MB0041 – Financial And Management Accounting


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Fall 2012
Master of Business Administration- MBA Semester 1
MB0041 – Financial And Management Accounting - 4 Credits
(Book ID: B1624)
Assignment Set - 1 (60 Marks)
Note: Each question carries 10 Marks. Answer all the questions.

Q1. Explain the process involved in accounting.
Answer : As implied earlier, today's electronic accounting systems tend to obscure the traditional forms of the accounting cycle. Nevertheless, the same basic process that bookkeepers and accountants used to perform by hand are present in today's accounting software.
ACCOUNTING CYCLE :
An accounting cycle is a



Q2. The salaries paid in 2004 is Rs. 5,00,000; Salaries outstanding is Rs. 20,000; Salaries paid in advance for 2004 is Rs. 30,000. What is the actual salary expenditure for 2004? Which accounting principle is involved in this and explain that principle.
Answer : 1. The principle …


3. Find the value of the following:
a. If the total assets are Rs. 87,000 and the liabilities are Rs. 47,000, find out the amount of capital.

Answer : Total a

b. If the capital of proprietor is Rs. 4,00,000 and the total assets are Rs. 6,00,000, what is the amount of liabilities to outsiders?
Answer : Capital


c. If creditors are Rs. 56,000, bank overdraft is Rs.1,00,000, and outstanding expenses are Rs. 8,000, what is the total amount of assets?
Answer : creditor

d. Fixed assets are Rs.70,000 and current assets are Rs.1,00,000 and the creditors are Rs.30,000. What is capital?
Answer : Fixed a

4. Enter the following transactions in the single column cash book of Gopichand.

1st. Commenced business with cash                                                                                20000
2nd.  Bought goods for cash                                                                                         5000
3rd.  Sold goods for cash                                                                                               4000
4th.  Goods purchased from Ravi Kumar                                                             10000
10th. Paid to Ravi Kumar                                                                                              7000
14th. Cash sales                                                                                                                8000
18th. Purchased furniture for office                                                                        4000
22nd. Paid wages                                                                                                                500
25th. Paid rent                                                                                                                    600
30th. Received commission                                                                                        4000
30th. Withdrew for personal purpose                                                                    1000
31st    Paid Salary                                                                                                                900
Cash balance                                                                                                      17000                                          
Hint: Goods Purchased from Ravi Kumar is a credit purchase.
Hint: Goods Purchased from Ravi Kumar is a credit purchase.


Q5. Find out the missing figures.


Office stationery
Consumables

Opening stock
5000
8000
Purchased during the year
25000
?
Closing stock
3000
6000
Consumed for the year
?
24000


 Hint : Office stationery consumed for the year =27000
Consumables purchased during the year = 22000
Answer : Solution:
Q6. Explain the tools of management accounting.
Answer : Tools of Management Accounting
Management Accounting uses the following tools or techniques to fulfill its responsibilities and duties towards management.
• Financial Statement


Dear students get fully solved assignments
call us at :- 08263069601 
            or
mail us at  help.mbaassignments@gmail.com

Master of Business Administration- MBA Semester 1
Fall 2012
MB0041 – Financial and Management Accounting- 4 Credits
(Book ID: B1624)
Assignment Set - 2 (60 Marks)
Note: Each question carries 10 Marks. Answer all the questions.

Q1. Compute trend ratios and comment on the financial performance of Infosys Technologies Ltd. from the following extract of its income statements of five years.
                                                         




(in Rs. Crore)
Particulars
  2010-11
2009-10
2008-09
2007-08
2006-07

Revenue

27,501

22,742

21,693

16,692

13,893
Operating
Profit (PBIDT)
8,968
7,861
7,195
5,238
4,391

PAT from ordinary activities

6,835

6,218

5,988

4,659

3,856


(Source: Infosys Technologies Ltd. – Annual Report)
Hint: The Revenue and Operating Profit (PBIDT) have almost doubled in four years. The PAT from ordinary activities has increased by 77.26% in the same period.
Answer : Computing trend

Q2. What is fund flow analysis? What are the objectives of analysing flow of fund?
From the following balance sheets of Joy Ltd., prepare a cash flow statement under indirect method.


