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7/23/2019 MB0041_Summer 2015 Assignment
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ASSIGNMENT
DRIVE SUMMER 2015
PROGRAM MBA/ MBADS/ MBAFLEX/ MBAHCSN3/ PGDBAN2
SEMESTER I
SUBJECT CODE &
NAME
MB0041 & FINANCIAL AND MANAGEMENT ACCOUNTING
BK ID B1624
CREDIT 4
MARKS 60
Q.No Criteria Marks Total Marks
1 I nventory in a business is valued at the end of an account
ing period, at either cost or market
price, whichever is lower. Thi s is accepted convention or a
practice in accounting.
Give a small in troduction on accounti ng conventions and
elucidate all the eight accounting
conventions.
Introduction of accounting conventionExplanation of all the 8
types of conventions
28
10
2 Analyse the following tr ansactions according to traditional
approach.
a. 1.1.2011 Sunitha star ted his business with cash Rs.
5,00,000
b. 2.1.2011 Borr owed from Malath i Rs. 5,00,000
c. 2.1.2011 Purchased furni tur e Rs. 1,00,000
d. 4.1.2011 Purchased fur ni tur e from Meenal on credit Rs.
1,50,000
e. 5.1.2011 Purchased goods for cash Rs. 50,000
f . 6.1.2011 Purchased goods from Ram on credit Rs. 2,50,000
g. 8.1.2011 Sold goods for cash Rs. 1,25,000
h. 8.1.2011 Sold goods to Shyam on credit Rs. 55,000
i. 9.1.2011 Received cash f rom Shyam Rs. 25,000
j.
10.1.2011 Paid cash to Ram Rs. 90,000
A Fil li ng in all the details in the table for all the
transactions. Each transaction carries one
mark(1*10=10)
10 10
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3The following items are found in the trial balance of M/s
Sharada Enterprise on 31st December,
2000.
Sundry Debtors Rs.160000Bad Debts written off Rs 9000
Discount allowed to Debtors Rs. 1800
Reserve for Bad and doubtful Debts 31-12-1999 Rs. 16500
Reserve for discount on Debtors 31-12-1999 Rs. 3200
You are required to provide the bad and doubtful debts at 5% and
for discount on debtors at 2%.
Show the adjustments for bad debts, bad debts reserve, discount
account, and provision for
discount on debtors.
Calculation and WorkingsConclusion
82
10
4 The reports prepared in f inancial accounting are also used in
the management accounting.Bu t there are few major dif ferences
between financial accounti ng and management
accounting.
Explain the dif ferences between f inancial accounting and
management accounting in vari ous
dimensions.
Writing down all the differences between thefinancial and
management accounting
10 10
5Draw the Balance Sheet f or the fol lowing in formation
provided by Sandeep L td..
a. Current Ratio : 2.50
b. L iquidity Ratio : 1.50
c. Net Worki ng Capital : Rs.300000
d. Stock Turnover Ratio : 6 times
e. Ratio of Gross Prof i t to Sales : 20%
f.
Fixed Asset Tur nover Ratio : 2 times
g. Average Debt collection period : 2 months
h. Fixed Assets to Net Worth : 0.80
i. Reserve and Surplus to Capital : 0.50
Preparation of Balance sheet (Includes all the ratios) 10 10
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6Wr ite the main differences between cash f low analysis and
fund flow analysis.
Foll owing is the balance sheet for the peri od ending 31st
March 2011 and 2012. I f the
current years net loss is Rs.38,000, Calculate the cash fl ow fr
om operating activities.
31st MARCH
2011 2012
Short-term loan to employees 15,000 18,000
Creditor s 30,000 8,000
Provision for doubtful debts 1,200 -
Bi l ls payable 18,000 20,000
Stock in trade 15,000 13,000
Bi l ls receivable 10,000 22,000
Prepaid expenses 800 600Outstanding expenses 300 500
Differences between cash flow and fund flowanalysisPreparation
of statement showing cash flow fromoperating activities
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6
10
NoteAnswer all questions. Kindly note that answers for 10 marks
questions should be approximately of400 words. Each question is
followed by evaluation scheme.
