SMU PAPERS AND ASSIGNMENTS: MB0041, MBA-1, Financial & Management Accounting

Financial & Management Accounting

PART-A

1. ______ is basically a day book in which transaction are first entered in a systematic manner adopting the principles of debit and credit.

(A) Ledger (B) Journal (C) Primary books (D) Secondary books

2. Each page of the journal is numbered and it is called ____

(A) Ledger folio (B) Journal folio (C) Account folio (D) None of this

3. __________ is given to briefly describe the transaction.

(A) Debit (B) Credit (C) Narration (D) Accounting ]

4. “ Debit the receiver and credit the giver” related with.

(A) Personal a/c (B) Real a / c (C) Nominal a/c (D) None

5. “ Real accounting followed this principle”

(A) Debit the receiver and credit the giver

(B) Debit all expenses and losses and credit all incomes and gains

(C) Debit what comes in and credit what goes out

(D) None

6. When interest is received in cash, cash account is debited and ____ account is credited.

(A) alleges (B) Cash (C) Interest (D) None

7. Goods purchased from mukundan in this entry ____ should be debited.

(A) Sales a/c (B) Purchase a/c (C) Purchase return (D) Sales return

8. Interest paid to mukundan, in this entry __________ should be debited.

(A) Interest account (B) Cash account (C) Mukundan’s account (D) None of this

9. Loss of asset as a result of wear and tear is called ______

(A) Depreciation (B) Sold of assets (C) Both (D) None of this

10. ___________ Made by proprietor should be reduced from his capital account.

(A) Extra capital (B) Net profit (C) Drawings (D) None of this

11. Paid rent Rs 160, account debited in this entry ____

(A) Alages (B) Building (C) Drawing (D) None of this

12. Ledger is regarded as ____ book.

(A) Special (B) New (C) Secondary (D) Cash

13. The final accounts include __________, ________________, and _____________

(A) Trial balance, secondary & primary books (B) Trading, profit, & loss a/c, . Balance sheet

14. ______________ is a statement containing the various ledger balance on a particular data.

(A) Balance sheet (B) Trading a/c (C) Profit & Loss a/c (D) Trial balance

15. ________ And _________ are the two techniques of preparing trial balance.

(A) Totals method, balance method (B) Balance method, equal method

16. __________ Is very popular method of trial balance.

(A) Balance method (B) Equal method (C) Totals method (D) Different method

17. Sales made to Krishna Rs 5000 is transferred to credit side of krishna’s account in the ledger, these type of error ________

(A) Posting a wrong amount (B) Posting to the wrong side of an account

(D) Posting an item to the same side of two different ledger accounts

18. Advertisement account which shows a debit balance is completely omitted from trial balance, these type of error

(A) Posting a wrong amount (B) Wrong totaling

(C) Omission of an account altogether from being shown in trial balance.

(D) Posting an amount to a correct account more than once.

19. Depreciation is a ____ to the organization

(A) Profit (B) Loss (C) Both (D) None

20. Two popular methods of depreciation, namely _____ and _____.

(A) Fixed installment, total method (B) Fixed installment, fund method

(C) Fixed installment, reducing balance method (D Reducing balance, depreciation fund method

21. Un recovered debts are called ____

(A) Bad debts (B) Bad debts recovered (C) Profit – debts (D) None

22. The entry made for provision for doubtful debts

(A) Profit and loss account debited, provision for bad debts account credited

(B) Provision for bad debts account debited, profit and loss account credited

23. Net profit arises from profit & loss account transferred from profit & loss a/c to capital a/c then what entry should be made

(A) Capital account debited, profit & loss a/c credited (B) Profit & loss a/c debited, capital a/c credited

24. Those exp. Spent for acquisition of capital assets, incurring capital expenditure, called

(A) Revenue expenses (B) Capital expenditure (C) Misc revenue exp. (D) None

25. A budget is a ____ expression of plan of action

(A) Qualitative (B) Quantitative (C) Both (D) None of this

26. According to _____ budgetary control is the planning in advance of the various functions of business so that the business as a whole can be controlled

(A) Weldon (B) Machine (C) Wash ton (D) None

27. Difference between budgeted and actual performance will be referred to as _____

(A) Standard (B) Actual Statement (C) Variance (D) None

28. Management decision is based on ____ costs.

(A) Relevant (B) Labour (C) Material (D) Special

29. Which function not include in the function of management accounting.

(A) Organizing (B) Coordinating (C) Forecasting and planning (D) Accounting

30. Audit is compulsory in _____

(A) Management accounting (B) Financial accounting

31. ________ Is the ability of the firm to meet its current liabilities as they fall due.

