MOHAMED SATHAK ENGINEERING COLLEGE, KILAKARAI DEPT. OF MCA CA5201 ACCOUNTING AND FINANCIAL MANAGEMENT UNIT-I PART-A 1.

. Define the term Accounting. 2. What is mean by Books of Accounts? 3. What is journal? 4. What is Ledger? 5. What is mean by Trail balance? 6. What is mean by Recording? 7. What is mean by classifying? 8. What is mean by Summarizing? 9. What is mean by interpreting? 10. What is mean by single entry system? 11. What is mean by double entry system? 12. What is mean by cash system of Accounting? 13. What is mean by mercantile system of Accounting? 14. What is the money measurement concept? Give examples. 15. What is mean by current assets? 16. What is mean by current liabilities? 17. What is mean by fixed assets? 18. What is mean by fixed liabilities? 19. Give journal Entries Salary paid to Mr.Ram Rent received from Mr.Kannan 20. What is mean by Non-profit making organization? Give examples. Part-B 1. 2. 3. 4. 5. Explain the Functions of Accounting? Explain the various concepts of Accounting? What are the basic conventions of Accounting? Distinguish between a Journal and a Ledger. Distinguish between a Trial balance and Balance sheet.

6. Ramas trial balance as on 31st Dec 2008

Particulars Sundry debtors Sundry creditors Bills receivable Plant & machinery Purchase Capital Free hold premises Salaries Postage & stationery Carriage in Carriage out Bad debts Bad debts provision General charges Cash at bank Cash in hand Bills payable Reserve Sales Closing stock Total

Debit 50600 5000 75000 90000

Credit 10000

70000 50000 11000 14400 750 1000 950 350 1500 5300 800 5000 20000 231700 30000 337050 337050

Adjustments Rama gets a salary of rs.9000 p a. Allow 5% interest on capital Bad debts provision to be adjusted to 2.5% on sundry debtors 2.5% of the net profit to be credited to reserve It was discovered in January 2009 that stock sheets as on 31st Dec 2008 were over cost by rs.1000 Prepare trading and profit & loss account for the year ended 31st Dec 2008 and balance sheet as on that date.

7. The X companies trial balance as on 31st Mar 2002.You are required to prepare

the final accounts. Particulars Sundry debtors/Creditors Capital/Drawings Insurance General expenses Salaries Patents Machinery Freehold land Building Stock on 1/4/2001 Carriage on purchase Carriage on sales Fuel and power Wages Return inwards Return outwards Sales Purchase Cash at bank Cash in hand

Debit 145000 52450 6000 30000 150000 75000 200000 100000 300000 57600 20400 32000 47300 104800 6800

Credit 63000 710000

5000 987800 406750 26300 5400 176580 0

1765800 Total Adjustments Stock on 31st mar 2002 was valued at rs.68000 A provision for doubtful debts is to be created to the extent of 5% on sundry debtors Depreciate machinery 10%, patents by 20% Wages included a sum of rs.20000 spent on erectioning a cycle shed for employers and customers. Salaries for the month of march 2002, amounting to rs.15000 were not paid Insurance includes a premium of rs.1700 on a policy expiring on 30th September 2002.

8. The following trial balance is extracted from the books of ABC & co for the year

ended 31st Dec 2008. Prepare the final accounts. Particulars Debit Credit Furniture 640 Motor vehicle 6250 Building 7500 Capital 12500 Bad debts 125 Interest received 200 Sundry debtors 3800 Sundry creditors 2500 Opening stock 3460 Purchase/Sales 5475 15450 Bank o/d 2850 Advertising 450 Cash 650 Insurance 750 Salaries 3500 Machinery 900 33500 33500 Total Adjustments Closing stock rs.5000 Insurance prepaid rs.150 Write off bad debts rs.1000 Depreciation on machinery by 10% Salary outstanding rs.1500

9. The following trial balance is of Krishna for the year ended 31st Dec 2008.

Prepare the final accounts. Particulars Debit Credit Capital of Ram 15000 Purchase/Sales 55000 75000 Drawings 2500 Stock (1.1.2008) 11000 Bank 2100 Furniture 1300 Debtors/Creditors 9000 7900 Premises 10000 Rent 500 Sales return 1000 Discount 200 Insurance 1000 Sundry expenses 2000 Commission 1100 Carriage in 900 Bad debts 400 Carts and vans 5000 Cash 500 100700 100700 Total Adjustments Closing stock rs.9900, write off rs.140 as depreciation on furniture,5% on carts and vans and 3% on premises, Provide a reserve of 5% on debts for bad and doubtful debts.

