Code No: R6-15-MCA R6

M.C.A. I Semester Supplimentary Examinations, Jul/Aug 2008

ACCOUNTING AND FINANCIAL MANAGEMENT
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Time: 3 hours Max Marks: 60
Answer any FIVE Questions
All Questions carry equal marks
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1. Discuss briefly the basic accounting concepts and fundamental accounting assump-
tions?
2. From the following Trial Balances of Vivek and company prepare Trading and Profit
& loss Account for the year ending 31st March 2003. Also prepare balance sheet as
on that date.

Trial Balance
Debit items Rs. Credit items Rs.
Electricity 12,000 Interest 14,000
Land 1, 40,000 Discount 6,000
Interest 16,000 Sales 8, 00,000
Purchases 2, 00,000 Returns 10,000
Wages 50,000 Sundry creditors 60,000
Cash 1, 00,000 Capital 3, 02,000
Opening stock 20,000 Bills payable 15,000
Rent 24,000
Office expenses 30,000
Building 4, 00,000
Salaries 90,000
Power, gas and water 30,000
Returns 20,000
Furniture 15,000
Sundry Debtors 60,000
.................... ....................
12,07,000 12,07,000
.................... ....................
Closing stock was valued at Rs.87,000.
3. Discuss the relationship between financial management and other disciplines?
4. (a) Define and distinguish between ‘fund flow’ and ‘cash flow’ of a firm?
(b) What significant inferences can be drawn from fund flow?
5. “Cost accounting is a system of foresight and not postmortem examination; it turns
losses into profits, speeds up activities and eliminates wastes.” Discuss in detail
this statement.

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Code No: R6-15-MCA R6
6. “Cost-volume profit analysis is primarily used in guiding decisions yet to be made”.
Explain.

7. The standard labour composition and the actual labour composition engaged during
the month are given below:
Skilled Semi-skilled Unskilled
Standard number of workers
In a group 30 10 10
Standard wage rate
(Rupees per hour) 10 6 4
Actual number of workers
Employed during the month
In the group 24 15 12
Actual wage rate per hour (Rs) 12 5 4
During the month of 400 working hours, the group produced 19,200 standard hours
of work.
Required: Calculations showing Wage rate variances, Labour efficiency variance
and Total Labour cost variance.

8. Explain the various documents used for data collection.

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