are meaningless if detached from the details from which they were derived".
Comment and brig out the limitations of Ratio Analysis.
|
|
|
|
4. From the following Balance Sheet of X Ltd. as at 31st December, 2009 & 2010,
Prepare Funds Flow Statement.
|
|
Particulars
|
Amount (Rs) 2009
|
Amount (Rs) 2010
|
Particulars
|
Amount (Rs) 2009
|
Amount (Rs) 2010
|
|
Share capital
|
61,000
|
74,000
|
Plant
|
38,000
|
43,000
|
|
Reserves
|
13,000
|
15,500
|
Building
|
50,950
|
48,000
|
|
Profit and Loss a/c
|
8,600
|
8,800
|
Stock
|
25,500
|
18,800
|
|
Creditors
|
28,000
|
24,000
|
Debtors
|
22,000
|
16,200
|
|
Bank loan
|
18,000
|
-
|
Cash
|
150
|
180
|
|
Provision for tax
|
8,000
|
8,500
|
Bank
|
-
|
2,100
|
|
|
|
|
goodwill
|
-
|
2,520
|
|
|
|
|
|
|
|
|
Total
|
1,36,600
|
1,30,800
|
|
1,36,600
|
1,30,800
|
|
Additional Information:
1. Dividend paid was Rs. 6,000.
2. Provision of Rs. 9,000 for tax was made during the year.
3. Rs. 3,600 was written off as depreciation on plant.
|
|
OR
|
|
Define and explain the term “Working Capital”. How Gross Working Capital does differs
from Net working Capital. Also state the elements which are to be included in both
these types.
|
|
|
|
5. Profit and Loss account of Sunita Ltd. is as follows; find out cash flows from
operations.
|
|
Particulars
|
Amount
|
Particulars
|
Amount
|
|
To opening stock
|
2,50,000
|
By sales
|
10,00,000
|
|
To purchases
|
5,00,000
|
By closing stock
|
2,00,000
|
|
To gross Profit
|
4,50,000
|
|
|
|
Total
|
12,00,000
|
Total
|
12,00,000
|
|
To operating expenses
|
3,00,000
|
By Gross Profit b/d
|
4,50,000
|
|
4,50,000
|
1,50,000
|
|
|
|
Total
|
4,50,000
|
Total
|
4,50,000
|
|
Additional Information:
1. Debtors decreased by Rs. 30,000 during the year.
2. Prepaid expenses increased by Rs. 5,000 during the year.
3. Trade creditors decreased by Rs. 15,000 during the year.
4. Outstanding expenses increased by Rs. 3,000 during the year.
5. Operating expenses include Rs. 25,000 being depreciation.
|
|
OR
|
|
"The statement of sources and Application for fund gives a clear answer to the question
of what has become of net profit earned and what has become of the funds obtained
from all other sources". Explain and illustrate as how a fund statement can depict
the financial position of a company.
|
|
|