MB0041 Q1.

Accounting Principles are the rules based on which accounting takes place
and these rules are universally accepted. Explain the principles of materiality and
principles of full disclosure. Explain why these two principles are contradicting each
other. Your answer should be substantiated with relevant examples.
Principle of Materiality

While important details of financial status must be informed to all relevant

parties, insignificant facts which do not influence any decisions of the investors or
any interested group, need not be communicated. Such less

significant facts are not regarded as material facts. What is material and what is
not material depends upon the nature of information and the party to whom the
information is provided. While income has to be shown for income tax purposes,
the amount can be rounded off to the nearest ten and fraction does not matter.
The statement of account sent to a debtor contains all the details regarding
invoices raised, amount outstanding during a particular period. The information on
debtors furnished to Registrar of Companies need not be in detail.

Principle of Full Disclosure

The business enterprise should disclose relevant information to all the parties
concerned with the organization. It means that any information of substance or of
interest to the average investors will have to be disclosed in

the financial statements.

The Companies Act, 1956 requires that income statement and balance sheet of a
company must give a fair and true view of the state of affairs of the company.

Example: The practice of providing Appending Note to the financial statements.

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1.

 Materiality principle: Accountants follow the materiality principle, which states that the requirements of any
accounting principle may be ignored when there is no effect on the users of financial information. Certainly,
tracking individual paper clips or pieces of paper is immaterial and excessively burdensome to any company's
accounting department. Although there is no definitive measure of materiality, the accountant's judgment on such
matters must be sound. Several thousand dollars may not be material to an entity such as General Motors, but that
same figure is quite material to a small, family-owned business.
 Full disclosure means to disclose all the details of a security problem which are known. It is a philosophy of
security management completely opposed to the idea of security through obscurity. The concept of full disclosure
 is controversial, but not new; it has been an issue for locksmiths since the 19th century. Full disclosure requires
that full details of security vulnerability are disclosed to the public, including details of the vulnerability and how
to detect and exploit it. The theory behind full disclosure is that releasing vulnerability information results in
quicker fixes and better security. Fixes are produced faster because vendors and authors are forced to respond in
order to save face. Security is improved because the window of exposure, the amount of time the vulnerability is
open to attack, is reduced. The full disclosure principle states that any future event that may or will occur, and that
will have a material economic impact on the financial position of the business, should be disclosed to probable and
potential readers of the statements. Such disclosures are most frequently made by footnotes. For example, a hotel
should report the building of a new wing, or the future acquisition of another property. A restaurant facing a
lawsuit from a customer who was injured by tripping over a frayed carpet edge should disclose the contingency of
the lawsuit. Similarly, if accounting practices of the current financial statements were changed and differ from
those previously reported, the changes should be disclosed. Changes from one period to the next that affect current
and future business operations should be reported if possible. Changes of this nature include changes made to the
method used to determine depreciation expense or to the method of inventory valuation; such changes would
increase or decrease the value of ending inventory, cost of sales, gross margin, and net income or loss. All changes
disclosed should indicate the dollar effects such disclosures have on financial statements.

2. Journalize the below transactions, prepare relevant ledger accounts and finally trial balance. . ( 6+6+3 = 15 Marks)
M/s Ventak Enterprise Pvt Ltd.

01.01.2009 Started business with cash Rs. 2,00,000 Goods Rs.

1,00,000 Furniture Rs. 50,000

01.01.2009 Opened Current Account with Rs. 1,00,000

02.01.2009 Placed an order with Ritik for the supply of goods of the
list price of Rs. 1, 00, 00.In this connection, we paid 9%
of the list price as an advance by cheque.

03.01.2009 Ritik supplied goods of the list price of Rs. 1, 00,000

less 12% trade discount. Packing and delivery charges
Rs. 1,000.

04.01.2009 Purchased goods from Murali of the list price of Rs.

1,00,000 less 12% trade discount and paid him by
cheque under a cash discount of 5%

05.01.2009 Received an order from Shyam for supply of goods of

the list price of Rs. 1, 00,000 with an advance of 10% of
list price.

06.01.2009 Supplied the above goods at 10% trade discount.

Packing and delivery charges Rs. 1000.

07.01.2009 Goods costing Rs. 80,000 sold to Mr X at a profit of

20% on sales less 10% trade discount and 2% cash
discount

08.01.2009 Goods (cost Rs. 3,000, Sales Price Rs. 4,000) taken
away by the proprietor for his personal use.

09.01.2009 Shyam became insolvent and paid 80 paise in a rupee in

full and final settlement

10.01.2009 Paid Ritik 80% on account.

11.01.2009 Goods (Cost Rs. 3,000 , Sales Price Rs. 4,000) stolen

12.01.2009 Paid Life Insurance Premium Rs. 1,000.

13.01.2009 Cash embezzled by an employee Rs. 1,000.

  
3. Explain any two types of errors that are disclosed by trial balance with examples and rectification entry.
Note - Avoid giving examples given in the self learning material. (10 marks) Nov 2010
4. Let us assume you have been recently appointed as Management Accountant of a small but upcoming firm. Your
immediate supervisor has asked you to prepare certain financial ratios from the balance sheet of one of their clients M/s
Vinod Enterprise.