(A) Liquidity ratio (B) Solvency ratio (C) Profitability ratios (D) None

32. What is another name of liquid ratio -

(A) Acid test ratio (B) Solvency ratio (C) Debt equity ratio (D) None of this

33. Gross profit ration means ____

(A) Gross profit / sales x 100 (B) Sales / Gross profit x 100

34. As per _____ ratio, A firm’s capital structure is the relation of debt to equity as sources of the firm’s assets.

(A) Gross profit ratio (B) Capital creasing ratio (C) Leverage ratio (D) Debt equity ratio

35. pref. share capital, debentures, long term borrowings means

(A) Fixed cost bearing capital (B) Variable cost bearing capital

36. Plant and machinery Rs. 200000 ; land & building Rs. 200000 ; stock Rs. 150000 ; debtors Rs 50000 ; and cash balances Rs 100000 = 700000

Equity share capital 200000 ; 6 % pref. share capital 100000 ; 8 % debentures Rs. 100000 ; reserves and surplus Rs 100000 ; long term loan Rs. 50000 ; creditors Rs. 100000 ; bank overdraft Rs. 50000 = 700000 current ratio means

(A) 1 : 2 (B) 3 : 1 (C) 2 : 1 (D) None

37. Working capital is ______ minus _______

(A) Current assets, current liabilities (B) Current liabilities, fixed assets

38. Which items not to be deducted from net profit

(A) Dividend received (B) Profit on sale of no current assets

39. Decrease in assets may not included

(A) Cash received from debtors (B) Sale of goods

40. Redemption of pref. shares is __________

(A) Source of funds (B) Increase in funds

41. __________ In working capital is shown as application of funds and ______ In working capital as source of funds in the funds flow statement

(A) Decrease, increase (B) Decrease, decrease (C) Increase, decrease (D) Increase, increase

42. Increase incurrent assets item _________ working capital

(A) Decrease (B) Increase (C) Both (D) None

43. Funds flow statement is related with _______ basis where as cash flow statement is on ______ basis.

(A) Cash, Accrual (B) Accrual, Cash

44. Funds flow statement shows the causes of the changes in ______, cash flow statement shows the causes for the change in_______

(A) Net working capital, capital (B) Capital, cash

45. Purchase of fixed assets included in ______

(A) Operating activities (B) Financing activities (C) Investing activities (D) None

46. What treatment about decrease in current assets when we make cash flow statement

(A) Add (B) Less (C) Both (D) None

47. Proceeds from issue of share capital included in ______

(A) Operating activities (B) Investing activities (C) Both (D) None

48. Cash flow statement is based on 2 methods _________ and ___________

(A) Direct, Indirect (B) Direct, Special (C) Special, Indirect (D) None

49. Those expenses which can not be directly and conveniently allocated to specific cost units / cost centers called as __________

(A) Indirect expenses (B) Direct expense (C) factory cost (D) Prime cost

50. ___________ is the total of direct material cost, direct labour cost and chargeable expenses

(A) Prime cost (B) Factory cost (C) Total cost (D) Office cost

51. What treatment about income tax during the preparation of cost sheet

(A) Add (B) Less (C) Not include (D) Multiply with wages

52. _________ may be certain amount of goods in a portly manufactured state at the end of a particular period.

(A) Work in progress (B) Raw material (C) Both (D) None

53. Work expenses are based on ______

(A) Indirect wages (B) Material (C) Direct wages (D) Overhead

54. Calculate factory cost

Prime cost Rs 296000 manufacturing expenses Rs 10000 opening work in progress Rs 2000 closing work in progress Rs 1000

(A) 11000 (B) 317000 (C) 307000 (D) 247000

55. A _______ Cost changes in total in direct proportion to a change in the level of activity or cost driver

(A) Fixed cost (B) Variable cost (C) Both (D) None of this

56. __________ Is the volume of activity where the organisation’s revenues and expenses are equal