10. The following trial balance is of ABC & co for the year ended 31st Dec 1995.

Prepare the final accounts. Particulars Debit Cash in hand 2400 Purchase 240000 Stock(1.1.1995) 70000 Debtors 100000 Plant & machinery 120000 Furniture 30000 Bills receivable 40000 Rent & tax 20000 Wages 32000 Salaries 37600 Capital Bills payable Creditors Sales

Credit

200000 44000 48000 400000

692000 692000 total Adjustments Closing stock rs.50000 Outstanding wages rs.5000 Goods withdraw for personal use rs.2000 Depreciation on plant & machinery @ 10%,furniture @ 5% Unit-II Part-A 1. What is mean by fund flow? 2. What is mean by working capital? 3. Explain the meaning of funds? 4. What is fund from operation? 5. What is mean by cash flow? 6. What are the limitations of cash flow analysis? 7. What are the limitations of fund flow statement? 8. Define marginal casting? 9. What is mean by contribution? 10. What is mean by p/v ratio? 11. What is mean by break even point? 12. What is mean by break even sales? 13. What is mean by fixed cost? 14. What is mean by variable cost? 15. What are all the information comes under the variable cost?

16.

Sales-420000 Direct Material-120000 Direct Labour-110000 Profit-100000 Find out fixed expenses? 17. Direct Material -180000 Direct Labour -80000 Fixed expenses-100000 Profit-50000 Find out sales? 18. The fixed expenses of an industrial concern amount to Rs-180000.its variable cost per unit are Rs-29 and s. price is Rs-44 per unit. Calculate BEP? 19. Sales-1000 units at 10each Rs-10000 Variable cost Rs-6 per unit Fixed cost Rs-8000 Find BEP? 20. Sales-400000 Variable cost-300000 Fixed cost-40000 What is the P/V ratio?

PART-B 1. What are the principles is essential for preparation of fund flow statement? 2. Different between fund flow statement and balance sheet? 3. Different between fund flow and cash flow statement? 4. Explain the utilities of cash flow statement? 5. Comparative B/S of star ltd as on 31st dec 2008. You are prepare a cash flow statement. Liabilities Share capital General reserve Accumulated dep Debenture 12% Creditors 2008 10000 0 70250 60000 50000 28000 30825 0 2009 16000 0 85300 40000 10000 38000 33330 0 Assets Fixed assets Stock Debtors Prepaid expenses Bank 2008 152000 93400 30800 3950 28100 308250 2009 200000 89200 21100 3000 20000 333300

Additional information.

I.net profit rs.27050 ii. Depreciation for rs.30000 on Fixed Assets iii. dividend made during the year rs.12000 6. Comparative B/S of Boss ltd as on 31 st dec 2004. You are preparing a cash flow statement. Liabilities A/c payable Capital 2003 29000 73900 0 76800 0 2004 25000 61500 0 64000 0 Assets Fixed assets Stock Debtors Building Cash 2003 600000 8000 20000 100000 40000 768000 2004 500000 13000 17000 80000 30000 640000

Additional informations. I. There were no drawings ii. There was no purchase and sales. 7.From the following B/s of X ltd statement showing changes in working capital and fund flow statement. Liabilities Equity share capital Preference Sh. Capital 5% Debenture General Reserve P&L a/c Proposed dividend Creditors Bills payable Provision for tax 2006 300000 100000 70000 40000 30000 42000 35000 20000 40000 2007 400000 100000 . 70000 48000 50000 83000 16000 50000 Assets Goodwill Land & building Plant Debtors Stock Bills receivable Cash in hand Cash at bank 2006 115000 200000 80000 160000 77000 20000 15000 10000 2007 90000 170000 200000 200000 109000 30000 10000 8000

