6

ADL- 03

[No. of Printed

Also calculate:
(i) Gross

Pages - 6}
Roll No

ADL-03

Profit ratio
MBA 3 Vrs, MBA 2 Vrs & PG Diplomas

(H) Net Profit

Ratio
END TERM EXAMINATIONS:

JUNE. 2006

(iii) Liquid Ratio

ACCOUNTING
(iv) Fixed Assets Turnover

Ratio

Time:
(v) Current

3 Hours

Maximum Marks: 60

(25)

Ratio
~1.

FOR MANAGERS

Ii.','

Note: (i) Be brief and to the point.

(ii) Part

'A' and 'C' are compulsory.

(iii) Answer any two question-s from Part 'B'.

(iv) Part 'A' duly answered is to be attached to the
answer sheet.
..

-",

PART - A

..

(Objective - Compulsory)
Tick Mark (,() the most appropriate

answer

1.

cheques,

When

there

balance

are

unpresented

as per cash

book will be

favourable
than

that of the pass book. (Fill in the blank).

(a) Lers
(b) More
..-11,

(c) Same
(d) None of the above

(1)

p.T.a.
(194)

(194)

ADL-03
5.

Which one of the following is an example of an

intangibleasset:
(a) Preliminaryexpenses
(b) StocK
(c) Investments
(1)

(d) Trademarks
PART - B
. (Answer any Two Questions.)

.,'

6.

Define Accounting. Explain the primaryobjectives of

accounting.
(15)

7.

What is depreciation? What are the causes of

depreciation? What is the irTlportanceof providing
depreciation?
(15)

8.

Explainthe various categories into whichtransactions

can be classified. Also state the rules of debit and
credit in this regard with suitable examples.

9.

(15)

Write short notes on any two of the following:

(a) Cash Flow Statement
(b) BusinessEntity Concept
P.T.O.
(194)

.,
ADL-03
2.

ADL-03

Ioutward
4300
273280
Return
90720
273280

Depreciation charge will be heavy in the earlier years

under:
Cash
at
bank
Electricity
General
expenses
Motor
lorry
Drawings
Office
salaries
Wages
Capital
Rent. rates
and
insurance

3190
29250
1900
8000
7560
4800
12160
19000

(a) Straight Line Method

(b) Diminishing Balance Method.
(c) Sinking Fund Method
(d) None of the above
3.

(1)

Another name for quick ratio is :

(a) Current ratio
(b) Proprietary ratio

.,

............

(c) Acid test ratio

',-

(d) Debt-equity ratio

4.

(1)

The principle that requires that the same accounting

methods be used from one accounting period to the
next is :

You are given the following additional information:

(a) Stock on 31st March 1991 was valued at Rs.18110.

(b) Rates paid in advance on 31st March 1991 were
Rs.610.
(c) Plant and Machinery is to be depreciated by 10%
and motor lorry by 20% p.a .

. (a) Consistency concept

(d) After extraction of the trial balance, it was decided

(b) Conservatism concept

to write off Rs. 1500 in respect of an amount due

from an insolvent debtor.

(c) Cost concept

(d) Materiality concept

(1 )

p.T.a.
~.~~

..,

..

AOt-03

(c) Suspense

Account

(d) Gross Profit Ratio .

(e) Written Down Value Methodo!

I?epreciation
(1.5)

PART -(}

(Case Study - Compulsory)

10.

Read the Case Study- - and answer

the questions
.

given

in the context
From .tile following

trial balance

extracted

books of Jugal Kishore on 31 st March

trading

and profit and loss account

31sfMarch

from the

1991. prepare

for the year ended

1991 and a balance sbeet as on that date:

Trial Balance as on 31st March 1991

Sales

Debit (Rs.)

Credit (Rs.)

162010

-Plant and Machinery

55000

Debtors and Creditors

16200

Purchases

86090

Bad debts

5600

Discount allowed and received

5260

Stock on 1st April 1~90

16000

Carriage inwards

3270
(194)

12500

3750
\