(A) Break even point (B) Margin of safety (C) Variable cost (D) Fixed cost

57. Break even point expressed in ______

(A) Fixed expenses / profit volume ratio (B) Variable expenses / sales

58. Margin of sales expressed in ____________________

(A) Actual sales – break even sales (B) Break sales – variable cost

59. Basic equation is _______

(A) Sales + Variable cost = contribution (B) Sales – Variable cost = contribution

60. Calculate contribution & profit selling price unit Rs. 25, Variable cost Rs. 20 per unit, fixed cost Rs. 305000 output 80000 units

(A) 85000 (B) 82000 (C) 185000 (D) 95000

61. Fixed budget is also known as ______ budgets

(A) Cash (B) Flexible (C) Functional (D) None

62. __________ are also known as subsidiary budgets

(A) Cash (B) Flexible (C) Functional (D) None

63. A budget which is designed to changed in accordance with the level of activity actually attained called ______ budget

(A) Cash (B) Flexible (C) Fixed (D) None of this

64. The procedure for preparing plan in respect of future financial and physical requirements is generally called _______

(A) Cash budget (B) Budgeting (C) Flexible budget (D) Fixed budget

65. ___________ is a numerical statement expressing the plans, policies and goals of an enterprises for a definite period in the future.

(A) Budget (B) Statement (C) Finance profit (D) None of this

66. Budgetary control ensures that the capital employed at a particular level is kept at a ______ level.

(A) Minimum (B) Maximum (C) Medium (D) None

67. ____________ is a group of representatives of various important departments in an organization called

(A) Purchase department (B) Budget organization

68. Material price variance expressed in

(A) Standard cost – actual quality consumed x actual price per unit of material

(B) Standard cost – standard quantity consumed x actual price per unit of material

(D) Raw material consumed

69. Calculate direct material price variance

Standard price = Rs. 2.2 0

Actual price = Rs. 1.90

Actual quality = 260

(A) 78 (F) (B) 87 (A) (C) 70 (F) (D) 80 (A)

70. _______ Is arises due to the difference between standard yield specified and actual yield obtained

(A) Material price variance (B) Material usage variance

71. Direct labour efficiency variance expressed in

(A) (Standard hrs – actual hours worked) X actual rate

(B) (Standard hours – actual hours worked) X standard role

72. Labour rate variance is difference between _______

(A) Standard rate & actual rate (B) Standard quantity & actual quantity

73. Entries made for following business transaction – goods sold in cash Rs. 10000

(A) Cash debited, sales credited (B) Goods debited, sales credited

74. Salary paid to ram Rs. 5000

(A) Salary debited, cash credited (B) Ram debited, cash credited

75. The supplier’s account is _____ when the purchases are made.

(A) Debited (B) Credited (C) Both (D) Not include

76. Proprietor draws bills on _____ and accepts bills drown by ______

(A) Debtors, creditors (B) Creditors, Debtors (C) Supplier, Supplier (D) None

77. Bills payable account shows _____ balance and hence is a liability.

(A) Debit, Assets (B) Credit, Liability (C) Debit, liability (D) Credit, Assets

78. Sales book total for November was under cost by Rs 1200 then entry should be made

(A) Sales book debited, cash credited (B) Suspense account debit, sales account credited

79. Rs. 44.37 paid to anand has been credited to his account Rs. 34.37 then suspense account credited with Rs.

(A) 44.37 (B) 78.74 (C) 34.37 (D) None

80. A sum of Rs 125.05 realized on the sale of old furniture has been posted to the sales account then at the rectification time ____ a/c debited with Rs. 125.05.

(A) Sales (B) Purchase (C) Furniture (D) None

PART-B

1. When creditor are paid out _____ is debited and _____ account is credited

(A) Debtors account, cash (B) Cash, creditors account

(C) Creditor account, cash (D) Cash, debtors account

2. If wages are paid in cash for the establishment of machinery then entry should be made

(A) Machinery account debited and cash credited (B) Wages account debited and cash credited

3. Cash purchases are recorded in and credit purchase are recorded and credit purchases are recorded in _____

(A) Purchase book, cash book (B) Cash book, purchases book

4. ______________ is the document sent by the _____ while selling the goods

(A) Inward invoice, supplier (B) Supplier, Outward, invoice

5. The businessman who draws the bill is called _____ and the customer on whom it is drawn is _____

(A) Acceptor, drawer (B) Drawer, Drowse (C) Drowse, Drawer (D) None

6. Machinery purchased from ABC & company on credit debited and credited are

(A) Machinery, ABC & Company (B) ABC & Company, machinery

7. If a proprietor uses the goods of his business for his personal purpose called ______

(A) Capital investment (B) Drawings (C) Depreciation (D) Sales of goods

8. Purchase account credited when

(A) Goods lost by fire (B) Goods purchased from ram (C) Goods sold to mohan (D) None of this