677000

817000

677000

817000

Adjustments: Depreciation of rs.10000 and rs.20000 is to be charged are plant and land & building. Dividend rs.20000 has been paid during the year. Income tax of rs.30000 has been paid during the year

8.From the following B/s of Chandru ltd prepare statement showing changes in working capital and fund flow statement. Liabilities share capital General Reserve P&L a/c Creditors Provision for tax 2006 400000 .. 14000 106000 520000 2007 575000 1000 30000 70000 676000 Assets Plant Debtors Stock Cash in hand 2006 75000 181000 121000 143000 2007 100000 170000 136000 270000

520000

676000

Adjustments: Depreciation is to be charged on plant rs.5000 Income tax paid during the year rs.6000

9. From the following B/s of Moon ltd prepare statement showing changes in working capital and fund flow statement. Liabilities share capital P&L a/c Proposed dividend Creditors 2006 63000 50000 5000 42000 35000 195000 2007 100000 60000 6000 39000 25000 230000 Assets Land furniture Debtors Stock Cash 2006 80000 15000 30000 55000 15000 195000 2007 100000 10000 28000 72000 20000 230000

Adjustments: Depreciation is to be charged on land rs.5000 Dividend rs.2000 has been paid during the year. Tax of rs.5000 has been paid during the year. UNIT III PART A

1) Define Finance 2) Define financial management 3) What is mean risk ? 4) What is mean by return ? 5) Define dividend 6) What is mean by dividend policy ? 7) What is leverage ? 8) What is operating leverage ? 9) What is financial leverage ? 10) What is combined leverage ? 11) What is capital budgeting ? 12) What is mean by cost of capital ?

PART B 1) Explain scope of financial management 2) What are all the functions of financial management ? 3) Discuss Liquidity Vs profitability 4) Explain the role of financial management 5) Explain the objectives of financial management 6) What are all the factors deciding dividend policy ? 7) What are all the types of leverage ? 8) Need and important of capital budgeting ? 9) What are all the types of investment decision ? 10) Explain the important of weighted average cost of capital? UNIT IV PART A 1) What is mean working capital? 2) What is mean working capital management? 3) Explain need for working capital 4) What is operating cycle ? 5) What is receivable ? 6) What is mean by receivable management ? 7) What is mean by Inventory? 8) What is mean by Inventory Management? 9) What is fixed working capital? 10) What is variable working capital?

PART B

1) 2) 3) 4) 5) 6) 7)

Explain the concepts of working capital Explain the important of working capital Explain one operating cycle system with diagram. What are the classification of working capital ? What are all the factor deciding working capital ? Explain Dimensions of receivable management ? You are required to prepare for the balance sheet of Sumana limited, a statement showing the working capital needed to firm a level of activity of 5,200 unit of output. Particulars Raw material = Direct labour = Over head = Rupees per unit 8 2 6

16 Profit = 4

Selling price

20

Additional information: Raw Materials are in stock on average 1 month, material are in process on average half month, finished goods are in stock an average 6 weeks, credit allowed by creditors is 1 month, credit allowed by debtors is 2 months, cash in hand expected to be 7,300, You are informed that production is carried out evenly during the year, wages and over heads accrues similarly.

8) You are required to prepare for the balance sheet of Sun limited, a statement showing the working capital needed to firm a level of activity of 12,000 unit of output. Particulars Rupees per unit

Raw material = Direct labour = Over head =

5 3 2

10 Profit = 2

Selling price

12

Additional information: Raw Materials are in stock on average 1 month, material are in process on average 2 months, finished goods are in stock an average 3 months, credit allowed by creditors is 2 month, credit allowed by debtors is 4 months.

UNIT 5 Part A 1. What is Tally? 2. What is Ledger? 3. What is Voucher? 4. What is cash receipt? 5. What is balance sheet? 6. What are the features of Tally? 7. How you altering Groups? 8. How you deleting groups? 9. What is account configuration?

10. How you create a new individual ledger? Part B 1. Explain the importance of tally? 2. How to create a company in tally? 3. How to create a group in Tally? 4. How to create a ledger in tally? 5. Explain the functions of function keys and short cut keys?