Liabilities Amount Assets Amount

Equity Share Capital 50000 Fixed assets 87500

8% Pref Share Capital 10000 Investments 25000

Reserve Fund 40000 Stock 30000

6% Debentures 20000 Sundry Debtors 13500

Sundry Creditors 30000 Bank Balance 7000

P & L account 21000 Preliminary expenses 8000

Year 2000 - 1000
2001 - 20000

Total 171000 Total 171000

 
The director intent to transfer a sum of Rs.5000 out of the current year’s profit to provision for tax. The financial ratios
needed are:
a. Return on capital employed
b. Current ratio
c. Fixed assets to networth
d. Debt - Equity ratio
e. Return on owner’s capital. (10 Marks)
 
5. A friend of you has approached to help him out in setting his books of accounts in order. Unfortunately he is struck with
difference in trial balance. Help him in redrafting the trial balance. (5 Marks)

Sl.no Particulars Dr Cr

1 Stock on 31st Dec,2008 1,92,100

2 Capital 13,450

3 Cash in hand 1,400

4 Bank Overdraft 9,320

5 Sales 2,36,400

6 Purchases 106,400

7 Returns inward 13,400

8 Returns outward 2,960

 9 Carriage outward 2,360

10 Carriage inward 14,260

11 Salaries 9,600

12 Wages 3,660

13 Sundry debtors 16,300

14 Sundry creditors 37,360

15 Stock on 1st Jan 2006 94,120

16 Land and building 15,000

17 Plant and machinery 20,900

18 Trade expenses 2,090

3,95,540 3,95,540

6. Explain the accounting treatment of bad debt and provision for doubtful debts with suitable example. (10 Marks)
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Masters of Business Administration- MBA Semester 1
MB0045 – Managerial Economics - 4 Credits
(Book ID: B1131) Assignment Set- 1 (60 Marks)
Note: Each question carries 10 Marks. Answer all the questions.
1. Explain what is price elasticity of demand and outline the determinants of price elasticity of demand with
examples.
Price elasticity of demand (PED or Ed) is a measure used in economics to show the responsiveness, or HHelasticityHH, of
the quantity demanded of a good or service to a change in its price. More precisely, it gives the percentage change in
quantity demanded in response to a one percent change in price (holding constant all the other determinants of demand, such
as income). It was devised by HHAlfred MarshallHH.
Price elasticities are almost always negative, although analysts tend to ignore the sign even though this can lead to
ambiguity. Only goods which do not conform to the HHlaw of demandHH, such as HHVeblenHH and HHGiffen goodsHH,
have a positive PED. In general, the demand for a good is said to be inelastic (or relatively inelastic) when the PED is less
than one (in absolute value): that is, changes in price have a relatively small effect on the quantity of the good demanded.
The demand for a good is said to be elastic (or relatively elastic) when its PED is greater than one (in absolute value): that is,
changes in price have a relatively large effect on the quantity of a good demanded.
Revenue is maximised when price is set so that the PED is exactly one. The PED of a good can also be used to predict
the HHincidence (or "burden") of a taxHH on that good. Various research methods are used to determine price elasticity,
including HHtest marketsHH, analysis of historical sales data and HHconjoint analysisHH.

Definition
PED is a measure of responsiveness of the quantity of a good or service demanded to changes in its price.HH1HH The
formula for the coefficient of price elasticity of demand for a good is:HH2HHHH3HHHH4

 
2. In the newspapers we read about mergers between companies in the same line of business. What are the economies of
scale that can be availed of with mergers.
3. Discuss the features of monopolistic competition and the method of price determination in monopolistic competition.
4. If you were to buy a car, what are the factors that would affect the demand for your purchase.
5. When factors of production are combined to produce a particular level of output, what would be the effect on total product
when all factors are kept fixed and only one factor is varied. For example, when the amount of land used for producing a
particular crop is kept the same, and the other factors of production like labour, fertilisers, etc is increased.
6. A company wishes to project the production requirements of a particular product in the coming years. How will the
company forecast the demand in the coming years, using the trend projection method
 