9. The excess of debit over credit is called balance correct down to credit side of the account

(A) Credit (B) Debit (C) Both (D) None of this

10. Stands as a bridge between ____ and _____ books on one hand and final statements of accounts on the other hand

(A) Balance sheet, primary , secondary (B) Trial balance, primary, secondary

11. If furniture purchased, furniture, account and purchases account both are debited then this type of error ___

(A) Wrong totaling

(B) Posting an item to the same side of two different ledger accounts

(D) Posting to the wrong side of an account.

12. Following errors which type of error not disclosed by trial balance trial balance :-

(A) Error of wrong totaling (B) Error of principle

(D) None of this

13. Wages expenses for year 31.3.2008 outstanding is Rs 10000 the journal entry is as follows

(A) Wages account debited, cash account credited

(B) Wages account debited, outstanding wages expenses credited

(D) None of this

14. Expenses paid in advance are regarded as ______ such expenses form an _____

(A) Prepaid exp, liability (B) Outstanding exp. Assets

15. Interest accured on fixed deposit of Rs. 1000000 at 12 % simple interest on 31.12.2006 not yet received the entry is as follows ___

(A) Accured interest on FD account debited, interest on FD account credited

(B) Interest on FD account debited, accured interest on FD account credited.

(D) None of this

16. DR purchases goods both on cash and credit terms the follwing particulars are obtained from the books ; total purchases Rs 200000 cash purchases Rs 20000 purchase returns Rs 34000 creditors at the end Rs 70000 bills payable at the end Rs. 40000 reserve for discount on creditors Rs 5000. calculate average payment period.

(A) 285 days (B) 275 days (C) 365 days (D) 412 days

17. calculate sales : given if gross profit ratio = 15 % ; gross profit = Rs 60000

(A) 475000 (B) 415000 (C) 600000 (D) 400000

18. Calculate total debtors : given if

Sale = 420000, Debtors velocity = 3 months

(A) 100000 (B) 105000 (C) 215000 (D) 95000

19. A manufactures of television sells to retailers on terms 2.5 % discount in 30 days, 60 days net. The debtors and receivables at the end of December of past three years and net sales for all these three years are as under

Years 2005 2006 2007

Debtors 54842 33932 85582

Bills receivable 4212 3686 9242

Net Sales 268466 347392 443126

Determine avg. collection period for each of these three years

(A) 80, 40, 78 days (B) 180, 41, 70 days (C) 80, 41, 78 days (D) 86, 42, 71 days

20. Total sales Rs 100000, Cash sales Rs 20000 opening debtors Rs. 10000, Calculate debtors turnover ratio

(A) 2.23 (B) 3.16 (C) 2.48 (D) 3.56

21. Equity share capital 1000000

Redeemable Pref. capital 500000

6% Debentures 300000

Long term liabilities 200000

Reserve and surplus 20000

Calculate capital gearing ratio and ratio of total investment to long term liabilities

(A) 0.83:1, 2.2:1 (B) 0.27:1, 8.2:1 (C) 0.82 : 1, 2.1: 2 (D) None of this

22. The land and building account had a balance of Rs. 500000 on Jan. 2007. A piece of land has been sold there is no purchase Rs. 30000 depreciation has been charged in 2007. The balance stood on 1.1.2007 Rs. 20000 and Rs. 50000 on Dec. 31. The profit on sale has been credited to capital reserve a/c . The balance of Rs. 450000. Find the sale Proceeds.

(A) 50000 (B) 40000 (C) 80000 (D) 52000

23. The written down value of a machinery at the beginning and at close were Rs. 200000 and 175000. An old machine whose written down value was Rs. 12000 was sold for Rs. 6500. Rs 32000 depreciation was charged during the current year. Calculate the purchase price.

