R09
Code No: E54104
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA – I Semester Examinations, August 2011
FINANCIAL ACCOUNTING AND ANALYSIS
Time: 3hours Max. Marks: 60
Answer any five questions
All questions carry equal marks
- - -
1. Explain the following:Code No: E54104
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA – I Semester Examinations, August 2011
FINANCIAL ACCOUNTING AND ANALYSIS
Time: 3hours Max. Marks: 60
Answer any five questions
All questions carry equal marks
- - -
a) What is Journalisation Process and what are the debit and credit governing
rules involved in journalisation?
b) Journalize following entries in the books Mahadevan and Co for the month ending March 2009:
No
Date
Description
Amount Rs.
1
1-Mar-09
Business Started with Capital brought in cash
500000
2
5-Mar-09
Cash deposited in Canara Bank
400000
3
10-Mar-09
Purchased goods from Mr. Rama Rao on credit
800000
4
15-Mar-09
Sold goods to Mr. Krishna Rao on Credit
1200000
5
20-Mar-09
Paid Office Rent & Salaries
200000
6
31-Mar-09
Received Cash from Mr. Krishna Rao on account
1150000
2. Prepare Trading, Profit & Loss A/c and Balance Sheet for XYZ Ltd for the
year ended with the help of following Trial Balance:
Ledger Account
Debit Rs.
Credit Rs.
Capital
200000
Institutional Loan
340000
Sales
1000000
Working Capital Loan
200000
Notes Payable
20000
Bills payables
25000
Interest Received
90000
Purchases Returns
25000
Plant & Machinery
15000
Buildings
20000
Furniture & Fixtures
500000
Investments-ICDs
400000
Receivables
9000
Purchases
700000
Discount allowed
15000
Wages
30000
Salaries
50000
Traveling expenses
2000
Freight
5000
Insurance
5000
Commission paid
2000
Bank
10000
Repairs
7000
Opening stock
130000
Total
1900000
1900000
Adjustments:
Closing Stock Valued Rs.500000
Outstanding Interest to be received Rs.100000
Outstanding Wages Rs.20000
Outstanding Salaries Rs.50000
Depreciation on Plant & Machinery 10%
Depreciation on Furniture & Fixtures 10%
Provision for doubtful debts 10%
3. Explain the following:
a) Prepare Stores Ledger A/c under FIFO for ABC Ltd for the Month Ending:
Cont…3
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No
Date
Description
Qty. KGs
Rate Per KG
1
1-Mar-09
Received Stock
1000
30
2
3-Mar-09
Received Stock
5000
50
3
5-Mar-09
Issued stock to Job-09100
3000
4
8-Mar-09
Received stock
5000
60
5
10-Mar-09
Issued stock to Job-09101
2500
6
31-Mar-09
Issued stock to Job-09102
3500
Prepare Depreciation Account with the help of following information, if company had a policy of WDV 20% per annum, if a machine worked even one day in month half of the depreciation will be charged during that year & above 6 months for full year. The Accounting Year of the company is 1st April to 31st
March of every year:
IDHL Ltd purchased a second hand machine on 01-01-1999 for Rs.500000 and spent Rs.100000 on installation. On 01-07-2000 company purchased another machine for Rs.500000 & On the same day the first machine (i.e., Rs. 5.00 Lakhs) was sold for Rs. 350000. Prepare Depreciation & Machine Account.
4. Explain the following:
a) What are the different methods of evaluation of Goodwill?
b) What are the different methods of Inventory Valuation?
5. Explain the following:
a) Prepare Model Journal Entries for Issue & Redemption of Debenture with Discount, Par & Premiums
b) Prepare model journal entries for issue of equity shares at following levels:
Against Application, Allotment with Premium/Discount, first call & final call.
6. Prepare Statement of Changes in Working Capital Position & Determine Net Change in during two periods:
Balance Sheet
2008
2009
2008
2009
Equities
Rs.
Rs.
Assets
Rs.
Rs.
Equity Capital
200000
400000
Land & Buildings
200000
500000
Preference Shares
500000
500000
Motor Vehicles
500000
300000
Debentures
600000
500000
Furniture & Fixtures
600000
400000
LT Loans
500000
600000
ST Investments
100000
100000
Creditors
100000
200000
Marketable Securities
400000
500000
Bills Payable
400000
300000
Debtors
700000
500000
ST Bank Loan
200000
500000
Bills Receivables
50000
300000
Income Tax Provision
150000
200000
Outstanding Interest
100000
500000
Dividend Provision
200000
400000
Prepaid Expenses
70000
200000
Outstanding Salaries
100000
400000
Inventory
180000
550000
Incomes received in advance
50000
0
Cash & bank
100000
150000
Total
3000000
4000000
Total
3000000
4000000
7. Explain the following:
a) Differentiate Cash from Operations & Funds from Operations Statements
b) Limitations of Financial Statement Analysis
8. The following is the Balance Sheet of RNGCS Ltd:
Particular
2008
2009
Particulars
2008
2009
Equities
Rs.
Rs.
Assets
Rs.
Rs.
Equity Capital
200000
400000
Land & Buildings
200000
500000
Reserves & Surplus
500000
500000
Motor Vehicles
500000
300000
Debentures
600000
500000
Furniture & Fixtures
600000
700000
LT Loans
500000
600000
ST Investments
100000
100000
Creditors
100000
200000
Marketable Securities
400000
500000
Bills Payable
400000
300000
Debtors
800000
500000
ST Bank Loan
200000
500000
Bills Receivables
50000
400000
Income Tax Provision
200000
200000
Outstanding Interest
100000
500000
Dividend Provision
300000
400000
Prepaid Expenses
250000
100000
Total
3000000
3600000
Total
3000000
3600000
You are requested to determine Liquidity and Leverage Ratios & comment of financial position of the company.
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