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.
Masters of Business Administration- MBA Semester 2
MB0042 – Managerial Economics - 4 Credits
(Book ID: B1131)
Assignment Set- 2 (60 Marks)
Note: Each question carries 10 Marks. Answer all the questions.
1. The supply of a product depends on the price of the product. This determines the supply curve. What are the factors other
than price that cause shifts in the supply curve.
2. Explain with examples the following types of costs:
a) Fixed costs
b) Variable costs
c) Marginal costs
d) average costs
e) short run costs
3. Indian railways is an example of monopoly in India. Discuss the factors that determine price in the different categories of
travel in railways.
4. In the case of consumer durables, we find that when the product is introduced, the prices are high, but over time the prices
reduce. What is the pricing policy followed?
5. In the long run, the long run average cost curve is an envelope of the short run cost curves. Discuss the concept behind the
same.
6. A company wishes to introduce a new flavour of tea in the market. Discuss how the company can forecast demand for the
new flavour of tea.
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Master of Business Administration-MBA Semester I  SET 1
MB0043  Subject Name – Human Resource Management
 
Q.1 What are the functions that HR attempts to fulfill in any organization.

The definition of human resource management emphasizes the sphere of influence to encompass 'the strategic approach to
manpower management in an organization'. The process calls for a coherent objective to retain and increase employee head-
count, any organization's most valued asset. This specialized study and application has come in the wake of realization that
the employees of an organization, individually and collectively, are the main contributors to the achievement of business
objectives. The management of people hired by an organization involves employing people, designing and developing
related resources and most importantly, utilizing and compensating their services to optimize business profitability
via employee performance. Today, Human Resource Management operates in tune with other essential organizational
requirements and co-exists with the topmost management cadre. Managing human resources within a company calls for a
liaison between the organization's management personnel and the administration of the executive rungs. It thrives on the
strength of the relationship between the management and workers of the company. 

Functions of Human Resource Management:

Human Resource Management involves the development of a perfect blend between traditional administrative functions and
 the well-being of all employees within an organization. Employee retention ratio is directly proportionate to the manner in
which the employees are treated, in return for their imparted skills and experience. A Human Resource Manager ideally
empowers inter-departmental employee relationships and nurtures scope for down-the-rung employee communication at
various levels. The field is a derivative of System Theory and Organizational Psychology. Human resources has earned a
number of related interpretations in time, but continues to defend the need to ensure employee well-being. Every
organization now has an exclusive Human Resource Management Department to interact with representatives of all factors
of production. The department is responsible for the development and application of ongoing research on strategic advances
while hiring, terminating and training staff. The Human Resource Management Department is responsible for:
Q.2 Discuss the cultural dimensions of Indian Work force. [10 Marks]
Q.3 Explain the need for Human Resource Planning system .[10 Marks]
Q.4 Elucidate the classification of wages in the Indian System.[10 Marks]
Q.5 Ms. S. Sharma is the General manager HR of a private educational group. She is planning for the promotion policy for
the faculty members. The norms are also ruled by the government policy and criteria. Moreover the options to promote are
limited. Suggest Ms Sharma the alternative way to vertical promotion. What are the challenges in implementing that option?
[10 Marks]
Q.6 ABC is an organization that wants to revise the HR policies. Before doing that it want to have some details about the
following:
What the emplyees think about the company?
What do they think ,in the company is going well?
What practices in the company they think are not doing well?
Get the feedback on managerial effectiveness.
Suggest the suitable method to collect the employee opinion and explain the method. [10 Marks] Nov 2010
 
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Experts (MBA Experts). So we can assure 100% Guarantee.
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Master of Business Administration-MBA Semester I
Subject Code – MB0043
Subject Name – Human Resource Management
4 Credits
(Book ID: B0909)
Assignment Set- 2 (60 Marks)
Note: Each question carries 10 Marks. Answer all the questions.
Q.1 Discuss the factors affecting recruitment? [10 Marks]
Q.2 Right Time is a watch manufacturing company. It has hired 20 people recently for the company. They will be involved
in manufacturing, assembling of watches. They will be using different machines and tools for this. What type of training is
best for them. What may be the advantages and limitations of the training method? [10 Marks]
Q.3 Write a note on 360 degree appraisal method.[10 Marks]
Q.4 Given below is the HR policy glimpse of “ZoomVideo”, a multimedia company
1. It offers cash rewards for staff members
2. It promotes the culture of employee referral and encourages people to refer people they know, maybe their friends, ex.
colleagues, batch mates and relatives.
3. It recognizes good performances and gives good titles and trphies to the people who perform well and also felicitates them
in the Annual Day of the company.
Identify what all aspects does it take care of, based on different levels of Maslow’s Need Hierarchy ? [10 Marks]
Q.5 Describe the emerging employee empowerment practices. [10 Marks]
Q.6 Write a note on directive, permissive and participative type of leadership. [10 Marks]