Course Code: 173MC1T05

ADITYA ENGINEERING COLLEGE (A)

MCA I Semester End Examinations (Regular) January 2018
ACCOUNTING & FINANCIAL MANAGEMENT

Time: 3 hours Max. Marks: 60

________________________________________________________________________________________________________________________________________________________________________________________________________________________

Answer any FIVE Questions

All Questions Carry Equal Marks
All parts of the questions must be answered at one place only

1 a Explain the role of an Accountant in the modern organizations [12M]

What is a Trail Balance? What are the objectives of preparing a Trail
Balance
2 a What are the limitations of Accounting Ratios? [4M]
b Identify the three major types of activities classified in a cash flow statement [8M]
and explain each activity’s cash inflows and cash outflows.
3 a Distinguish between Absorption costing and Marginal costing [6M]
b What are the basic assumptions and limitations of CVP analysis [6M]
4 a What is a sales budget? How is it prepared? [4M]

b A Company manufacturing ‘distempers’ operated a costing system. The [8M]

standard cost of one of the products of the company shows the following
standards:
Materials Quantity Standard price per kg Total
(Rs.)
A 40 kg 75 3,000
B 10 kg 50 500
C 50 kg 20 1,000
Total material cost per unit = 4,500
The standard input mix is 100 kg. and the standard output of the finished
product is 90 kg. The actual results for the period are:
A = 2,40,000 kg @ Rs. 80 per kg
B – 40,000 kg @Rs. 52 per kg.
C= 2,00,000 kg @ Rs. 21 per kg.
Actual output of the finished product = 4,20,000 kg.
You are required to calculate the material price, mix and yield variance

5 a What do you understand about the computerized accounting system? [8M]

b Write about the documents that are used for data collection? [4M]
6 a Explain the ‘Accounting Cycle” [5M]
b How do you classify the accounts? Explain the rules of debit and credit with [7M]
respect to different types of accounts.
7 a The following information is provided to you [8M]
Selling price per unit Rs. 40
Variable cost per unit Rs. 24
Fixed cost per unit Rs. 6
Profit per unit Rs. 10
Present sales volume is 2,000 units
Your are required to calculate
i. P/V ratio and Breakeven point
ii. Margin of safety
iii. Sales required to earn a profit of Rs. 26,000
iv. Profit at a sales volume of 2,500 units
b What are the advantages of Ratio analysis? [4M]
8 a What do you understand by the terms over capitalization and under [6M]
capitalization?
b Distinguish between forecasting and budgeting? [6M]

*****