5135-c M.B.A.

(first semester 21st batch) examination, 2002 (Batch -20th back log) Financial and cost accounting (105A) Time: three hours Maximum marks: 80 Note: attempt one question from each of the following units maintaining internal choice. All question carry equal marks.

UNIT-1
1. Journalize the following transactions and prepare ledger accounts in the books of M/S Sun Enterprises: 12th April 2001-commenced business with cash Rs.7, 00,000/- and goods worth Rs.8, 00,000/13th April 2001 purchased machinery worth Rs.10, 000/- and furniture for office worth Rs.20, 000/14th April 2001-sold goods to Danny Rs.10, 500/15th April 2001-placed an order for goods Rs.10, 000/16th April 2001-withdrew Rs. 1000/- for house repairs. 17th April2001-goods worth list price of Rs.20, 000/- were purchased from Ram trade discount of 10% 19th April2001- paid Rs. 1500/- for rent in advance. 20th April2001- purchased goods worth Rs.6, 000/- on cash basis and got cash discount of 3%. 21th April2001- cash worth Rs. 7,000/- was stolen by an office assistant from the office. 23th April2001- received cheque of Rs. 1380/- from John in full settlement of the account and allowed him a discount of Rs.20/-. OR

What is an adjustment entry? Explain in detail the impact it carries over the major spheres of financial accounting?

UNIT-2
2. Following information was extracted from the trial balance of M/S Rajesh Singh for the

year which ended on 31st December 1999. The final accounts need to prepare after taking into accounts the adjustments.
Capital Drawings Stock (on 1-1-1998) Return inwards Carriage inwards Deposits with Mr. Kamal (interest free) Carriage outwards Loan to Mr. Anil@5% given on janauary1999 Return outwards Interest on the above loan Sales Discount allowed Plant and machinery (Purchased on 1-1-1999) 1 80,000 32,500 1, 74,450 5,540 12,400 13,750 7,250 10,000 8,400 250 12, 79,140 3,300 30,000 Rent (Dr.) Outstanding rent (Cr.) Purchases Debtors Goodwill Creditors Advertisement expenses Provision for doubtful debts Bad debts Patents and trademarks Cash in hand Wages 8200 1300 11, 29,700 40,000 17,300 30,000 9,540 12,000 4,000 5,000 620 7,540

Adjustments: (a) Increase bad debts by Rs.6, 000/- make provision for doubtful debts @10% and for discount on debtors@5%. (b) The closing stock stands at a value of Rs. 1,87,920/(c) Wages include Rs.2, 000/- paid for machinery execution on 1-1-1999. (d) Provide depreciation on machinery @10%.p.a. OR 3. Difference a Balance Sheet and a Trial Balance. 4. What is meant by Marshalling by balance sheet? 5. Write down the purpose of Responsibility Accounting

UNIT-3
3 .Explain the following costing techniques:

(a) Standard costing (b) Absorption costing (c) Marginal costing OR The following inventory data relates to Zoom Ltd. Opening inventory: Finished goods Work in progress Raw materials

Rs.10, 000 70,000 90,000

Closing inventory: Finished goods Work in progress Raw materials Additional information: Cost of goods available for sales Rs.6, 54,000. Total goods processed during the year Rs.6, 54,000. Factory Overheads Rs.1,67,000 Direct Material used Rs.1,93000 Determine the following. 1. Raw Material Purchased 2. Direct Labour cost incurred 3. Cost of goods sold

Rs.95, 000 80,000 95,000

UNIT-4
6. Through three distinct stages a product passes in a manufacturing organization. These processes are numbered respectively as G-1, G-2 and G-3. During the week ended on 31st January, 1,000 units are produced. The following information is obtained: G-1 (Rs.) G-2 (Rs.) G-3 (Rs.) Material 6000 3000 2000 Labour 5000 4000 5000 Labour 1000 200 1000 The indirect expenses of Rs. 2800/- for the period were apportioned on the basis of labour cost between the processes. Prepare process accounting showing total and per unit cost. OR (a) Differentiate a balance sheet with a trial balance. (b) What is meant by Marshaling of Balance Sheet? (c) Write down the purpose of responsibility accounting.