Liabilities
2005
2006
Equity share capital
3,00,000
4,00,000
8% redeemable pref. share capital
1,50,000
1,00,000
General reserve
40,000
70,000
Profit and loss
30,000
48,000
Proposed dividend
42,000
50,000
Sundry creditors
55,000
83,000
Bills payable
20,000
16,000
Provision for taxation
40,000
50,000
Total
6,77,000
8,17,000
Assets


Goodwill
1,15,000
90,000
Land and building
2,00,000
1,70,000
Plant
80,000
2,00,000
Sundry debtors
1,60,000
2,00,000
Stock
77,000
1,09,000
Bills receivable
20,000
30,000


Additional Information
a) Depreciation of Rs.10,000 and Rs.20,000 has been changed on plant and building during the current year.
b) An interim dividend of Rs.20,000 has been paid during the current year.
c) Rs.35,000 was paid during the current year for income tax.
Hint: Cash flow from operating activities Rs.1,25,000; Cash flow from investing activities (Rs.1,20,000); Cash flow from financing activities (Rs.12,000).
Answer : Solution :
Schedule of changes in working capital


Q3. Calculate the cost of raw materials purchased from the following data:
Opening stock of raw materials                                           Rs.10,000
Closing stock of raw materials                                              Rs.15,000
Expenses on purchases                                                          Rs.5,000
Direct wages                                                                            Rs.50, 000
Prime costs                                                                              Rs.1, 00,000

Hint: Cost of Raw Materials purchased is Rs.50,000
Answer :
Solution: -           Calculation

Q4. Distinguish between absorption costing and marginal costing
Answer : Absorption Costing vs Marginal Costing
The system of computing the cost of production is known as costing. The main purpose of any costing system is to identify the cost incurred for the production of a unit output. In a manufacturing company, identifying the cost associated with a unit product is very important to price the product such that the company could make a profit and survive to exist in the future. Both absorption costing and marginal costing are traditional system of


Q6. Explain the essential features of budgetary control.
Answer : An effective budgeting system should have essential features to get best results. In this direction, the following may be considered as essential features of an effective budgeting.

Business Policies defined: The top management of an organization strives to have an action plan for every activity and for each department. Every


Dear students get fully solved assignments
call us at :- 08263069601 
            or
mail us at  help.mbaassignments@gmail.com

MB0041 – Financial And Management Accounting


Dear students get fully solved assignments
call us at :- 08263069601 
            or
mail us at  help.mbaassignments@gmail.com


Fall 2012
Master of Business Administration- MBA Semester 1
MB0041 – Financial And Management Accounting - 4 Credits
(Book ID: B1624)
Assignment Set - 1 (60 Marks)
Note: Each question carries 10 Marks. Answer all the questions.

Q1. Explain the process involved in accounting.
Answer : As implied earlier, today's electronic accounting systems tend to obscure the traditional forms of the accounting cycle. Nevertheless, the same basic process that bookkeepers and accountants used to perform by hand are present in today's accounting software.
ACCOUNTING CYCLE :
An accounting cycle is a



Q2. The salaries paid in 2004 is Rs. 5,00,000; Salaries outstanding is Rs. 20,000; Salaries paid in advance for 2004 is Rs. 30,000. What is the actual salary expenditure for 2004? Which accounting principle is involved in this and explain that principle.
Answer : 1. The principle …


3. Find the value of the following:
a. If the total assets are Rs. 87,000 and the liabilities are Rs. 47,000, find out the amount of capital.

Answer : Total a

b. If the capital of proprietor is Rs. 4,00,000 and the total assets are Rs. 6,00,000, what is the amount of liabilities to outsiders?
Answer : Capital


c. If creditors are Rs. 56,000, bank overdraft is Rs.1,00,000, and outstanding expenses are Rs. 8,000, what is the total amount of assets?
Answer : creditor

d. Fixed assets are Rs.70,000 and current assets are Rs.1,00,000 and the creditors are Rs.30,000. What is capital?
Answer : Fixed a

4. Enter the following transactions in the single column cash book of Gopichand.

1st. Commenced business with cash                                                                                20000
2nd.  Bought goods for cash                                                                                         5000
3rd.  Sold goods for cash                                                                                               4000
4th.  Goods purchased from Ravi Kumar                                                             10000
10th. Paid to Ravi Kumar                                                                                              7000
14th. Cash sales                                                                                                                8000
18th. Purchased furniture for office                                                                        4000
22nd. Paid wages                                                                                                                500
25th. Paid rent                                                                                                                    600
30th. Received commission                                                                                        4000
30th. Withdrew for personal purpose                                                                    1000
31st    Paid Salary                                                                                                                900
Cash balance                                                                                                      17000                                          
Hint: Goods Purchased from Ravi Kumar is a credit purchase.
Hint: Goods Purchased from Ravi Kumar is a credit purchase.


