Master of Business Administration - MBA Semester 1 Subject Code Subject Name 4 Credits (Book ID: B1130) Assignment Set-

1 (60 Marks) MB0041 Financial and Management Accounting

Note: Each question carries 10 Marks. Answer all the questions.

Q.1 Assure you have just started a Mobile store. You sell mobile sets and currencies of Airtel, Vodaphone, Reliance and BSNL. Take five transactions and prepare a position statement after every transaction. Did you firm earn profit or incurred loss at the end? Make a small comment on your financial position at the end. [10 Marks] Q.2a. List the accounting standards issued by ICAI. [5 Marks] 2b. Write short notes of IFRS. [5 Marks] Q.3 Prepare a Three-column Cash Book of M/s Thuglak & Co. from The following particulars: [10 Marks] 20X1 Jan 1. Cash in hand Rs. 50,000, Bank Overdraft Rs. 20,000

2. Paid into bank Rs. 10,000

3. Bought goods from Hari for Rs, 200 for each

4. Bought goods for Rs. 2,000 paid cheque for them, discount allowed 1%

5. Sold goods to Mohan for each Rs. 1.175

6. Received a cheque from Shyam to whom goods were sold for Rs. 800.Discount allowed 12.5%

7. Shyam s cheque deposited into bank

8. Purchased an old typewriter for Rs. 200 , Spent Rs. 50 on its repairs

9. Bank notified that Shyam s cheque has been returned dishonored and debited the account in respect of charges Rs. 10

10. Received a money order Rs. 25 from Hari

11. Shyam settled his account by means of a cheque for Rs. 820, Rs. 20 being for interest charged.

12. Withdrew from the bank Rs. 10,000

18. Discounted a B/E for Rs. 1,000 at 1% through bank

20. Honored our own acceptance by cheque Rs. 5,000

22. Withdrew fir personal use Rs. 1,000

24. Paid tread expenses Rs. 2,000

25. Withdrew from bank for private expenses Rs. 1,500

26. Purchased machinery from Rajiv for 5,000 and paid him by means of a bank draft purchased for Rs. 5,005

27. Issued cheque to Ram Saran for cash purchased of furniture Rs. 1,575

28. Received a cheque for commission Rs. 500 from R.& Co. and deposited into bank

29. Ramesh who owned us Rs. 500 became bankrupt and paid us 50 paise in the rupee

30. Received payment of a loan of Rs. 5,000 and deposited Rs. 3,000 out of into bank

31. Paid rent to landlord Mohan

by cheque of Rs. 220

31. Interest allowed by bank Rs. 30

31. Half-yearly bank charges Rs. 50

Q.4 Choose an Indian Company of your choice that has adopted Balance Score Card and detail on it. [10 Marks]

Q.5 From the following data of Jagdish Company prepare (a) a statement of source and uses of working capital (funds) (b) a schedule of changes in working capital

Assets 2008

2007 Cash 1,26,000 1,14,000 Short-term investment 42,400 20,000 Debtors 60,000 50,000 Stock 38,000 28,000 Long term Investment 28,000 44,000 Machinery 2,00,000 1,40,000 Building 2,40,000 80,000 Land 14,000 14,000 Total 7,48,400 4,90,000 Liabilities and Equity

Accumulated depreciation 1,10,000 60,000 Creditors 40,000 30,000 Bills Payable 20,000 10,000 Secured loans 2,00,000 1,00,000 Share capital 2,20,000 1,60,000 Share premium 24,000 Nil Reserves and surplus 1,34,400 1,30,000 Total 7,48,400 4,90,000

Income statement Sales 2,40,000

Cost of goods sold 1,34,600 Gross Profit 1,05,200 Less Operating expenses: Depreciation Depreciation machinery 20,000 building 32,000

Other expenses 40,000

92,000 Net profit from operation

13,200 Gain on sale on long-term investment 4,800 Total 18,000 Loss on sale of machinery 2,000 Net Profit 16,000

Adjustments: 1) Machinery worth Rs.70000 was purchased and worth Rs.10000 was sold during the year [Accumulated depreciation on machinery is Rs.18000 after adjusting depreciation on machinery sold]. Proceeds from the sale of machinery were Rs.6000 2) Dividends paid during the year Rs.11600 [ 10 Marks]

Q.6 What is a cash budget? How it is useful in managerial decision making? [10 Marks]

Master of Business Administration - MBA Semester 1 Subject Code Subject Name 4 Credits (Book ID: B1130) Assignment Set- 2 (60 Marks) MB0041 Financial and Management Accounting

Note: Each question carries 10 Marks. Answer all the questions.

Q.1 Selected financial information about Vijay merchant company is given below:

2010 2009

Sales 69,000 43,000 Cost of Goods Sold 57,000 32,500 Debtors 7,200 3,000 Inventories 11,400 5,500 Cash 1,500 800 Other current assets 4,000 2,700 Current liabilities 16,000 11,000

Compute the current ratio, quick ratio, average debt collection period and inven tory turnover for 2009 and 2010. State whether there is a favorable or unfavorable change in liquidity from 2009 to 2010. At the beginning of 2009, the company had debtors of Rs..2500 and inventory of Rs.3000. [10 Marks] Q.2 Explain different methods of costing. Your answer should be studded with examples (preferably firm name and product) for each method of costing. [10 Marks] Q.3 State the importance of differentiating between the fixed costs and variable costs in managerial decision. [10 Marks]

Q.4 Following are the extracts from the trial balance of a firm as at 31st March 2009 Name of the account Dr Cr Sundry debtors 2,05,000

Bad debts 3,000

Additional Information 1) After preparing the trial balance, it is learnt that Mr.X a debtor has become insolvent and nothing could be recoverd from him and, therefore the entire amount of Rs.5,000 due from him was irrecoverable. 2) Create 10% provision for doubtful debt. Required: Pass the necessary journal entries and show the sundry debtors

account, bad debts account, provision for doubtful debts account, P&L a/c and Balance sheet as at 31st March 2009. [10 Marks] Q.5 A change in credit policy has caused an increase in sales, an increase in discounts taken, a decrease in the amount of bad debts, and a decrease in investment in accounts receivable. Based upon this information, the company s (select the best one and give reason) 1) Average collection period has decreased 2) Percentage discount offered has decreased 3) Accounts receivable turnover has decreased 4) Working Capital has increased. [10 Marks] Q.6 Identify the users of accounting information. [10 Marks]