24. Given op. balance of plant & machinery Rs. 195000 in 1/1/2007, machinery purchase Rs. 15000 during the year 2007-08, machinery sold Rs. 5000 during the year 2007-08, closing balance of fixed assets Rs. 145000

(A) 60000 (B) 40000 (C) 30000 (D) 25000

25. Calculate cash flows from investing activities

Purchase of fixed assets Rs. 25000

Sale of fixed assets Rs. 15000

Interest received Rs. 10000

Depreciation Rs. 15000

Proceeds from long term borrowings Rs. 5000

(A) 50000 (B) 75000 (C) 60000 (D) 55000

26. Decrease in stock Rs. 50000 must be _____

In cash flow operating activities

(A) Less (B) Multiply (C) Add (D) None

27. What is prime cost if raw material Rs. 160000 direct wages Rs. 80000 and factory overheads Rs. 16000

(A) 240000 (B) 256000 (C) 216000 (D) 696000

28. Calculate the cost of raw material purchased opening stock of raw material Rs. 10000 closing stock of raw materials Rs 15000 expenses on purchase Rs 5000 direct wages Rs 50000 prime cost Rs. 100000

(A) 45000 (B) 50000 (C) 35000 (D) 95000

29. Calculate cost of production given

Direct material Rs 200000 Factory exp. Rs. 120000

Office expenses Rs. 90000 Total sales 650000

Prime cost Rs 410000 10% of the output is in stock

30. Find fixed cost when sales Rs. 200000 variable cost Rs. 40000 profit Rs. 30000

(A) 140000 (B) 125000 (C) 145000 (D) None

31. Calculate marginal contribution sales ratio

Period 1 Period 2

Sales Rs. 20000 Rs. 30000

Profit Rs. 2000 Rs. 4000

(A) 20 % (B) 25 % (C) 15% (D) 30 %

32. Calculate the break even point (in Rs.) : sales 200000 fixed expenses Rs. 50000 variable expenses Rs 100000

(A) 400000 (B) 350000 (C) 100000 (D) 120000

33. Calculate labour yield variance if

Actual output = 460 units, standard output = 500 units standard rate of wages Rs. 9 per hour. A standard time 2 hour per unit.

(A) 721 (A) (B) 725 (A) (C) 720 (F) (D) 720 (A)

34. Calculate labour cost variance if

Actual units produced = 250, Actual labour rate = 0.25 per hour

Actual hours worked 800 ; standard labour rate = 0.24

Per hour, Standard labour hours 3 per unit

(A) 80 (F) (B) 8 (A) (C) 8 (F) (D) None

35. ___________ Variance always an adverse one.

(A) Labour cost variance (B) Material mix variance

36. The following are the forecasts relating to wages

July Aug Sep Oct Nov

Ulages 32000 32000 32000 40000 32000

The lag in payment of wages is 1/8 month. Estimate the amounts of wages payable in each month of Sep to Nov.

(A) 32000, 38000, 30000 (B) 37000, 45000, 37000

(C) 32000, 39000, 33000 (D) 45000, 45000, 37000

37. Calculate variable overhead with the help of flexible budget for 80 %, 90% activity level

Variable overheads	Level of activity
	90% 80 % 90%
Indirect labour spares	10500 ? ? 3500 ? ?
Total	13500 ? ?

(A) 13500, 16000, 18000 (B) 13000, 12500, 17500

38. Goods withdrawal by proprietor for his use personal use then what entry should be made

(A) Drawings debited, cash credited (B) Cash, debited, Drawings, credited

(C) Drawings debited, purchase credited (D) Drawings debited, sales credited

39. What adjusting entry should be made about prepaid insurance

(A) Prepaid insurance, debited, cash credited

(B) Prepaid insurance debited, insurance expenses credited

40. What adjusting entry should be made for closing stock

(A) Closing stock debited, trading a/c credited (B) Trading account debited, stock credited

PART-C

1. Match of the following :-

(A)	Accounting equations	(1)	Real, personal, nominal
(B)	Accounting systems	(2)	L + C = A
(C)	Types of accounts	(3)	A + B = C
		(4)	Cash, mercantile
		(5)	Mercantile, accrual
		(6)	Real, tangible, intangible

(a) A – 2, B – 4, C – 1 (b) A – 3, B – 5, C – 6

2. True / false

(A) Personal account includes salary expenses

(B) Building account, furniture a/c are includes in tangible real accounts.

(D) An account is recorded in a “T” form

(1) TFTT (2) FTFT (3) FFTT (4) TTTF

3. True / false

(A) On the debit side by and credit side to are the prefix used for every entry as a matter of convention.