Q5. Find out the missing figures.


Office stationery
Consumables

Opening stock
5000
8000
Purchased during the year
25000
?
Closing stock
3000
6000
Consumed for the year
?
24000


 Hint : Office stationery consumed for the year =27000
Consumables purchased during the year = 22000
Answer : Solution:
Q6. Explain the tools of management accounting.
Answer : Tools of Management Accounting
Management Accounting uses the following tools or techniques to fulfill its responsibilities and duties towards management.
• Financial Statement


Dear students get fully solved assignments
call us at :- 08263069601 
            or
mail us at  help.mbaassignments@gmail.com

Master of Business Administration- MBA Semester 1
Fall 2012
MB0041 – Financial and Management Accounting- 4 Credits
(Book ID: B1624)
Assignment Set - 2 (60 Marks)
Note: Each question carries 10 Marks. Answer all the questions.

Q1. Compute trend ratios and comment on the financial performance of Infosys Technologies Ltd. from the following extract of its income statements of five years.
                                                         




(in Rs. Crore)
Particulars
  2010-11
2009-10
2008-09
2007-08
2006-07

Revenue

27,501

22,742

21,693

16,692

13,893
Operating
Profit (PBIDT)
8,968
7,861
7,195
5,238
4,391

PAT from ordinary activities

6,835

6,218

5,988

4,659

3,856


(Source: Infosys Technologies Ltd. – Annual Report)
Hint: The Revenue and Operating Profit (PBIDT) have almost doubled in four years. The PAT from ordinary activities has increased by 77.26% in the same period.
Answer : Computing trend

Q2. What is fund flow analysis? What are the objectives of analysing flow of fund?
From the following balance sheets of Joy Ltd., prepare a cash flow statement under indirect method.


Liabilities
2005
2006
Equity share capital
3,00,000
4,00,000
8% redeemable pref. share capital
1,50,000
1,00,000
General reserve
40,000
70,000
Profit and loss
30,000
48,000
Proposed dividend
42,000
50,000
Sundry creditors
55,000
83,000
Bills payable
20,000
16,000
Provision for taxation
40,000
50,000
Total
6,77,000
8,17,000
Assets


Goodwill
1,15,000
90,000
Land and building
2,00,000
1,70,000
Plant
80,000
2,00,000
Sundry debtors
1,60,000
2,00,000
Stock
77,000
1,09,000
Bills receivable
20,000
30,000


Additional Information
a) Depreciation of Rs.10,000 and Rs.20,000 has been changed on plant and building during the current year.
b) An interim dividend of Rs.20,000 has been paid during the current year.
c) Rs.35,000 was paid during the current year for income tax.
Hint: Cash flow from operating activities Rs.1,25,000; Cash flow from investing activities (Rs.1,20,000); Cash flow from financing activities (Rs.12,000).
Answer : Solution :
Schedule of changes in working capital


Q3. Calculate the cost of raw materials purchased from the following data:
Opening stock of raw materials                                           Rs.10,000
Closing stock of raw materials                                              Rs.15,000
Expenses on purchases                                                          Rs.5,000
Direct wages                                                                            Rs.50, 000
Prime costs                                                                              Rs.1, 00,000

Hint: Cost of Raw Materials purchased is Rs.50,000
Answer :
Solution: -           Calculation

Q4. Distinguish between absorption costing and marginal costing
Answer : Absorption Costing vs Marginal Costing
The system of computing the cost of production is known as costing. The main purpose of any costing system is to identify the cost incurred for the production of a unit output. In a manufacturing company, identifying the cost associated with a unit product is very important to price the product such that the company could make a profit and survive to exist in the future. Both absorption costing and marginal costing are traditional system of


Q6. Explain the essential features of budgetary control.
Answer : An effective budgeting system should have essential features to get best results. In this direction, the following may be considered as essential features of an effective budgeting.

Business Policies defined: The top management of an organization strives to have an action plan for every activity and for each department. Every


Dear students get fully solved assignments
call us at :- 08263069601 
            or
mail us at  help.mbaassignments@gmail.com