MBA /PGDBA/MBABF Semester 1 MB0041/MBABF Financial and Management Accounting- 4 Credits (Book ID: B1624) Assignment (60 Marks)

Note: Answer all questions (with 300 to 400 words each) must be written within 6-8 pages. Each Question carries 10 marks 6 X 10=60

Q1. An accountant finds that the trial balance of his client did not tally and it showed an excess credit of Rs.
69.74. He transferred it to a suspense account and later discovered the following errors. a) Rs. 44.37 paid to Anand has been credited to his account as Rs. 34.37. b) A purchase of Rs. 145.50 has been posted as Rs. 154.50 to the purchases account. c) An expenditure of Rs. 158 on repairs has been debited to the buildings account. d) Rs. 80 was allowed by B as discount which has not been entered in the books. e) A sum of Rs. 125.05 realised on the sale of old furniture has been posted to the sales account. Give journal entries to rectify the errors and show the suspense account as it would appear after adjustments Hint: Total of suspense a/c = 78.74 Q2. Distinguish between management accounting and financial accounting.

Q3. Draw the Balance Sheet for the following information provided by Sarawath Ltd.. a. b. c. d. e. f. g. h. i. Current Ratio Liquidity Ratio Net Working Capital Stock Turnover Ratio Ratio of Gross Profit to Sales Fixed Asset Turnover Ratio Average Debt collection period Fixed Assets to Net Worth Reserve and Surplus to Capital : : : : : : : : : 2.50 1.50 Rs.300000 6 times 20% 2 times 2 months 0.80 0.50

Hint: B/S total 1100000

Q4. Following is the balance sheet for the period ending 31st March 2006 and 2007. If the current years net loss is Rs.38,000, calculate the cash flow from operating activities.
31 MARCH 2006 Short-term loan to employees Creditors Provision for doubtful debts Bills payable Stock in trade Bills receivable Prepaid expenses Outstanding expenses 15,000 30,000 1,200 18,000 15,000 10,000 800 300 2007 18,000 8,000 20,000 13,000 22,000 600 500
st

Hint: Net cash lost in operating activities (69800) Q5. The following data are related to the manufacture of a standard product during the month of July 2009.
Raw materials consumed Direct wages Machine hours worked Machine hours rate Administrative overheads Selling overheads Units produced Units Sold Rs.15,000 Rs. 9,000 900 hours Rs.5 20% of works cost Re.0.50 per unit 17,100 16,000 @ Rs.4 per unit

Prepare a cost sheet from the above to show: a. The cost per unit b. The profit per unit sold and profit for the period

Hint: Profit = 24000

Q6. Write the differences between absorption costing and marginal costing.