(B) Goods drawn for personal use, drawings a/c is a nominal account.

(1) FFT (2) TFF (3) FTF (d) None

4. Match of the following :-

(A)	Started business with capital Rs 50000	(1)	Kantilla debited, sales credited
(B)	Sold good to Kantilla Rs 10000	(2)	Cash debited, capital credited
(C)	Sold goods to ramcharan in cash Rs. 5000	(3)	Cash debited, sales credited
(D)	Wages paid Rs. 12000	(4)	Wages debited cash credited
		(5)	Cash debited, Wages credited

(1) A – 2, B – 1, C – 3, D – 4 (2) A – 3, B – 2, C – 4, D – 5

(3) A – 5, B – 4, C – 2, D – 2 (4) A – 1,B – 3, C – 1, D – 3

5. True / false

(A) All purchases are entered in to purchase book

(B) Inward invoice no are part of purchase book

(D) The person who draws the bill is called acceptor.

(1) FTTF (2) TTTF (3) FFTT (4) TTTT

6. Match the following :-

(A) Telephone exp. Paid (B) Goods purchase from das gupta

7. True / false

(1) If a proprietor uses the goods of his business for his personal purpose treat as sale then it transferred to sales account

(2) Goods may be lost on fire or as a result of any natural calamity. The cost of such goods should be reduced out of the stock of goods

(3) All expenses and income accounts are closed by transferring them to the respective revenue accounts such as trading account and profit & loss a/c.

(A) TFF (B) FTT (C) FTF (D) FTT

8. If the account of Mr x is to be debited for Rs. 1000 but it is debited for Rs. 100 while the account of Mrs x account is to be debited for Rs 100 but it is debited by Rs 1000 then rectify entry is ____

(A) Mr x a/c debited by 100, Mrs x a/c credited by 1000

(B) Mr x a/c debited by 1000, Mrs x a/c credited by 100

(C) Mr x a/c debited by 900, Mrs x a/c credited by 900

(D) None of these

9. Wages Rs 1000 paid for machinery and Rs 1000 debited in wages account then recfication of this entry

(A) Machinery a/c debited wages credited

(B) Wages debited machinery credited

(D) None of these

10. Stock worth Rs 255 taken for use of Mr dayananda the accountant has been entered in sales day both then rectify this entry as follows

(A) Sales a/c debited, Suspense a/c credited (B) Stock a/c debited, sales a/c credited

11. An amount paid to cashier, mr ramchandra rs T15 as salary for November month has been debited to his personal a/c as Rs 757 then rectify this entry as follows :-

(A) Salary account Debit Rs 775 ramchandra’s credited Rs 757 and suspense account credited Rs. 18

(B) Ram chandra’s debited Rs 757, suspense account debited Rs. 18 and salary account credited Rs 775

(D) None of this

12. Salary outstanding Rs 1800 then entry should be made.

(A) Salary account debit, cash account credit

(B) Salary account debit, outstanding salary credit

(D) None

13. The sundry debtor for the year 2005 are Rs 50000 the bad debts amounted to Rs 4000 as on 31-12-2005 already shown in trail balance. Write off further bad debts Rs 5000 show the above internal adjustments appear in final accounts

(A) In profit & loss a/c bad debts Rs 9000 and balance sheet shows amount of debtors Rs 45000

(B) In profit & loss a/c bad debts Rs 5000 and balance sheet shows amount of debtors Rs 45000

(D) None

14. Mathematical equation for provision for doubtful debts

(A) A + B – O (B) B + A – O (C) B + N – O (D) None

15. Calculate current ratio from balance sheet

As at 31 – 12 – 2001

Equity share capital 50000 Fixed assets 87500

8% pref. share capital 10000 Invest map 25000

Reserve fund 40000 Stock 30000

6% debentures 20000 Debtors 13500

Creditors 30000 Bank balance 7000

Profit & loss account Preliminary expenses 8000

2000 1000 171000

2001 20000 21000

171000

(A) 4.16 : 1 (B) 2.16 : 1 (C) 3.17:1 (D) None

16. Calculate debt to equity capital from above balance sheet

(A) 2.5 (B) 2.7 (C) 3.5 (D) None

17. From following figures calculate creditors turnover ratio

Credit purchases during 2001 Rs. 2,00,000

Creditors on 1.1.2001 40000

Creditors on 31.12.2001 20000

Bills payable on 1.1.2001 8000

Bills payable on 31.12.2001 12000

(A) 10 times (B) 15 times (C) 5 times (D) None

18. Calculate capital gearing ratio and test the company for trading on equity based on the following information of m/s human & company supplied to you :

Equity share capital 400000 Fixed assets 1500000

Reserve and surplus 440000 Current assets 500000

12% debentures 1200000 Cash & bank 400000

10% pref. share capital 360000

2400000 2400000

(A) 35% (B) 75% (C) 90% (D) 65%

19. Following are the extracts from a Balance sheet :-

Building account 1.4.2001 31.3.02

Provision for depreciation 400000 600000

Profit & loss 400000 110000

Profit & loss 140000 358000

(1) Building Rs 400000 purchased during the year

(2) Part of premises costing Rs 200000 was sold for Rs 220000 depreciation provided on this was Rs. 40000 what is amount transfer in profit & loss from building account

(A) 60000 (B) 80000 (C) 90000 (D) 220000

20. The following data are obtained from the records of a company.

First year Second year

Sales 80000 90000

Profit 10000 14000

(1) Profit volume ratio (2) Break even point

(A) 15% Rs. 55000 (B) 35% Rs. 10000 (C) 25% Rs. 50000 (D) 40% Rs. 55000

21. A company budgets to produce 120 units, each using 3 kg. material @ Rs 2 per Kg. actual production is 100 units actual material used is 330 Kg. @ Rs 2.20 per Kg. The material usage variance is

(a) 6 (A) (b) 40 (F) (c) 66 (F) (d) 60 (F)

22. The standard cost of a certain chemical mixture is as under 40% of material A of Rs 20 per tone. 60% of material B at 30 per tonne. A standard loss of 10% is expected in production. The following actual cost data is given for period

180 tonnes material A at a cost of Rs 18 per tonne

220 tonnes material B at a cost of Rs 34 per tonne.

(1) Material price variance (2) Material usage variance

(a) 520 (F) 316 (A) (b) 520 (F), 316 (F) (c) 520 (A), 316 (F) (d) 520 (A), 316 (A)

23. Calculate amount from provision per tax account which is transfer to funds from operations account

2006 2007

Profit & loss a/c 50000 80000

Provision for taxation 10000 15000

(A) 7500 (2) 5700 (3) 2500 (4) 50000

24. Calculate the profit earned. Fixed cost Rs 500000 variable cost Rs 10 per unit – selling price Rs 15 per unit output 150000 units

(A) 250000 (B) 375000 (C) 72000 (D) 80000

25. Material consumed Rs. 160000. Direct wages Rs. 80000 Factory overheads Rs 16000 office overheads 10% of factory cost, selling overheads Rs. 12000 units produced 4000 selling price per unit Rs 100 calculate cost of goods sold __________

(A) 281600 (B) 253440 (C) 256000 (D) None

26. Calculate cash from investing activities from following information :-

Sales of fixed assets Rs 80000

Proceeds from issue of share capital Rs 90000

Interest received Rs. 5000

Dividend paid Rs 15000

(A) 8500 (B) 95000 (C) 170000 (D) None

27. Find the value of purchase of machinery during the year

Opening balance machinery 6000

Closing balance of machinery 360000

Sale of machinery [Cost – Dep = 7000] 6000

Depreciation [ Whole year] 23000

(A) 85000 (B) 95000 (C) 140000 (D) 75000

28. Calculate break even print from the following figures

Total sales Rs 500000

Variable expenses Rs 275000

Net profit Rs 108000

29. The following figures are available are available from the records of venus enterprises as at 31 march

1988 1989

Rs. Inlakhs Rs. In lakhs

Sales 150 200

Profit 30 50

Calculate p/v ratio and total fixed expenses

(A) 40% ; 30 (B) 30 % ; 40 (C) 70 % ; 30 (D) 30 % ; 70

30. From the following details find out selling price if

Variable cost = Rs 36

Total fixed cost = Rs 108000

Selling price = ?

BEP = 6000 units

(A) 98 (B) 18 (C) 48 (D) 40

31. Calculate margin of safety if

Selling price – 50

Variable cost – 30

Profit – 75000

(A) 275300 (B) 187500 (C) 180400 (D) 270150

SMU PAPERS AND ASSIGNMENTS

Friday 27 July 2012

MB0041, MBA-1, Financial & Management Accounting

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